SBTi’s Net-Zero Standard v2.0 Signals Changes for Agriculture: Arva is Helping Companies Prepare

The Science Based Targets initiative (SBTi) has released the second consultation draft of its Corporate Net-Zero Standard v2.0, and while it’s still a draft, the direction is unmistakable: more accountable Scope 3 action and a clearer long-term role for carbon removals. For companies dependent on agricultural commodities — from food brands and retailers to apparel and ingredients suppliers — these updates are an important early look at what the next decade of climate expectations will require. The draft is currently undergoing a second round of public consultation, with the final guidance likely to be published by mid-year 2026. Once published, the updated guidance will become mandatory starting January 1, 2028.

At a high level, v2.0 aims to address long-standing challenges around agricultural supply-chain visibility, supplier engagement, and the practical reality that many companies cannot trace every ingredient back to individual farms. The draft also introduces new incentives for climate finance and for recognizing progress beyond a company’s own footprint. Some areas still need clarity, but overall, the standard moves toward a more realistic and actionable model for agriculture-heavy value chains.

Below is a streamlined breakdown of what’s changing and how Arva is helping companies prepare.

A More Realistic and Flexible Framework for Scope 3

Agricultural emissions are notoriously fragmented: production spans thousands of farms, with wide variability in climate, soils, and practices. The v2.0 draft acknowledges this by giving companies more flexibility in how they set Scope 3 targets. Instead of requiring broad, uniform percentage reductions, companies can now focus on “priority commodities” using either emissions-intensity metrics or supplier alignment.

For agriculture, this is a big step forward. Companies can choose to reduce emissions per unit of milk, rice, wheat, cotton, beef, etc., or commit to sourcing 95% of a commodity from suppliers who themselves are aligned with net-zero by 2050. Both options push action closer to the farmgate without requiring perfect traceability from day one.

SBTi also recognizes that many agricultural supply chains are “hard to trace.” The draft allows supply-shed or sourcing-region performance tracking, meaning companies can show progress for an entire region even where individual farm-level links are unavailable. This is a practical concession to reality, and it opens new pathways for region-scale regenerative agriculture programs.

New Signals on Climate Finance and Removals

One of the most noticeable updates is the shift away from “Beyond Value Chain Mitigation” toward a new supplementary climate contributions framework. It introduces an optional recognition system:

• Recognized tier: companies cover ≥1% of ongoing Scope 1–3 emissions with climate finance or verified reductions/removals.
• Leadership tier: companies internalize the cost of ≥40% of emissions through mitigation outcomes.

It’s optional but it creates a clearer, more credible way for companies to demonstrate leadership while decarbonizing their supply chains.

The draft also lays out the strongest long-term signal yet for removals. Beginning in 2035, high-income companies will be required to address a portion of their ongoing emissions through removals (a percentage still to be finalized). That requirement grows over time, reaching 100% by 2050. Only removal projects qualify; avoidance offsets won’t count. And durability becomes increasingly important as we approach midcentury.

For agriculture, the implication is clear in that reducing emissions at the farm level remains the priority — and durable, verified removals will become essential for residual emissions over time.

The Potential (and Limits) of Insets and EACs

One area drawing attention is the potential role of environmental attribute certificates (EACs), sometimes referred to as “insets.” Under v2.0, companies could purchase EACs that match the physical volume of goods they buy from an activity pool or supply shed, and apply those EACs as a reduction towards their target. This could be transformative for regenerative agriculture by directing new funding into practice change, soil carbon improvements, and biodiversity outcomes within a company’s own sourcing regions.

But this is also the section that will need the most guardrails. Ensuring additionality, avoiding double counting, and maintaining a strong link to real on-farm improvements will be essential if EACs are to be used responsibly. Final rules have not been confirmed so this will likely evolve.

What Still Needs Work

v2.0 is a strong step forward, but a few open questions remain:

• The reliance on optional recognition may reduce urgency toward targets.
• Activity-pool aggregation could obscure meaningful differences within regions.
• The removal infrastructure needed for 2035–2050 is not yet at scale.
• EACs could either mobilize real climate impact or become a diluted commodity — the rules will determine which outcome prevails.

Still, the direction is promising, especially for sectors where Scope 3 is dominated by agriculture.

How Arva Is Helping Companies Navigate the Transition

Arva has spent years building the exact capabilities that the v2.0 draft implicitly points toward: supply-shed visibility, credible MRV, regenerative practice quantification, and scalable programs that connect corporate climate goals to on-the-ground outcomes.

Here’s how we are positioned to help companies prepare for what’s coming.

Supply-Shed Insight That Matches SBTi’s New Flexibility

Because the standard now allows activity-pool and region-level tracking, companies need a clear picture of where emissions are coming from — even when farm-level traceability isn’t possible. Arva maps sourcing regions, identifies high-impact commodities, and quantifies existing practices and emissions baselines at the supply-shed level.

This gives companies a realistic starting point for setting intensity targets, designing regenerative programs, and demonstrating measurable climate progress.

MMRV That Meets the Rising Bar for Accountability

Arva’s farmer-centric MMRV solution blends field data, telematics, remote sensing, agronomic modeling, and GHG quantification. As SBTi tightens expectations around data quality and verification, companies relying on secondary data alone will face credibility challenges. Arva provides auditable, defensible evidence of emissions reductions within corporate supply chains.

Regenerative Programs Designed for Both Climate and Profitability

Reducing emissions-intensity requires practice change — but practice change requires programs that actually work for farmers. Arva designs regenerative transitions that improve soil health, reduce input costs, support yield resilience, and generate both agronomic and climate returns. This alignment is essential for long-term, scalable progress.

Pathways for Future Removals Requirements

As removals become a formal part of SBTi compliance, companies will need credible supply-chain–linked removal pathways, not just commodity carbon credits purchased on the open market. Arva quantifies soil carbon outcomes and connects companies to removal opportunities grounded in real practice change, not theoretical accounting.

Alignment With Future EAC/Inset Models

Because Arva quantifies environmental outcomes directly within supply sheds, companies can be confident that any future use of EACs or insets represents real, additional climate benefit. Our data infrastructure is already built for the quality and transparency SBTi will require.

The Takeaway for Sustainability Teams

SBTi’s Net-Zero Standard v2.0 draft is not final — but it is a clear preview of a future where agricultural supply chains must become more transparent, more traceable, and more accountable. Companies will need better data, stronger supplier engagement, and credible ways to demonstrate emissions-intensity improvements within the regions where they buy raw materials.

Arva is built to help companies get ahead of this transition. With supply-shed intelligence, rigorous MMRV, regenerative program design, and deep experience in farmer engagement, Arva is poised to connect farmers and companies prioritizing decarbonization.

The direction is unmistakeable: companies will face higher expectations. If your organization is updating its net-zero strategy or preparing for the next iteration of SBTi guidance, we’re here to help.