The pioneering FLAG Guidance from Science Based Target initiative (SBTi) offers the initial structure for businesses in land-heavy industries to establish scientific targets, encompassing land-related emission constraints and removals. This guidance offers the opportunity for these companies to take significant steps in reducing global greenhouse gas emissions stemming from agriculture, forestry, and other land use, which make up 22% of the earth’s total emissions [1].

What is SBTi’s FLAG?

The Science Based Target Setting Guide for Forest, Land, and Agriculture (FLAG) is the leading global standard designed to help companies in land-intensive sectors set science-based targets (SBTs) for reducing and removing land-based emissions. The SBTi FLAG Guidance offers a rigorous, science-backed framework to guide companies on the necessary scale and speed of emission reductions, aligning with the Paris Agreement‘s goal of limiting global warming to below 1.5°C.

Why is the FLAG Needed?

The impacts of climate change are becoming increasingly severe, with the forest, land, and agriculture (FLAG) sector being one of the hardest hit. This sector is not only vulnerable to climate change but is also a significant contributor to it, accounting for nearly 22% of global greenhouse gas (GHG) emissions, making it the second-largest emitter after the energy sector. Deforestation, unsustainable agricultural practices, and land degradation all contribute to the release of carbon into the atmosphere, further exacerbating the climate crisis.

Currently, more than 410 companies with land-intensive operations have committed to or set emissions reduction targets through the SBTi. Nearly half of these companies are publicly reporting their GHG emissions, demonstrating a growing commitment to transparency and action. However, despite these efforts, few companies include land-based emissions in their targets or disclosures. This is largely due to the previous lack of clear guidance and standardized methodologies for measuring and addressing these emissions—until now [2].

The introduction of FLAG marks a turning point for the industry. For the first time, companies have access to robust, science-based tools to account for and reduce land-related emissions. Addressing these emissions is crucial, not only to keep the 1.5°C global warming limit within reach but also to mitigate risks related to food security and support the global transition to a carbon neural or net-zero future. Cutting land-based emissions will play a key role in averting climate disasters, restoring ecosystems, and promoting sustainable agricultural practices that can feed the growing population while protecting the planet.

FLAG’s Key Requirements

The SBTi FLAG guidance sets out clear requirements for companies, especially in land and agriculture sectors, to align their climate actions with science-based targets that address both emissions and land use. The key requirements are:

• Establish short-term FLAG science-based targets: Businesses must set emissions reduction targets for the next 5 to 10 years that align with the goal of limiting global temperature rise to 1.5°C. These targets ensure timely progress towards meeting global climate goals in sectors like agriculture and land use.
• Incorporate carbon removals into near-term FLAG targets: Companies are required to account for natural methods of carbon sequestration. These include restoration of natural ecosystems, improved forest management, silvopasture (integrating trees with grazing), and increasing soil carbon storage in agricultural lands. This step emphasizes nature-based solutions to offset emissions alongside reductions.
• Set long-term FLAG science-based targets: Organizations with significant land or agriculture-related activities must commit to reducing at least 72% of their emissions by 2050. These long-term goals are set in accordance with the SBTi Net-Zero Standard [3], providing a structured pathway for deeper decarbonization.
• Commit to zero deforestation by 2025: Companies are mandated to eliminate deforestation from their supply chains no later than 2025. This aligns with the Accountability Framework initiative (AFi) [4], ensuring companies address the environmental impacts of land-use changes and halt further forest degradation.
• Set targets for fossil fuel emissions: For companies with land-based emissions, it is also critical to set separate targets addressing fossil fuel emissions alongside their FLAG targets. This requirement ensures that companies address all sources of emissions, both those from land use and from industrial or energy sources, as many businesses contribute to fossil emissions as well.

2 Pathways for FLAG Target Setting

Whole-Sector Approach

The whole-sector approach focuses on reducing emissions from all FLAG-related products and activities across entire sectors. This method emphasizes cutting emissions throughout the forestry, land use, and agriculture industries as a whole, rather than isolating specific commodities.

