Greenhouse gas (GHG) emissions from the Forest, Land and Agriculture (FLAG) sector contribute to almost 25% of the global GHG footprint. It is imperative, therefore, to mitigate FLAG emissions to avoid exceeding 1.5°C in global temperatures above pre-industrial levels—the Paris Agreement goal. The Science Based Targets initiative (SBTi) released its Forest, Land and Agriculture (FLAG) guidance in September 2022 with minor updates published on December 15, 2023.
Companies in a FLAG-related sector or with FLAG-related emissions that account for more than 20% of their Scope 1, 2, and 3 emissions will need to set FLAG Science-Based Targets. Thousands of companies that plan to set or have already set a science-based target are potentially affected. Within 12 months of the FLAG Guidance release, more than 10 companies had successfully submitted their FLAG targets, which were validated by SBTi.
This article explains who will need to set FLAG Science-Based Targets, and how to prepare for SBTi’s new FLAG guidance. Click the button below to download our quick start guide:
The Science Based Targets initiative (SBTi) was launched in 2015 to drive climate action in the private sector. It does so by endorsing science-backed practices in emissions reductions and net-zero targets, while providing technical support, independent assessment, and target validation to companies setting science-based targets (SBTs).
SBTs are designed to align corporate actions with the necessary emissions reductions to limit global warming from exceeding 1.5°C above pre-industrial temperatures—a central goal of the Paris Agreement. This will require halving greenhouse gas (GHG) emissions by 2030 and achieving net zero by 2050.
Approaches to setting science-based targets vary, but all businesses follow a similar five-step process:
Joining the SBTi offers companies key benefits for long-term success and sustainability:
Participation in the SBTi positions companies as responsible, forward-thinking leaders, contributing to both environmental sustainability and business resilience.
Agriculture, forestry and other land use contribute to 24% of global GHG emissions, with deforestation alone accounting for over 10% of annual carbon emissions. Therefore, tracking and mitigating FLAG emissions is vital to reaching global climate goals and avoiding the most catastrophic impacts of climate change.
The FLAG sector is significantly affected by the increasingly devastating impacts of climate change. However, companies in the agriculture sector and other land-intensive sectors are well-positioned to mitigate these climate risks by leveraging SBTi targets and pathways in their fight against climate change.
Note: Even if your company is not required to set a FLAG target, Scope 3 land-based emissions must be accounted for and potentially disaggregated in your baseline and target coverage.
FLAG Targets required
The following sectors will need to set a FLAG target:
OR
FLAG Targets recommended
FLAG Targets not required
If you choose not to set a FLAG target, you will still need to include FLAG-related emissions in the overall target boundary with the other energy/industry non-FLAG targets. FLAG removals (see Carbon Removals section below) cannot be included in the overall target if it is not a FLAG target.
Setting a FLAG target will need to cover at least 95% of your FLAG-related Scope 1 emissions and 67% of FLAG-related Scope 3 emissions. Target coverage for FLAG Scope 1 and 3 must be met separately.
The SBTi provides two approaches for setting FLAG targets. Both approaches cover the following mitigation actions: reduce land use change (LUC), improve agriculture, shift diets, reduce food loss and waste, restore forests, improve sustainable forest management (SFM) and agroforestry, and enhance agriculture soil carbon.
FLAG sector approach
It covers all sectors.
Commodity-based approach
It contains 11 mitigation pathways for specific commodities in 26 regions with major carbon footprints, i.e., beef, chicken, dairy, leather, maize, palm oil, pork, rice, soy, wheat, and timber and wood fiber.
Companies can also combine commodity and sector pathways for an aggregated FLAG target. If multiple pathways are aggregated into a single emissions reduction target, companies will need to meet both their sub-targets and their aggregated FLAG target.
Land use change (LUC) CO2 emissions
All emissions from land use change including:
Land management (non-LUC) emissions
All emissions (biogenic CO2, CH4, and N20) from land management activities including:
Carbon removals & storage
Carbon removal activities including:
These removals are not considered “offsets” because they enhance carbon sinks while also reducing emissions. They can contribute up to 37% of the target mitigation through 2030, and up to 20% by 2050. Removals outside supply chain activities are offsets, and not included in FLAG.
Stopping deforestation has the potential to mitigate 80% of emissions from land use change. Along with setting a FLAG target that includes all land-related emissions, companies are also required to make a no-deforestation commitment with a target day for when they intend to have fully implemented their commitment/policy. The target date must be no later than December 31, 2025.
The SBTi recommends aligning no-deforestation commitments with the Accountability Framework Institute (Afi) definitions and guidance.
Once you determine that you must set a FLAG target (see “Who will be impacted?” for criteria), you will need to either submit your first near-term energy/industrial target, or update your existing near-term target, along with your near-term FLAG target. You also have a choice about whether you want to add a long-term net-zero target.
You will need to commit to reduction targets over a chosen period of time for your near-term targets and net-zero (long-term) targets using the SBTi FLAG Tool. The commitment statements below provide sample percent reductions and timelines that your company will need to adjust after completing the FLAG tool.
| Target type | Base year | Target year | Company commitment |
| Near-term submission: FLAG target(s) | The most recent base year for when data is available. (For base years earlier than 2018, contact SBTi for backcasting.) | Typically 5-10 years after target submission date | Reduce Scope 1 and 3 FLAG GHG emissions by 30.3% over 10 years starting at your base year*. No deforestation across your primary deforestation-linked commodities with a target date of FY2025. |
| Net-zero submission: FLAG long-term target(s) (Must already have an approved near-term SBT to be eligible) | The same base year as the near-term target. | 2050 at the latest | Reduce Scope 1 and 3 FLAG GHG emissions by 72% from base year to target year—typically from 2020 to 2050 or earlier*. |
The SBTi and the GHG Protocol are aligning their approaches and timelines for land-based emissions accounting and targets.
Based on the targets you are setting, the table below summarizes the documents and tools required for submission. Note that FLAG targets cannot be submitted individually; companies with a validated target must also submit a near-term target update.
| Documents to submit | Tools to submit | ||||
| Targets that you are setting | FLAG Annex | Corporate Target Submission Form | FLAG Target-Setting Tool | Corporate Near-Term Tool | Corporate Net-Zero Tool |
| FLAG target + Near-term target update | x | x | x | x | |
| FLAG target + Near-term target update + Net-zero target | x | x | x | x | x |
| FLAG target + Near-term target | x | x | x | x | |
| FLAG target + Near-term target + Net-zero target | x | x | x | x | x |
If you already have a science-based target, you will need to adjust it according to the new FLAG guidance. Here are a few steps for adding a FLAG target to your existing science-based target:
Aligned Incentives offers a strategic approach to help companies evaluate, set, and track an SBTi FLAG target, providing new carbon accounting and mitigation opportunities. By leveraging Aligned Incentives’ expertise, you can effectively integrate FLAG targets into your broader sustainability goals, ensuring that your land use strategies are both environmentally beneficial and economically viable.
