SBTi FLAG targets: how to tackle land-based emissions

What are FLAG emissions?

FLAG emissions (Forest, Land, and Agriculture) are greenhouse gas emissions resulting from forestry, agriculture, and land use activities. This includes deforestation, livestock farming, land use, and changes in land use.

FLAG emissions cover emissions from:

• Land use change: This refers to the conversion of natural ecosystems, such as forests, wetlands, and grasslands, into other land uses, primarily for agriculture, pasture, or urban development.

• Land management: The practices used to manage existing agricultural or forested lands without changing their fundamental use. It includes crop cultivation, livestock rearing, and forest conservation.

• Carbon removals & storage: Natural and technological solutions that remove carbon dioxide from the atmosphere and store it. Either in vegetation, soils, or engineered systems.

Source: SBTi FLAG Guidance

Recent standards have been developed, such as the Land Sector and Removals Guidance (LSRG) from the GHG Protocol and the FLAG SBTi Standard from the Science-Based Targets initiative (SBTi). These enable companies to better map FLAG emissions and set specific reduction targets.

• The Land Sector and Removals Guidance (LSRG) from the GHG Protocol explains how companies must account for and report the land emissions and removals in their GHG inventory. It provides a framework to account for emissions from land use change, land management, carbon removals and storage, as well as biogenic products.

• The FLAG SBTi Standard from the Science Based Targets initiative (SBTi) sets ground rules for target setting.

Which companies need to set FLAG targets?

SBTi requires companies to set FLAG targets from April 30, 2023, onwards if they meet one of the 2 criteria:

1. Companies from the following FLAG-designated sectors:

• Forest and Paper Products – forestry, timber, pulp and paper, rubber

• Food production: agricultural production

• Food production: animal source

• Food and beverage processing

• Food and staples retailing

• Tobacco

2. Companies in any other sector with FLAG-related emissions that amount to 20% or more of overall emissions across scopes 1, 2 & 3.

How does it work?

In addition to the industry Scope 1, 2 and 3 SBTi target, the companies mentioned above are required to set a FLAG target. SBTi offers two pathways for FLAG targets with an ambition of 1,5°C:

1. FLAG Sector pathway for demand-side actors (e.g. consumers, governments, corporations, retailers)

• Near-term target: 30,3% by 2030 (or 3,03%/year)

2. Commodity Intensity pathway for supply-side actors (e.g. farmers, landowners, forestry companies)

• Near-term target: relative target per ton of product

• There are specific requirements dependent on the commodity

To set a SBTi-FLAG target, the first requirement is to make the split between industry greenhouse gas (GHG) emissions and land-related GHG emissions (=FLAG emissions). This allows companies to determine the FLAG emissions coverage for setting SBTi-FLAG targets. Secondly, the FLAG-SBTi standard requires companies to report the emissions split between land management, land use change and removals.

In addition, SBTi asks companies to set a no-deforestation commitment with a target year no later than 2025. Finally, companies undergo a similar auditing and validation process as for the general SBTi target.

Challenges and opportunities related to FLAG emissions

As transparency and sustainability become top priorities for companies and investors alike, there is increasing pressure to make emissions from forestry, agriculture, and land use (FLAG) visible and accountable. Measuring FLAG emissions is a vital step toward credible climate action and long-term business resilience.

However, challenges remain, notably the complexity of collecting accurate land-based emissions data, especially from suppliers, and the difficulty of integrating land-use changes into existing GHG emission accounting systems. By using our partner tool Carbon+Alt+Delete,  you can automate the split between FLAG emissions.

Despite these hurdles, significant opportunities emerge: addressing FLAG emissions can enhance biodiversity and improve soil health through carbon storage and climate restoration. It also allows for building consumer trust through higher transparency.