FLAG and SBTi land sector targets explained

The FLAG (Forest, Land and Agriculture) guidance from the Science Based Targets initiative (SBTi) is the framework that lets companies with land-based activity set climate targets covering land emissions and carbon removals. It emerged because conventional targets left out a huge share of the impact of farming, livestock and forestry, and it is now the reference for decarbonising food chains.

In short: FLAG requires companies in land-intensive sectors to account for and reduce three types of emissions that classic targets ignored (land-use change, land management and removals), plus a zero-deforestation commitment. It is set separately from, but alongside, energy and industry emissions targets.

What FLAG guidance is

FLAG is an SBTi methodological guidance so companies with significant land-related emissions can set science-based targets specific to that sector. It was first published in 2022 and has evolved since; version 1.2, from March 2026, clarified the no-deforestation requirements and aligned the guidance with the GHG Protocol land sector and removals standard.

The logic is that land emissions differ in nature from those of a factory: they depend on biological processes, include gases such as methane and nitrous oxide and, unlike other sectors, offer the chance to remove carbon from the atmosphere through vegetation and soil. That is why they need their own target.

Which sectors it covers

FLAG is mandatory for companies whose activity generates a relevant share of land emissions. In practice, the SBTi requires a FLAG target from companies in these sectors:

• Food production, both crops and livestock.
• Food and beverage processing.
• Food and staples retailing.
• Tobacco.
• Any company in another sector whose FLAG emissions exceed 20% of its total scope 1, 2 and 3 emissions.

These companies must set two separate targets: a FLAG target for land emissions and a conventional one (called energy and industry) for the rest. Both are validated by the SBTi.

How FLAG targets are set

A FLAG target covers categories the traditional inventory used to leave out. It relies on the GHG Protocol (Greenhouse Gas Protocol) and, specifically, must align with the new land sector and removals standard.

Emissions and removals it includes

Including carbon removals is one of the big novelties: for the first time, a corporate climate target can recognise the carbon that agricultural and forestry practices remove from the atmosphere, as long as it is real and verifiable. These removals connect with the role of natural carbon sinks.

Near-term and net-zero targets

As in the rest of the SBTi, companies set near-term targets (5 to 10 years) and long-term net-zero emissions targets consistent with the SBTi Net-Zero Standard. The FLAG target fits into that architecture to cover the land part.

The zero-deforestation requirement

FLAG's most demanding pillar is the zero-deforestation commitment, aligned with the Accountability Framework initiative (AFi). It is mandatory: without it, a company cannot set FLAG targets, and it has to cover the deforestation-linked commodities in its supply chain.

The cutoff date must be 2020 or earlier and, in any case, no later than three years before the company submits its first FLAG targets for SBTi validation. In other words, the company must show its supply chains do not come from land deforested after that date. It is a strict requirement because land-use change is one of the largest sources of food-system emissions.

Relationship with the GHG Protocol Land Sector

FLAG targets must align with the GHG Protocol Land Sector and Removals Standard, published on 30 January 2026 and effective 1 January 2027. This standard defines how to account for land-use-change emissions, land management emissions and CO2 removals, and its version 1.0 applies to agriculture and CO2 removal technologies. At Manglai we analysed it in detail in the article on the new GHG Protocol standard for the agri sector and CO2 removals. If your company has not started with the SBTi yet, the guide on how to set decarbonisation targets aligned with the Paris Agreement is a good starting point.

Why FLAG matters for your company

For a food, beverage or forest products company, setting FLAG targets has stopped being optional in practice. More and more customers, investors and lenders ask for SBTi-validated targets as proof of a credible climate strategy, and the land part is precisely the one under most scrutiny, because that is where the bulk of the impact sits and where deforestation risk is most visible.

Complying with FLAG forces you to know the agricultural supply chain in depth: where each raw material comes from, under what conditions it is grown and what emissions and removals it carries. Beyond the climate target, that knowledge reduces reputational and supply risk, anticipates regulatory demands such as zero deforestation, and helps identify the suppliers with the best practices. In other words, a well-built FLAG target decarbonises and also strengthens the resilience of the business.

The steps to set a FLAG target

The process follows a clear sequence: first the land emissions inventory is calculated separately from the rest; then you check whether the threshold that triggers a FLAG target is exceeded; next you set near-term and net-zero targets, take on the no-deforestation commitment with its cutoff date and, finally, submit everything to the SBTi for validation. From there, the company reports its progress periodically.

Frequently asked questions

Which companies must set a FLAG target?

Those in food production, food and beverage processing, food and staples retailing, and tobacco. In addition, any company in another sector whose FLAG emissions exceed 20% of its total scope 1, 2 and 3 emissions.

How does FLAG differ from a normal SBTi target?

A FLAG target covers land emissions (land-use change, management and removals) that the conventional energy and industry target does not include. Affected companies must set both separately.

What does the zero-deforestation commitment require?

It is mandatory in order to set FLAG targets and it follows the Accountability Framework initiative. The cutoff date must be 2020 or earlier and never later than three years before the first targets are submitted for validation.

Set and track your land targets with Manglai

Accounting for land emissions and removals with the rigour FLAG demands requires supply-chain traceability and solid product data. Manglai helps you measure the product footprint of your agricultural raw materials and structure the data you need to set SBTi-aligned targets and respond to your clients.