Agriculture, forestry, and other land use (AFOLU) generate nearly 22% of global greenhouse gas emissions. For consumer packaged goods (CPG), food and beverage, apparel, and forestry multinationals, land-sector emissions often exceed 80% of total Scope 3 footprints. The SBTi Forest, Land and Agriculture (FLAG) Guidance establishes the world’s first standardized framework for companies to set science-based targets covering biogenic GHG emissions and removals.

Core SBTi FLAG Mandate

Companies with land-intensive activities accounting for 20% or more of their total emissions across Scopes 1, 2, and 3 must set a dedicated FLAG target separate from their energy/industry target. FLAG targets require a minimum 3.03% annual linear reduction for sector-wide pathways (72% total reduction by 2050), a strict zero-deforestation commitment with a target date no later than December 31, 2025, and direct carbon removal accounting restricted strictly to on-farm land boundaries.

1. Accounting Boundary: Land-Use Change vs. Land Management

SBTi FLAG breaks emissions down into three distinct operational layers: Land-Use Change (LUC), Land Management Emissions, and Biogenic Carbon Removals through soil organic carbon sequestration.

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2. Deforestation-Free Verification & EUDR Alignment

Setting a FLAG target requires verifiable proof of supply chain traceability aligned with the EU Deforestation Regulation (Regulation (EU) 2023/1115). Companies must capture polygon GPS coordinates for all farm plots sourcing palm oil, soy, beef, cocoa, coffee, and timber.

3. Standards & References

  • Science Based Targets initiative (SBTi): Forest, Land and Agriculture (FLAG) Target-Setting Guidance (v1.1, 2023).
  • GHG Protocol: Land Sector and Removals Guidance.
  • European Union: Regulation (EU) 2023/1115 on Deforestation-free Products (EUDR).

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Peer-Reviewed Scientific Authority

Dr. Ahmad Mahmood, Ph.D.

Assistant Professor & Environmental Systems Specialist. PhD in Integrated Environmental Systems (University of Yamanashi, Japan), MS in Sustainable Resource Management (Technical University of Munich / TUM, Germany).

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