What companies need to know: SBTi updates the Forest, Land and Agriculture Target-Setting Guidance and the GHG Protocol’s Land Sector & Removals Standard

The land sector is at a critical moment for climate action, with new resources and guidance emerging to help companies translate ambition into credible implementation. The Science Based Targets initiative (SBTi) has published an updated version of its Forest, Land and Agriculture Target-Setting Guidance, introducing targeted revisions to implementation timelines. In parallel, the Greenhouse Gas (GHG) Protocol has released its Land Sector and Removals Standard.

For companies operating in land-intensive value chains, integrating land-sector decarbonization into core strategy is no longer optional. More than $44 trillion of economic value generation, over half the world’s total GDP, is moderately or highly dependent on nature and its services, underscoring the material importance of land-sector climate action to protect long-term business value and secure resilient and stable supplies of key agricultural commodities.  

The publication of the GHG Protocol Land Sector and Removals Standard marks a significant milestone for the sector. It brings greater clarity and consistency to how companies account for and report land-based emissions and removals—strengthening the foundation for credible corporate climate action and forest, land and agriculture (FLAG) target setting.

The SBTi has also published Version 1.2 of its FLAG Target-Setting Guidance. This update includes a requirement for all companies setting FLAG targets to use the final Land Sector and Removals Standard from January 1, 2027 onwards, and introduces a series of targeted changes focused on implementation timelines and no-deforestation commitments. Together, these updates clarify expectations, while maintaining ambition and alignment with established frameworks.

How the SBTi’s FLAG Guidance and GHG Protocol Land Sector and Removals Standard work together

In 2022, the SBTi published the FLAG Science-Based Target-Setting Guidance, enabling companies in land-intensive sectors to set targets that include land-related emissions and removals for the first time. At the same time, the GHG Protocol was developing its Land Sector and Removals Standard to provide a comprehensive accounting and reporting framework for land management, land-use change and related activities.

The two frameworks serve complementary roles and are aligned in their underlying principles. The Land Sector and Removals Standard defines how companies account and report land-based emissions and removals. The SBTi FLAG Guidance defines how those emissions and removals are translated into science-based targets.

What the new GHG Protocol Land Sector and Removals Standard means for companies setting FLAG targets

Companies setting FLAG targets with SBTi are required to use the Greenhouse Gas Protocol for emission accounting. Now that the final Land Sector and Removals Standard has been published, companies setting targets can choose to use either the draft GHG Protocol Guidance or the final GHG Protocol Land Sector and Removals Standard until January 1, 2027. This gives continuity and time to companies already in the process of preparing their FLAG targets.

The latest update of the SBTi’s FLAG Guidance and the Land Sector and Removals Standard remain well aligned. One key difference between the two resources is their approach to target structure. The Land Sector and Removals Standard recommends separating targets for land-based emissions and removals. However, through the SBTi, companies set a single FLAG target that covers both emissions reductions and removals, but are required to account for and report emissions and removals separately.

The Land Sector and Removals Standard explicitly states that where companies participate in science-based target-setting initiatives, the requirements of those initiatives supersede the Standard’s target-setting recommendations. This means companies will continue to set a FLAG single target, and account for and report emissions and removals separately for the foreseeable future.

The SBTi works closely with the GHG Protocol through its participation in governance and technical working groups to ensure alignment so that companies can continue setting robust FLAG science-based targets with confidence.

Key updates to the SBTi’s FLAG Guidance

The updated FLAG Guidance introduces five targeted revisions to Criteria 1 and 4 focused on implementation timelines and no-deforestation commitments. These updates include: 

• Alignment with the GHG Protocol’s Land Sector and Removals Standard. Companies that have already set non-FLAG targets and are also required to set FLAG targets must do so before the end of their five-year review period, rather than within six months of the Land Sector and Removals Standard’s publication. (FLAG Criterion 1)
• No-deforestation target date. Companies setting FLAG targets for the first time have up to two years after submitting their FLAG targets for validation to eliminate deforestation, with an absolute deadline of December 31, 2030 for submissions after 2028. (FLAG Criterion 4)
• No-deforestation cutoff date. The expected deforestation cutoff date remains 2020 or earlier. In specific cases where 2020 is not feasible, companies must set a cutoff date no later than three years prior to submission of their first FLAG targets for SBTi validation. (FLAG Criterion 4)
• Commodities included in no-deforestation commitments. Commodity requirements under no-deforestation commitments have been updated to include the main deforestation-linked commodities globally. (FLAG Criterion 4)
• Required documentation to support no-deforestation commitments. The Guidance clarifies that companies will be required to publish documentation to demonstrate how they will deliver their no-deforestation commitments. (FLAG Criterion 4)

These revisions were informed by public consultation and targeted input from subject-matter experts, including members of the Corporate Net-Zero Standard V2 and the Timber and Wood Fiber Pathway expert working groups, to help ensure the updated FLAG Guidance Version 1.2 is practical, scientifically robust, and credible.

Next steps for companies setting FLAG targets

Version 1.2 of the FLAG Guidance will go into effect immediately. All companies that submit targets in 2026 or later, including before Version 1.2 was published, must align their no-deforestation commitments with the updated requirements. Companies that submitted targets for validation in 2025, but whose FLAG targets are not yet approved, may voluntarily align no-deforestation commitments with Version 1.2 requirements.

Companies that already have FLAG targets and no-deforestation commitments validated under Version 1.0 or 1.1, are expected to maintain their existing no-deforestation commitment, and update their targets as part of the regular target review process, or earlier when a target recalculation is warranted.

If a company chooses to update its no-deforestation commitment in line with FLAG Guidance Version 1.2, it must meet additional requirements detailed in the Guidance to ensure continuity of action on no deforestation and avoid delays in implementation.

Accelerating land-sector climate action

The FLAG sector is central to the global net-zero transformation. It carries tremendous potential to accelerate climate mitigation, while also facing significant risks from ecosystem degradation and nature loss. By setting science-based targets in line with the SBTi FLAG Guidance and defining appropriate decarbonization strategies, companies can help stabilize the climate, preserve the land on which their businesses depend, and capture the many benefits of target setting. Get started at SBTi Services today.