SBTi’s updated FLAG Guidance mandates stricter no-deforestation timelines, with a hard 2030 deadline for compliance
Companies must align land-sector targets with GHG Protocol standards, reshaping climate governance across agriculture-linked industries
Over $44 trillion in economic value tied to nature heightens financial risk exposure for companies failing to act
The Science Based Targets initiative (SBTi) has released Version 1.2 of its Forest, Land and Agriculture (FLAG) Guidance, tightening requirements for companies operating in one of the most emissions-intensive and nature-dependent sectors of the global economy.
Effective immediately, the revised framework introduces stricter expectations for companies setting science-based targets tied to land use, agriculture, and deforestation-linked supply chains. Businesses submitting targets from 2026 onward must align their no-deforestation commitments with the updated rules, even if their submissions predate the guidance.
The move reflects growing pressure on corporates to address land-sector emissions with the same rigor applied to energy and industrial decarbonization, while closing loopholes that have historically delayed action on deforestation.
Alignment With Global Carbon Accounting Standards
A central change in Version 1.2 is its alignment with the Greenhouse Gas Protocol’s Land Sector and Removals Standard, bringing greater consistency between corporate climate disclosures and target-setting frameworks.
Companies that have already set non-FLAG targets but fall within the scope of FLAG requirements must now establish land-sector targets within their five-year review cycle, replacing the previous six-month compliance window tied to the publication of the GHG Protocol standard.
This adjustment gives firms more structured timelines while reinforcing accountability within established governance cycles. It also signals a broader convergence across climate reporting frameworks, a priority for regulators and investors seeking comparable, decision-useful data.
Hard Deadlines for Ending Deforestation
The updated guidance introduces clearer timelines for eliminating deforestation across corporate supply chains. Companies setting FLAG targets for the first time will have up to two years from submission to meet no-deforestation commitments. However, all companies submitting targets after 2028 must meet an absolute deadline of December 31, 2030.
The expected cutoff date for deforestation remains 2020 or earlier. Where this is not feasible, companies must define a cutoff no later than three years prior to submitting their FLAG targets.
The framework also expands commodity coverage, requiring companies to address the full range of globally significant deforestation-linked commodities. In parallel, firms must now publish detailed documentation outlining how they will deliver on no-deforestation commitments, increasing transparency for investors and stakeholders.
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Raising the Bar on Implementation and Accountability
The revisions were shaped through public consultation and expert input, and formally approved by the SBTi Technical Council and Board of Trustees. The focus is on making climate targets more actionable while preserving alignment with established scientific and reporting frameworks.
For corporates, the implications extend beyond compliance. The FLAG sector sits at the intersection of climate risk, biodiversity loss, and supply chain resilience, areas increasingly scrutinized by regulators and capital markets.
“Land-sector climate action is critical to protect long-term business value and secure resilient and stable supplies of key agricultural commodities. In setting science-based targets in line with the new version of the FLAG Guidance, and defining appropriate decarbonization strategies to implement those targets, companies can help to not only stabilize the climate but preserve the land on which their businesses depend.” said Karl Downey, Head of Sector Standards at the SBTi.
Why It Matters for Business and Investors
The economic stakes are substantial. More than $44 trillion of global economic value, over half of global GDP, is moderately or highly dependent on nature and ecosystem services. Degradation of land systems therefore represents a direct financial risk, particularly for companies in food, agriculture, consumer goods, and materials.
For executives and investors, the updated guidance sharpens expectations on how climate and nature risks are managed and disclosed. It also reinforces the need for integrated strategies that link emissions reduction with land stewardship and supply chain transformation.
As climate policy and financial regulation continue to evolve, frameworks like FLAG are becoming critical tools for aligning corporate action with global climate and biodiversity goals. The latest update moves the market closer to that alignment, while raising the cost of inaction for companies exposed to land-sector risks.
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