How to Set and Achieve a Net Zero Target: A Practical Guide for Food Companies

What defines a strong net zero commitment?

Not all net zero targets are created equal.

Many companies have pledged to achieve net zero, but the strength of these commitments depends on how they align with science-based standards and best practices. Frameworks such as the SBTi Corporate Net Zero Standard, ISO Net Zero Guidelines, and UN Expert Group Integrity Matters outline key criteria for credible net zero strategies.

A robust net zero target should:

• Align with 1.5°C pathways, ensuring reductions are ambitious enough to meet global climate goals.
• Cover Scopes 1, 2, and 3 emissions, addressing both direct and supply chain emissions.
• Prioritize absolute emissions reductions (typically at least 90%) rather than relying heavily on offsets.
• Include interim targets every 5-10 years to track progress and ensure accountability.
• Plan for phasing out fossil fuels, aligning corporate advocacy with climate goals, and supporting a just transition for affected workers and communities.
• Use independent verification to ensure credibility and transparency.

While carbon removals and offsets can play a role, most frameworks limit their use to 5-10% of total emissions reductions, reinforcing that companies must focus on real reductions and insets first. By following these best practices, food companies can set net zero targets that drive genuine impact rather than simply serving as greenwashing.

Step 1: Establishing an accurate baseline

A credible net zero strategy begins with a clear understanding of where emissions come from. Without a reliable greenhouse gas (GHG) inventory, businesses risk setting targets based on incomplete or misleading data.

To build a strong emissions baseline:

• Use granular data: Relying on location- and crop-specific emission factors (rather than global averages) improves accuracy.
• Prioritize supplier data: Incorporating primary supplier data where possible ensures a more precise footprint.
• Ensure consistency: Aligning methodologies across business units and reporting frameworks avoids discrepancies and enables better tracking over time.

Step 2: Setting a science-based net zero target

Setting a net zero goal isn’t just a sustainability function, it requires buy-in across procurement, R&D, compliance, finance, sales, and leadership. To ensure alignment:

1. Identify each team’s role in sustainability: Procurement teams may focus on supplier requirements, while R&D teams look at reformulation. Aligning net zero goals with existing priorities increases engagement.
2. Bridge sustainability and business strategy: A successful net zero roadmap highlights opportunities like cost savings (e.g., energy efficiency), product innovation, risk mitigation (e.g., regulatory compliance, supply chain resilience), and being able to demonstrate maturity to downstream retail customers.
3. Commit to Science-Based Targets (SBTi): Aligning goals with SBTi ensures credibility and keeps companies on track with industry benchmarks.

Many companies struggle to balance ambition with feasibility. Some set aggressive goals without a clear plan, while others hesitate, fearing backlash if targets aren’t met. The key is to set ambitious yet achievable interim goals, communicate progress transparently, and adapt as methodologies improve.

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Step 3: Prioritizing high-impact changes

Not all emissions are equal. Companies must focus on the areas that deliver the biggest reductions. Prioritizing interventions based on impact, feasibility, and supplier readiness ensures that resources are allocated effectively.

High-impact focus areas:

• Ingredients and raw materials with the highest carbon intensity
• Highest-volume ingredient suppliers
• Energy-intensive manufacturing processes

Evaluating trade-offs:

• Carbon reduction potential – How much impact does the change have?
• Cost and feasibility – Are there significant upfront costs with long-term savings?
• Supplier engagement – Are key suppliers willing and able to implement the change?

Food and beverage companies who are leading the way on net zero strategy are embedding sustainability into procurement decisions, selecting lower-emission materials and incentivizing suppliers to adopt climate-smart practices.

Step 4: Engaging suppliers for Scope 3 reductions

Scope 3 emissions, the indirect emissions from a company’s supply chain, often represent 80-90% of a food business’s carbon footprint. Yet, they are the hardest to measure and reduce. Many suppliers experience survey fatigue, overwhelmed by multiple data requests without clear guidance on action.

To address this, companies must move beyond data collection to collaboration.

• Develop strong supplier relationships. Open dialogue fosters trust and encourages transparency.
• Co-create climate goals. Instead of imposing targets, work with suppliers to set feasible, science-aligned reduction strategies.
• Offer incentives and support. Funding regenerative agriculture initiatives, rewarding low-carbon sourcing, and providing technical assistance can accelerate supplier progress.

Rather than simply requesting emissions data, food companies can actively collaborate with suppliers to drive meaningful reductions. By providing resources, guidance, and incentives, these companies can help suppliers adopt more sustainable practices. Some are introducing supplier support programs, such as preferential contracts or financial incentives, to encourage emissions reductions and accelerate the transition to climate-smart operations.

Step 5: Measuring and reporting progress

Net zero isn’t a one-time commitment. It’s an ongoing process of measurement, adjustment, and transparency. Food companies need strong systems to track their impact and communicate progress both internally and externally.

External reporting: Frameworks like SBTi, CDP, and CSRD provide credibility and allow investors and customers to compare efforts across industries.

Internal alignment: Regular sustainability updates ensure leadership and cross-functional teams stay informed and accountable.

Supplier feedback loops: Companies that share insights, benchmarks, and best practices with suppliers foster continuous improvement.

One of the biggest challenges in net zero implementation is the evolving nature of carbon accounting. As methodologies and data collection improve, numbers will shift. Companies should embrace transparency over perfection and focus on consistent progress rather than flawless data.