Should You Be Accounting for FLAG Emissions?

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It has been eight years since The Science Based Targets initiative (SBTi) was launched in 2015, and yet the Forest, Land and Agriculture (FLAG) sector is just starting to see methodology produced for these land-intensive companies and operations. Late to the game or not, SBTi has released the world’s first standard method for setting science-based targets that are inclusive of land-based emission reductions and removals. FLAG accounts for just under a quarter (22%) of greenhouse gas (GHG) emissions around the globe, making it the second-largest emitting sector (after Energy).

FLAG Science-Based Target Criteria

Within SBTi, there are two criteria under which a company is required to set a FLAG science-based target:

  1. Companies with land-intensive activities in their value chain from the following sectors:

    • Forest and Paper Products – Forestry, Timber, Pulp and Paper

    • Food Production – Agricultural Production

    • Food Production – Animal Source

    • Food and Beverage Processing

    • Food and Staples Retailing

    • Tobacco

  2. Companies in other sectors with FLAG emissions >20% of total Scope 1, 2, and 3 emissions.

When will companies be required to set FLAG science-based targets?

FLAG SBTi targets will be officially required this month (April 2023) dependent upon the release of the GHG Protocol final draft.

FLAG full timeline:

FLAG Guidance

The SBTi’s FLAG guidance along with the GHG Protocol’s Land Sector and Removals guidance have been working hand in hand to bridge the gap within the land emissions sector. This updated FLAG guidance and corresponding FLAG targets are separate from non-FLAG targets, which will continue to use the existing SBTi guidance and methods.

It is important to note, biogenic removals are included in the new FLAG guidance, as they present over 50% of mitigation opportunities.

FLAG Target Approaches

When moving forward with setting a FLAG target, there are two approaches, both of which will need to cover a 5-10 year timeline:

  1. Sector Approach

    • This approach is for companies with diversified emissions or emissions resulting from direct production.

  2. Commodity Approach

    • This approach is for companies with specific and focused commodity emissions.

      • Beef, chicken, dairy, leather, maize, palm oil, pork, rice, soy, wheat, timber & wood fiber

      • Companies with timber & wood fiber emissions >10% of total FLAG emissions are required to use the timber & wood fiber-specific commodity approach.

Both approaches can be consolidated into one combined, absolute FLAG target using SBTi’s aggregator tool. In addition, both approaches require a zero-deforestation commitment throughout the SBT target period with a target date no later than 2025.

How about the companies which have some FLAG emissions, but not enough to meet the 20% requirement? Once again, there are two options that a company may choose:

  1. Set a separate FLAG target

    • This is the only way FLAG removals can be accounted for.

  2. Include FLAG-related emissions with its energy/non-FLAG emissions and targets

    • No FLAG removals can be included if this option is chosen.

What type of FLAG submission will my company need?

The flow chart below released by SBTi is an informative tool to help determine which submission type your company will need in order to incorporate the newly created FLAG requirements.

If you need help assessing how the SBTi FLAG guidance will affect your company or assistance setting science-based targets, KERAMIDA’s team of experienced Sustainability and Climate professionals can help. To speak with one of our experts, please contact us or call (800) 508-8034 today.

Author

Maddy Osswald, MBA
Senior Sustainability Analyst
KERAMIDA Inc.

Contact Maddy at mosswald@keramida.com

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