SBTi FLAG Guidance for Food Companies: 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.

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 net-zero standard?

If you’re preparing your FLAG targets in 2025 or beyond, it’s worth knowing that SBTi is updating its broader Net-Zero Standard. The new Version 2.0, currently in draft, includes changes that directly affect food companies, especially those with land-based emissions or large Scope 3 footprints.

Here are the key changes:

• Stricter Scope 3 requirements: Food companies will need to improve how they track and reduce emissions across their supply chain, especially for purchased goods and farming-related inputs. New options like revenue-linked or supplier-based targets are being introduced.
  
  
• Mandatory carbon removals: For residual Scope 1 emissions (like manure or fertilizer-related emissions that can’t be fully eliminated), companies must set separate carbon removal targets with clear milestones.
  
  
• Separate Scope 1 and 2 targets: If you’ve previously bundled them, that won’t be allowed anymore. Food manufacturers and processors will need distinct targets for direct operations and electricity use.
  
  
• Transition plans required: Large companies will need to publish a clear plan showing how they'll meet their emissions targets over time. SBTi will assess progress and expect regular updates, not just a one-time commitment.
  

• Carbon credits won’t count toward reductions: Companies must cut emissions through actual changes in their operations or supply chain. Offsets like carbon credits (e.g. paying to plant trees or protect forests) can only be used for small residual emissions, not to meet reduction targets.

These updates are still in draft and expected to become mandatory for new targets starting in 2026–2027. If you’re setting your targets now, you’ll follow the current FLAG and Net-Zero guidelines (V1.2), but it’s smart to start preparing for upcoming changes.

Carbon Maps helps companies in the food industry calculate and report their SBTi FLAG emissions, down to the product or ingredient level, in line with SBTi requirements.

Ready to make your FLAG reporting easier?

Book a demo with our team

‍