• Near-term and long-term goals: As mentioned above, targets can be short-term (over the next 5-10 years) or long-term, aiming to achieve a reduction of at least 72% of FLAG emissions by 2050.
• Emissions thresholds: For near-term targets, companies must reduce at least 95% of their Scope 1 and 2 emissions, while Scope 3 targets require a reduction of at least two-thirds of emissions.
• Separate tools for setting targets: Near-term FLAG targets are established using a tool provided by SBTi, while long-term targets, particularly for agriculture, are managed using the “Net-zero tool.”
• Deforestation commitment: Companies that commit to FLAG targets are also pledging to achieve zero deforestation by 2025 at the latest.

Commodity Approach

The commodity approach focuses on addressing emissions from specific high-impact commodities, primarily those with a significant carbon footprint.

• Targeted commodities: This approach focuses on 11 major commodities: beef, chicken, dairy, leather, maize, palm oil, pork, rice, soy, wheat, and timber & wood fiber.
• Flexibility for diverse companies: Companies with a broad range of products, like grocery stores, are encouraged to use the whole-sector approach. However, those with more than 10% of their FLAG emissions in a single commodity, such as retailers or food and beverage producers, can use the commodity approach.
• Types of targets: Commodity targets can either be absolute or intensity-based.

How to Set a FLAG Target

Setting a FLAG target involves a structured approach that aligns with the SBTi guidelines and focuses on both immediate and long-term actions. Here are the recommended steps:

1. Conduct a Comprehensive Emissions Inventory: The first step is to evaluate and compile a detailed inventory of all emissions related to a company’s operations and supply chains, including Scope 1, 2, and 3 emissions. This baseline assessment is crucial for identifying major emission sources and understanding the full climate impact.
2. Choose Between Whole-Sector or Commodity Approach: Depending on the company’s activities and the composition of its FLAG emissions, the organization should opt for either the whole-sector approach or the commodity approach. This decision should be driven by the product portfolio and the relative impact of specific commodities on the company’s overall emissions profile.
3. Set Near-term and Long-term Targets: Establish both near-term (5 to 10 years) and long-term (up to 2050) science-based targets that comply with the SBTi FLAG requirements. This includes setting precise percentage reductions and formulating strategies for achieving zero deforestation.
4. Incorporate Carbon Removals and Nature-Based Solutions: Integrate strategies for enhancing natural carbon sequestration through measures like reforestation, soil carbon enhancement, and sustainable land management. These nature-based solutions play a significant role in balancing out emissions that cannot be completely eliminated.
5. Engage Stakeholders and Build Internal Capacity: Effective FLAG target setting and implementation require the engagement of stakeholders across the organization, including management, operational teams, and supply chain partners. Companies must also build internal capacity to support sustainable practices that align with their FLAG commitments.
6. Monitor Progress and Report Transparently: Regularly monitor progress towards meeting FLAG targets and report on achievements with transparency. This not only demonstrates accountability but also builds trust with stakeholders and investors. Align reporting with recognized frameworks to ensure clarity and comparability.

By following these steps, companies can effectively set and achieve FLAG targets, contributing to global efforts to mitigate climate change and promote sustainable development within the land and agriculture sectors.

Conclusion

In summary, setting and achieving FLAG targets is a pivotal step in the battle against climate change, particularly within sectors heavily reliant on forestry, land use, and agriculture. By embracing strategies that prioritize sustainable practices, businesses not only contribute to global environmental goals but also strengthen their resilience and competitiveness in a rapidly evolving market. Proactive engagement in this transition is key, ensuring that companies are not only compliant with emerging regulations but are also leading the charge in driving positive change for a sustainable future.

References:

[1] https://sciencebasedtargets.org/sectors/forest-land-and-agriculture

[2] https://sciencebasedtargets.org/resources/files/SBTi-FLAG-2-pager.pdf

[3] https://sciencebasedtargets.org/net-zero

[4] https://accountability-framework.org/use-the-accountability-framework/core-principles/