Understanding SBTi’s FLAG Targets for Climate Action

Understanding SBTi’s FLAG Targets for Climate Action

Introduction:       

The FLAG sector contributes around 25% of net anthropogenic emissions and has carbon sequestration potential. SBTi's new guidance requires committed companies to account for FLAG emissions and adopt decarbonization strategies aligned with the 1.5 degrees Celsius scenario. As a climate consultancy, we help clients navigate and leverage the insights from SBTi's new FLAG guidance

The Importance of FLAG Guidance: 

Companies grasp energy and process-related emissions reporting but lack knowledge about emissions from the forest, land, and agriculture sector. Historically, these emissions were overlooked in corporate inventories, leaving 22 percent of global emissions unaccounted for. SBTi's assessment highlights the FLAG sector's potential to reduce global emissions (up to 30 percent by 2050) through its carbon sink capacity. To address this, both SBTi and GHG Protocol have developed frameworks for accounting and target setting to enhance global emissions reduction efforts

SBTi's FLAG Project: 

The SBTi FLAG project has developed guidance and a tool to enable companies to set science-based targets for land-related emissions. Additionally, the GHG Protocol's Land Sector and Removals Initiative complements this effort by offering guidance on accounting for land-related emissions and removals, whether technological or natural, within a carbon inventory

Empowering Companies with Structure and Clarity: 

Thanks to these initiatives, companies in the FLAG sector now have the much-needed structure to manage the 22 percent of global emissions attributed to this sector. This is a crucial step toward achieving global emissions reduction goals

Criteria for Setting a Science-Based FLAG Target: 

SBTi requires companies that meet one of the following two criteria to set a FLAG science-based target:

Ultimately, all companies, depending on their sector and the materiality of FLAG-related emissions, will need to account for these emissions when setting science-based targets. They will either have to set separate FLAG targets or incorporate these emissions into their non-FLAG targets

Conclusion:

By adhering to the SBTi's new FLAG guidance, companies can take significant strides in reducing their emissions, contributing to global climate goals, and demonstrating their commitment to a sustainable future.