New SBTi Corporate Net Zero Standards

Overview

In November 2025, the Science Based Targets initiative (SBTi) released a draft update to its Corporate Net-Zero Standard (Version 2). While the original V1 standard focused on target setting, V2 raises the bar on implementation, introducing stronger expectations for supplier engagement, data traceability, third-party verification, and the use of high-quality removals and Environmental Attribute Certificates (EACs). Companies are encouraged to adopt the new Corporate Net-Zero standard (CNZS) once it is published, with full implementation required starting January 1, 2028. It is important for Food & Ag companies to note that the CNZS operates in conjunction with the SBTi FLAG Guidance for the land-use sector.

At Regrow, we’re ready to help you meet these new expectations and accelerate progress toward your net-zero goals.

Key elements in SBTi V2 Corporate Net-Zero Standard

Requirements for action on emissions abatement

• Version 2 doubles down on requiring companies to account for all emissions, and to set targets for significant scope 3 emissions (i.e. those representing >5% of total scope 3). Companies can choose from the following approaches to address each commodity: Emissions intensity targets, volume alignment target, and/or supplier alignment target.  
• Where traceability is not yet feasible, companies may take action and demonstrate performance at the activity pool (i.e. supply shed) level through commodity EACs  corresponding to the target volumes, and by driving adoption of science-based targets in their supply shed, as they work to improve traceability. Use of EACs are expected to align with key criteria, including Integrity Principles that are under development but generally align with existing carbon protocol methodologies.
• New pathway: Companies can still drive action within their supply shed without full traceability by working with their suppliers to scale up action.

How to meet the latest requirements with Regrow

Companies have a range of choices when it comes to implementation and measurement partners. Regrow has worked with many of the world’s leading food & ag brands to rigorously implement high quality data collection and quantification solutions for their Scope 3 programs that are aligned with leading global standards, and can support you with the following actions: :

• Measure and prioritize: Map, measure, and prioritize your highest opportunity suppliers and their sourcing regions based on emissions hotspots and highest ROI abatement opportunities.
• Plan and coordinate: Create shared abatement plans with your suppliers that align with your net-zero targets using primary data derived from remote sensing and soil modeling.
• Emissions abatement: Run or finance a carbon reduction program with Regrow MRV, which has a 100% audit success rate across leading global registries including Verra, Climate Action Reserve, and SustainCERT.

Opportunity for Advocacy: Enable pathways and mechanisms that allow companies to invest in landscape-level actions within their overall supply shed, aligned with the advocacy paper ‘Principles for High Integrity Insetting’.

Annual progress reporting & third-party assurance

• Companies must report progress on their targets annually, and publicly report significant scope 3 emissions annually, with full scope 3 emissions inventory at least every 5 years after initial validation. Separate accounting and target setting for FLAG emissions and removals is required, in line with GHGP LSRG guidance.  FLAG removals can only be used towards FLAG targets. Limited assurance audits are mandatory, with stronger verification encouraged.

New emphasis: Full scope 3 reporting and third-party assurance are required. 

How to meet the latest requirements with Regrow 

• Primary data: Accurately report scope 3 emissions using primary data derived from remote sensing, soil models, and grower inputs.
• Impact traceability: Demonstrate emissions traceability using supply-specific emission factors derived from MRV project boundaries and your supply regions.
• Verification: Emissions data and all methods, assumptions, and calculations meet GHGp and 3rd party audit requirements.

Opportunity for Advocacy: Provide pathways for companies to co-invest in MRV and audits at a landscape level, in order to increase collaboration and bring down costs through scale.

Neutralization and ongoing emissions using removals 

• Companies are expected to take responsibility for their ongoing & residual emissions, with a requirement to neutralize 100% of residual emissions by their net-zero year, with a mandatory minimum responsibility requirement introduced in 2035 for large companies. Companies may use carbon credits and removals to meet this requirement. There are opportunities for leadership recognition for companies who choose to move faster than these timelines.

New opportunity: The standard expects companies to define a strategy for neutralizing residual emissions that includes removals, with guidance specific to the FLAG sector for land-based removals under development. 

How to meet the latest requirements with Regrow

• Quantify removals opportunity: Measure SOC removal potential in supply regions and quantity ROI of investing in removals through regenerative agriculture.
• Create removals: Generate carbon removals using Regrow MRV in alignment with GHGP LSRG.
• Audit-ready: Ensure removals and EAC investments meet high integrity standards using Regrow science with 500+ global scientific peer reviews.

Opportunity for Advocacy: Emphasize the critical importance of land-based removals for Scope 3 resilience and decarbonization, and ensure that companies have a clear incentive to invest in land-based removals.

What to do now to ensure alignment

For program managers, regulatory and measurement professionals and implementation partners:

1. Map significant scope 3 (≥5%) and priority FLAG sources; confirm minimum boundaries and attributional approach.
2. Choose target approach per commodity:
   
   • Pool-level intensity vs. volume-alignment vs. supplier-alignment—and document pool boundaries and data/EF credibility.
     If needed, plan interim EACs at the pool level (not carbon credits) to close alignment gaps; ensure benchmark fit, matching, 24-month issuance/retirement, geographic proximity, and same-pool conditions; report separately if disclosing beyond attributional effects
3. Stand up assurance. Prepare evidence for limited assurance over scopes 1, 2, significant scope 3 and target-setting metrics; plan for performance-stage assurance at renewal.
4. Plan for net-zero neutralization. Model residual emissions and a removals portfolio that meets storage-durability thresholds at net-zero; align soil-carbon/biogenic accounting with GHGP Land Sector & Removals.

Building the foundation for strong alignment

Here’s how your teams and supply chain partners can ensure you have the right funding and resources for strong SBTi alignment: 

• Build mechanisms that allow your company and partners to invest in actions that improve the landscape within their overall supply shed. Review the advocacy paper ‘principles for high integrity insetting’ for more information on this.
• Ensure your team and partners have a clear incentive to invest in land-based removals, particularly within scope 3 land-based emissions. Residual emissions requirements can support the business case for investment.
• We recognize that the cost of MRV and assurance can be high. Keep establishing partnerships with co-investment models. Together, we’ll advocate for SBTi to recognize company efforts to pool resources and collaborate on landscape level efforts. 
• Work within teams and across the supply chain to improve audit process efficiency. Regrow’s platform now offers streamlined data, which can help ensure alignment across departments and partnerships.