SBTi FLAG Guidance for Food Companies 2026: What It Is, Who Needs It, and How to Start

If you're in the food industry, there's a good chance you need an SBTi FLAG target. That’s because a large share of emissions in the food industry often comes from farming, land use, and livestock.

These land-based emissions are what the Science Based Targets initiative (SBTi) calls FLAG emissions.

Since 2023, companies in land-intensive sectors like food and agriculture that want to submit a Science Based Target must also include a separate FLAG target. This requirement ensures that land-related emissions and removals are specifically addressed, supporting the Paris Agreement’s 1.5°C goal by making sure these emissions are properly accounted for.

This article explains what SBTi FLAG is, who needs it, how to set your target, and what to expect after submission.

What is SBTi FLAG?

SBTi FLAG is the global standard created by the Science Based Targets initiative (SBTi) for companies in land-intensive sectors like agriculture, forestry, and food production to set targets for reducing and removing land-based greenhouse gas (GHG) emissions.

FLAG stands for Forest, Land, and Agriculture. These are emissions from land and agricultural activities like deforestation, crop production, livestock, fertilizer use, and soil management. They're separate from non-FLAG emissions like transport, packaging, and factory energy use. 

In simple terms:

• FLAG - emissions from agriculture and land use  (e.g. livestock, fertilizer use, deforestation
• Non-FLAG - energy and industrial emissions (e.g. electricity, transport, packaging)

Because land use is central to most food companies’ operations, SBTi requires them to report FLAG emissions separately and set a dedicated FLAG target alongside their regular science-based targets. This separate FLAG approach ensures comprehensive coverage of all greenhouse gas emissions.

Want to understand why FLAG emissions matter and how they differ from non-FLAG? Read this → Integrating FLAG emissions: a critical step for setting SBTi targets

Who needs to set a FLAG target?

Choosing a FLAG target approach 

SBTi offers two ways for companies setting science-based targets. Choose based on your supply chain.

Sector pathway

Use this if your supply chain spans multiple agricultural products.

• Best for: food retailers, large manufacturers, brands with varied portfolios
• Reduction target: about 3% per year

Commodity pathway

Use this if your emissions come mostly from one of these 11 high-impact commodities: Beef, chicken, dairy, maize, palm oil, pork, rice, soy, wheat, leather, timber & wood fiber

• Best for: processors, producers with one or two high-impact inputs
• Reduction target: based on each commodity's mitigation potential

A hybrid approach is possible depending on your product mix. apply the sector pathway across your full scope, and use the commodity pathway for your highest-impact products.

How to Set SBTi Targets

Setting your FLAG target has two layers:

Step 1: Build your FLAG inventory 

Before submitting anything, you'll need to calculate your FLAG emissions and removals using the land sector and removals guidance. This means building a FLAG inventory with:

• Land Use Change (e.g., deforestation)
• Land Management (e.g., fertilizer use, manure, tillage)
• Biogenic Removals (e.g., soil carbon, reforestation)

Good to know: SBTi requires you to report FLAG emissions and removals separately under their land sector and removals framework. You can't subtract removals to lower your reported emissions; reduction and removal must stand on their own. This ensures accurate tracking of both GHG emissions and carbon removals.

Step 2: Submit your target to SBTi 

To complete this FLAG target-setting process, you'll need:

• Your base year with reliable data
• Your near-term FLAG target year (5–10 years from your base year)
• Your baseline FLAG emissions for the base year

Carbon Maps can help you calculate this using its database of over 34,000 emission factors, giving you a more accurate and ingredient-level baseline to work with. This kind of granular data makes your emission reduction goals more achievable.

• Your chosen pathway (sector or commodity)
• Your target boundary, including Scope 1 and Scope 3 FLAG-related emissions
• Any carbon removals being included
• The methodologies and assumptions used

Good to know: The SBTi FLAG target-setting tool helps you set and validate your targets. But to calculate your FLAG emissions, track them over time, and manage ingredient-level data, you’ll need a dedicated platform like Carbon Maps.

What SBTi expects you to report

SBTi has specific FLAG requirements for reporting. You'll need to submit:

• FLAG and non-FLAG emissions separately
• Emissions by type: land use change, land management, removals
• The approach used: sector, commodity, or both
• A deforestation commitment (you must commit to zero deforestation by 2025)

After submission, what happens next?

After you submit a FLAG target:

• SBTi validates your submission
• You must track and report annually
• Data quality should improve over time

Companies often need to:

• Engage suppliers to get better Scope 3 emissions data
• Set up systems to track FLAG vs non-FLAG progress
• Prepare for investor and stakeholder questions

What’s changing with SBTi’s Latest Update (Version 1.2)?

In March 2026, the Science Based Targets initiative (SBTi) released an urgent update to its rules for land and agriculture emissions (known as the FLAG Guidance). If your company buys, sells, or produces food, wood, or agricultural products, here is a simple breakdown of what changed and what it means for your business.

Here are the key changes:

1. More Flexible (But Strict) Deforestation Deadlines

• The Change:
  Previously, companies were required to commit to zero deforestation in their supply chains by the year 2025. The new rule recognizes that this timeline was too tight for many. Now, a company must set its zero-deforestation target date for no later than 2 years after they submit their goals to the SBTi, with a hard cut-off that it cannot be later than December 31, 2030.

• What this means for businesses:
  ‍You have a little more breathing room to map out your supply chains and work with farmers or suppliers to stop deforestation. However, the clock starts ticking the moment you submit your targets, so you still need to act fast.

2. Extensions Require Total Transparency

• The Change:
  If your company already made a pledge to stop deforestation by 2025 under the old rules, but you realize you aren't going to make it, you are allowed to extend your deadline to December 31, 2028 at the latest.
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• What this means for businesses:
  You cannot just quietly push your deadline back. To get an extension, the new rules force businesses to publicly "show their work". You must publish exactly what progress you have made, what roadblocks stopped you from hitting the 2025 goal, and your step-by-step plan to fix the issue. This means stakeholders and customers will have full visibility into your struggles and your solutions.

3. Clearer Rules on Who Must Participate

• The Change:
  The update clarified the specific criteria (known as FLAG-C1) that dictate exactly which companies are required to set these land and agriculture targets.

• What this means for businesses:
  It removes the guesswork. If you are in a heavy land-use sector (like food processing, retail, or paper) or if land-based activities make up more than 20% of your total carbon footprint, it is officially mandatory to set a separate target for these emissions.

4. The Official "Rulebook" for Carbon Math is Here

• The Change:
  Older versions of the guidance relied on a draft version of the rules for calculating emissions. Version 1.2 has been officially updated to align with the finalized 2026 GHG Protocol Land Sector and Removals Standard.
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• What this means for businesses:
  The "draft phase" of carbon accounting is over. Businesses now have a finalized, global standard that tells them exactly how to calculate their carbon emissions from land use, and exactly how to count carbon "removals" (like planting trees or improving soil health). This means your sustainability and data teams now have concrete rules to follow, which should make auditing and reporting much more straightforward.

Navigating these new rules doesn’t have to be overwhelming, platforms like Carbon Maps can help. By leveraging over 34,000 emission factors, the platform provides the accurate, granular data you need to map your supply chain, hit the updated deforestation deadlines, and confidently comply with the finalized SBTi standards.

Ready to make your FLAG reporting easier?

Book a demo with our team

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