As the urgency to combat climate change intensifies, companies across all sectors are under increasing pressure to set ambitious climate targets aligned with the 1.5°C goal. For businesses in land-intensive industries such as agriculture, food, and forestry, the Science Based Targets initiative (SBTi) has introduced Forest, Land, and Agriculture (FLAG) Pathways — a sector-specific framework designed to drive emissions reductions across supply chains and land-use activities.
With over 22% of global greenhouse gas emissions originating from land use and agricultural practices, the FLAG pathways provide a much-needed structure for addressing emissions in the food industry, especially those linked to deforestation, livestock, and fertilizer use.
What Are SBTi’s FLAG Pathways?
SBTi’s FLAG Pathways are science-based emissions reduction targets tailored for companies whose operations or supply chains involve land use, agriculture, and forestry. These pathways are designed to account for the unique challenges of land-based emissions and the critical role of ecosystems in sequestering carbon.
FLAG pathways are built around three primary levers:
Emissions Reduction: Lowering emissions from land-use activities like livestock management, fertilizer use, and deforestation.
Conservation: Protecting existing forests and ecosystems to prevent further emissions from land-use change.
Carbon Removals: Sequestering carbon through activities such as reforestation and soil carbon improvements.
Who Needs to Set FLAG Targets?
Companies are required to set FLAG targets if:
More than 20% of their emissions (Scope 1, 2, or 3) come from land-related activities.
They operate in sectors such as:
Agriculture
Food & Beverage
Forestry
Paper & Pulp
Apparel (if materials include cotton, leather, or wool)
Retail (if selling agricultural products)
Given the food industry’s heavy reliance on agricultural raw materials, FLAG targets will play a central role in shaping decarbonization strategies for businesses across the supply chain.
FLAG Reduction Targets
FLAG pathways require companies to:
Reduce FLAG-related emissions by 30% by 2030
Achieve 72% emissions reduction by 2050 (Net Zero pathway)
Use carbon removals for up to 20% of their FLAG target, while the remaining 80% must come from direct emissions reductions
This structure ensures that companies prioritize decarbonization efforts over offsetting emissions.
Why FLAG Matters for the Food Industry
The food industry’s supply chain is one of the most complex and emissions-intensive sectors, with over 70% of total emissions typically falling under Scope 3. FLAG targets will force companies to dig deeper into their value chains, addressing:
Deforestation from sourcing agricultural commodities like soy, palm oil, and beef
Methane emissions from livestock
Nitrous oxide emissions from fertilizer use
Land degradation and soil carbon loss
By embedding FLAG targets into their climate strategies, food companies can align with global climate goals while mitigating risks linked to deforestation, supply chain disruption, and regulatory pressure.
How SaaS Carbon Management Platforms Can Support FLAG Compliance
SaaS platforms specializing in carbon management can play a pivotal role in helping companies meet FLAG targets by:
Automating FLAG-specific emissions calculations
Providing Scope 3 emissions tracking with FLAG methodologies
Integrating land-use emissions factors into carbon accounting systems
Enabling supplier engagement and data collection across the supply chain
Offering scenario modeling tools to quantify the impact of emissions reduction and carbon removal projects
By incorporating FLAG pathways into their product offerings, carbon management platforms can help companies unlock granular emissions insights, set accurate targets, and accelerate their journey towards science-based climate action.
Conclusion
The introduction of SBTi’s FLAG pathways marks a significant step forward in addressing land-based emissions — one of the largest yet often overlooked sources of corporate carbon footprints. For the food industry, adopting FLAG targets isn’t just about regulatory compliance — it’s about building resilient, low-carbon supply chains that can thrive in a climate-conscious future.
As companies seek to align with the 1.5°C goal, carbon management platforms that integrate FLAG methodologies will become essential partners in driving meaningful emissions reductions across the entire value chain.