The Science Based Targets initiative (SBTi) recently released an updated version of its Forest Land and Agriculture (FLAG) Guidance, that impacts companies with agricultural operations in their direct control and value chain.
SBTi is a global partnership dedicated to setting the science-based standard for corporate greenhouse gas (GHG) targets, helping organizations align climate action with leading research.
The updated FLAG Guidance includes revised deadlines for companies with existing targets, changes to no-deforestation requirements, and alignment with the Greenhouse Gas Protocol Land Sector and Removals Standard. Below is a high-level overview of the most impactful updates.
Deadline for companies that already had SBTi targets
- Companies that have set a science-based target but do not yet have a FLAG target must now include one during their mandatory five-year review submission. SBTi recommends doing so as soon as possible.
No-deforestation target date
- Companies now must commit to achieving no deforestation no later than two years after FLAG target submission, with an absolute deadline of December 31, 2030.
No-deforestation cut-off date
- The recommended cut-off date is no later than 2020.
- If a later cut-off date is used, it must not exceed three years prior to submission of the company’s first FLAG target.
- Where a 2020 cut-off date is not possible for specific portions of the value chain, this must be disclosed and justified in public documentation, while 2020-or-earlier cut-off dates must be maintained for the remaining portions.
No-deforestation public documentation
- Within 12 months of validating its FLAG target, a company must publish their no-deforestation commitment language on its own website or in relevant self-published policy documents, including methods and key information on how the company plans to deliver on the target.
Companies updating an existing no-deforestation commitment
- Companies with existing FLAG no-deforestation commitments validated under v1.0 or v1.1 are recommended to maintain the existing commitment.
- If a company elects to update its commitment, it must set an updated target within two years of submission of the updated commitment for SBTi validation and no later than December 31, 2028.
- It must also publicly disclose progress achieved against the previous commitment, including relevant barriers and planned actions to address them, and retain the previous cut-off date if it is aligned with the updated criteria.
Alignment with the final GHG Protocol Land Sector and Removals Standard
- SBTi updated the FLAG Guidance to reflect the final GHG Protocol Land Sector and Removals Standard as the accounting reference for companies submitting FLAG targets.
Verification for removals
- Removals that are reported towards a target must align with the GHG Protocol Land Sector and Removals Standards and be data verified by a third-party organization (e.g. certification body, via audit).
Bottom line
The changes above will largely impact food and agriculture companies that have set a science-based target without an existing FLAG and food and agriculture companies that are planning to set a science-based target. If you’re interested in pursuing a science-based target, be sure to understand your company’s underlying motivations that inform its strategy.
For assistance navigating FLAG guidance or building your sustainability strategy, please reach out to a member of Pinion’s sustainability team.
