Inside SBTi’s Forest, Land & Agriculture (FLAG) Framework

In 2022, the Science Based Targets initiative (SBTi) introduced its guidance on Forest, Land and Agriculture (FLAG) reporting. 

FLAG is designed to be a framework that helps businesses reduce their land-based greenhouse gas (GHG) emissions.

All in all, the FLAG sector is responsible for almost a quarter of global emissions, but climate experts believe it has long been overlooked in corporate sustainability strategies. 

Now, in February 2025, the SBTi has published its FLAG Guidance in Brief - a more concise set of guidelines for compliance in the sector, published with the aim of boosting engagement.

This guidance sets clear requirements for businesses operating in land-intensive sectors, like farming, and compels them to take immediate action on deforestation, land-use change and carbon removals.

A science-based approach to land-sector emissions

As with all regulatory frameworks, the devil is in the detail when it comes to FLAG. So, what exactly does FLAG mandate? 

In order to achieve compliance, FLAG requires businesses to include deforestation, land conversion and land-use activities such as fertiliser use, manure management and forest harvesting in their climate targets. 

Additionally, companies must also incorporate biogenic carbon removals, including reforestation, soil carbon sequestration and improved forest management, into their overall mitigation strategies.

Martha Stevenson, Senior Advisor at SBTi and Senior Director at WWF US, highlights the importance of this shift.

“This sector contributes 22% to global emissions every year,” she explains. 

“That’s a huge chunk of emissions that has not been included in corporate accounting or mitigation actions to date.”

Crucially, the initiative requires the submission of near-term targets spanning five to ten years and long-term commitments to reduce FLAG emissions by at least 72% by 2050.

Companies that want to have their targets ratified must adopt a no-deforestation policy, with a target date no later than 2025. 

Which companies is FLAG aimed at?

Put simply, companies in forestry, agriculture, food processing, food retail and tobacco are now required to establish FLAG science-based targets. 

However, the guidance extends beyond these sectors. If a business’s FLAG-related emissions exceed 20% of its total Scope 1, 2 and 3 emissions, it must also comply.

The move is expected to have significant implications for supply chain management, as many companies will need to reassess their procurement strategies. 

Saif Hameed, CEO and Founder of Altruistiq, explains the complexity involved in FLAG reporting compared to standard Scope 3 emissions accounting. 

“What makes FLAG different to how you would measure Scope emissions ordinarily, is that FLAG requires you to get into weights, activities and locations,” he says.

“I can do a compliant Scope 3 calculation using primarily spend-based data. Even if I want to refine that a bit I’ll go down to the region-specific spend-based emissions factors,” he continues.

“But I really don’t need to get into the weeds on activities and practices and so on.”

Essentially, FLAG’s approach to reporting gives companies and governing bodies a more nuanced dataset, which is useful in targeting specific areas to decarbonise.

An industry shift towards accountability

The SBTi’s guidance is expected to accelerate industry-wide changes, compelling companies to reconsider their land-use impacts. 

By setting stringent FLAG requirements alongside existing energy and industry targets, the framework ensures a more comprehensive approach to corporate climate action.

However, the guidance also introduces significant challenges. Many businesses are likely to struggle with data collection and target-setting, particularly those with complex, multi-tiered supply chains. 

The guidance requires companies to separate FLAG-related emissions from energy and industrial emissions, ensuring they set distinct reduction targets for each category.

What's next for FLAG and the SBTi?

The FLAG Guidance is part of a broader push to align corporate sustainability efforts with global climate targets. 

While some companies have already begun integrating land-based emissions into their strategies, the mandatory nature of these targets will drive wider adoption.

As businesses navigate these new requirements, they will need to develop more sophisticated tracking and reporting mechanisms. 

Transparency and accountability will be key, particularly in demonstrating progress towards emissions reductions and carbon removals.

Stephen Mackenzie, formerly of WRAP (a British charity focused on food waste), has been recruited as Lead of FLAG at the SBTi and will oversee the framework's progress.

“The forest, land, and agriculture (FLAG) sector has massive potential to tackle the devastating impacts of climate change," Stephen says.

"And while it is a high-emitting sector it is also one of the most exposed to those impacts.

"Setting science-based targets in line with SBTi FLAG Guidance not only indicates that companies are driving the net zero transition but that they’re helping ecosystems thrive, ensuring food systems are resilient and preserving the very land on which their businesses depend.” 

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