What consumer brands need to know about SBTi's new net zero standard (V2)

The Science Based Targets initiative (SBTi) just released Version 2 of its Corporate Net-Zero Standard—the global framework for cutting emissions aligned with 1.5℃ science. For consumer brands and shoppers, these updates change how net zero gets measured, reported, and communicated.

Let's break down what's new, why it matters for retail and how consumers can read between the lines when brands talk climate.

3 key changes in SBTi V2 that impact consumer brands

1. Scope 3 targets are now mandatory (for most brands)

Apparel, food & beverage, and retail brands typically have 80–95% Scope 3 emissions (manufacturing, packaging, shipping). V2 forces head-on supply chain action.

2. Separate targets for Scope 1, 2, and 3

Consumers will see more granular data—manufacturing vs. shipping vs. store emissions.

3. Mandatory transition plans + annual reporting

• Publish climate transition plan within 12 months of validation

• Annual reporting for material Scope 3; full report every 3 years

• Limited assurance (third-party verification) required

Less room for vague claims. Brands must show concrete steps and progress data.

What consumers should watch for

The messaging shift: Environmental → Resilience

61% of companies reframing climate messaging toward resilience, risk mitigation, and preparedness due to political skepticism.

But 78% will continue net zero regardless of politics because "it's good for business". 69% increased net zero action over the past 12 months.

What this means: Brands may say "business resilience" instead of "climate action"—but emissions cuts are still happening.

Trust signals for credible messaging

Red flags: "Carbon neutral by 2030" without transition plan or verification.

Green flags: SBTi-validated targets, published transition plans, Scope 3 data with supplier goals.

📅 Timeline: When V2 becomes mandatory

Where Earthmark comes in

At Earthmark, we build AI-powered environmental data platforms making climate action visible, comparable, actionable. SBTi V2's stricter reporting means:

1. More standardized data = easier retailer benchmarking

2. Scope 3 transparency = consumers compare supply chain emissions

3. Mandatory transition plans = brands show concrete decarbonization steps

This regulatory clarity makes ESG benchmarking work at scale.

Quick takeaways

For consumer brands:

✅ Set Scope 3 targets for all ≥5% categories

✅ Publish transition plan within 12 months

✅ Engage 100% of Tier 1 suppliers by 2030

✅ Report annually on material Scope 3

For consumers:

🔍 Look for SBTi-validated targets (not just "carbon neutral")

🔍 Check for published transition plans with timelines

🔍 Trust data-backed messaging over vague promises

🔍 "Resilience" language still means emissions cuts happening

Want to benchmark your favourite brands' environmental data? Earthmark makes corporate climate transparency accessible. Get started →

Sources: SBTi, Real Economy Progress, UNFCCC, Ramboll, Latham & Watkins LLP, Seismic Change, ESG Dive, Climate Advocacy Lab, Carbon Maps