Smart Net-Zero

Science Based Targets initiative (SBTi) | Source | Brief |

The SBTi FLAG Guidance provides a framework for companies in the forest, land, and agriculture (FLAG) sectors to set scientifically-aligned emissions reduction targets aimed at limiting global warming to 1.5°C. Recognizing the unique vulnerability and substantial mitigation potential of this sector, the guidance outlines distinct approaches for supply-side (commodity producers) and demand-side (commodity purchasers) actors. Demand-side actors utilize the FLAG Sector Pathway, targeting a 3.03% annual absolute emissions reduction. Supply-side actors apply specific Commodity Pathways based on intensity convergence. Critical measures include eliminating deforestation—which represents 80% of land-use change mitigation potential—and prioritizing emissions reductions alongside carbon removals like reforestation and soil carbon sequestration. Companies are required to publicly report no-deforestation commitments by December 2025, adhering to standards like the Accountability Framework initiative (AFi). The guidance emphasizes separate accounting for emissions and removals, advocating high data quality and detailed reporting across FLAG supply chains.