Food Giants Scale Back Net Zero Pledges

Meat giant JBS has removed its 2040 net zero target, sparking criticism from environmental groups. The world's largest beef and poultry producer made the change in its latest sustainability report, also omitting specific reduction goals for its Scope 3 emissions.

Charities and NGOs accused JBS of a track record of "shirking corporate transparency and peddling empty promises." The company insists it is not abandoning sustainability but is strengthening its framework to reflect the "immense" challenge of cutting carbon from an $86.2 billion agricultural business. JBS is not alone. A number of leading food firms have quietly adjusted the ambitious environmental pledges they made earlier this decade.

Major Companies Revise Targets

JBS may be unusual in completely dropping its net zero goal, but other firms have scaled back. In May 2025, PepsiCo revised key climate, water, and packaging commitments. Its net zero target was pushed from 2040 to "2050 or sooner." The company also changed its Scope 1 emissions goal.

PepsiCo's chief sustainability officer, Jim Andrew, cited a lack of infrastructure and regulatory support. "We can advocate, we can collaborate, we can work to try and move forward," he said. "But there's only so much that we can do."

Also in 2025, UK supermarket Morrisons postponed its net zero target by 15 years to 2050, though it expanded the commitment's scope to cover the entire supply chain. In October of the same year, Nestlé left the Dairy Methane Action Alliance without specifying reasons.

Lindsay Groves, a senior consultant at Consultus Sustainability, says quiet scaling back is becoming more common. "Companies in that position need to show that they are doing everything reasonably possible to reduce emissions," she warns. Moves by large firms like JBS risk signalling that climate commitments are optional.

The Execution Challenge

Experts say many headline commitments were set before companies fully understood their carbon footprints or the operational changes required. George Wade, CCO at carbon platform Zevero, notes this is especially true for food and drink, where Scope 3 supply chain emissions can represent up to 99% of a company's total footprint.

JBS faced legal action over its net zero plans prior to shelving the goal. Its chief sustainability officer, Jason Weller, stated in July that executing the plan across a vast, fragmented global supply chain was an "immense challenge." Similarly, when Coca-Cola scaled back packaging targets in 2024, it cited challenges with cost, quality, and scaling recycled materials.

PepsiCo said its revised framework, guided by four years of learnings since launching its Pep+ strategy, is designed for the long term. Chairman and CEO Ramon Laguarta stated, "Our goals must evolve with us to keep our ambition and to deliver on our long-term vision."

Inflation, capital demands, political uncertainty, and poor supplier data have compounded these execution issues. Polly Milne, COO at ESG platform FuturePlus, adds that new EU regulations on deforestation and packaging are creating a strong incentive for companies to reassess their environmental claims.

A Shift in Focus

Despite these rollbacks, sustainability remains a commercial priority. The sector is becoming more selective rather than uniformly less ambitious, according to analysts. "We've certainly seen a retreat by some larger F&B companies away from headline-grabbing ESG promises," says Polly Milne. "But on the flip side, we're seeing this combined with an increased focus on measurable, material and operational priorities."

This year, Carlsberg updated its ESG programme with a new goal to reduce absolute carbon emissions and targets for employee inclusion. Danone laid out new goals in April, including plans to source 45% of its ingredients from farms using regenerative practices by 2030. Orr Vinegold, co-founder of impact accelerator Unrest, argues that while political and investor enthusiasm may waver, consumer demand remains the more important force.