Which companies need to set a FLAG target?
The SBTi requires companies to set a FLAG target when they meet either of the following two criteria:
a) The company falls within the below FLAG-designated sectors:
- Forest and Paper Products–Forestry, Timber, Pulp and Paper, Rubber.
- Food Production–Agricultural Production.
- Food Production–Animal Source.
- Food and Beverage Processing.
- Food and Staples Retailing.
b) The company is in any other sector with FLAG-related emissions totalling 20% or more of overall emissions across scopes.
In addition to the GHG accounting of land-related GHG emissions, the SBTi requires the inclusion of no-deforestation commitments with a target date of 2025.
Key points to consider:
- Companies must keep FLAG and energy/industry (non-FLAG) targets and accounting separate. FLAG-relevant emissions and removals include those related to agriculture (to farm gate, excluding processing), LUC, and land management, including forestry (to yard, excluding processing).
- For companies with FLAG emissions below the 20% threshold that choose not to set a separate FLAG target, FLAG emissions must be accounted for separately and included in the traditional target. Removals may not be used in this case.
- If a company falls under a FLAG-designated sector (e.g., food and beverage processing) but has no or only limited (less than 5%) GHG emissions associated with land and agriculture, the company does not need to set a FLAG target but shall include those FLAG-related emissions in the overall target boundary and account for them with energy/industry (non-FLAG) targets. No FLAG removals can be included in a target if it is not a FLAG target.
- Small and medium-sized enterprises (SMEs) are not required to set FLAG targets.
What are the 11 available commodities for Intensity pathways?
Beef, Chicken, Dairy, Leather, Maize, Palm oil, Pork, Rice, Soy, Wheat, and Timber & Wood fiber
What are the upcoming commodities in the future?
Aquaculture, Barley, Cocoa, Coffee, Cotton, Perennial crops, Rubber, Sheep/Lamb/Goat and Wool, Sugar/Sugarcane, and Sunflower.