Climate
SBTi FLAG Guidance
Definition
The SBTi Forest, Land and Agriculture (FLAG) Guidance, launched in 2022 as the SBTi's first sector-specific methodology, defines requirements and pathways for companies to set science-based targets covering land-management emissions, land-use-change emissions and biogenic CO₂ removals. It is mandatory for food, beverage, tobacco and forestry-sector companies, and for any company whose FLAG emissions exceed 20% of its total scope 1–3 emissions.
References
Scope, mandatory thresholds, five key requirements, 72% long-term reduction
V1.2 updates, no-deforestation deadlines, GHG Protocol alignment
Overview
What it means
Land-sector emissions behave differently from fossil emissions — they include both sources and removals and carry high measurement uncertainty — so FLAG requires them to be targeted separately from energy/industry ("non-FLAG") targets; land-based removals may count only against FLAG targets.
Requirements include near-term (5–10 year) targets, a long-term target of at least 72% reduction by 2050, and a mandatory no-deforestation commitment with a 2020-or-earlier cut-off date. Version 1.
2 (2026) allows first-time setters up to two years after submission to eliminate deforestation, with an absolute deadline of 31 December 2030, and aligns the guidance with the GHG Protocol Land Sector and Removals Standard.
How it is used
Companies submit FLAG and non-FLAG targets together for SBTi validation, using commodity or sector pathways and physical activity data (hectares, volumes) rather than spend-based estimates.
Why it matters
Land use drives roughly a fifth of global emissions; FLAG is the main mechanism translating that into enforceable corporate targets.