22 % of global greenhouse gas emissions: here is the weight of the agriculture, forestry and soil management sector. And if companies in the sector could finally set ambitious and robust decarbonization targets? This is what the SBTi FLAG method allows. Which companies and activities are concerned? What does the Science-Based Target initiative recommend? Discover what companies need to know about the Forest, Land and Agriculture methodology.
The SBTi FLAG, in a few words
- The SBTi, Science-Based Targets initiative, encourages and supports companies in setting greenhouse gas emission reduction targets that are scientifically consistent with the Paris Agreement's goals: a global warming of less than 1.5 °C.
- In order to support as many structures as possible, the SBTi works on sector-specific methodologies. Among them: the SBTi FLAG, Forest Land and Agriculture.
- FLAG targets concern companies with a significant share of activities related to the exploitation of forests, soils and agricultural lands in their value chain.
- The SBTi FLAG methodology allows organizations to set reduction targets and avoided emissions in 3 sub-domains:
1/ land use change,
2/ agricultural practices and land management,
3/ carbon elimination and sequestration through soil management. - For the companies concerned, committing to reducing their impact with the SBTi FLAG method will accelerate the transition of their structure, verify the ambition and realism of their decarbonization trajectory, and better value their commitments and results.
- Of course, setting a target is not enough - no matter how ambitious and robust it may be. The SBTi FLAG must be complemented by a decarbonization action plan and a solid implementation strategy.
Let's take a closer look at the ins and outs of this new methodology.
Understanding the SBTi's Forest Land and Agriculture methodology
Recap on the Science Based Targets initiative
The Science-Based Targets initiative (SBTi) encourages and guides companies in setting greenhouse gas (GHG) emission reduction targets based on science. The challenge? That their decarbonization trajectory is compatible with a warming of less than 1.5 °C compared to the pre-industrial era.
The SBTi was launched in 2015 through a partnership between:
- the Carbon Disclosure Project (CDP);
- the United Nations Global Compact;
- the World Resources Institute (WRI);
- the World Wildlife Fund (WWF).
The approach was designed as a continuation of the Paris Agreement: just as States commit to a carbon neutrality trajectory, companies can set realistic and robust trajectories to achieve the ambition of the Paris Agreement.
💡 For further information: The Science-Based Targets initiative (SBTi): definition and application.
To promote adoption by as many companies as possible, the SBTi develops sector-specific guides. Among these: the FLAG methodology - Forest Land and Agriculture.
Why is the forestry, soil and agriculture sector so important?
22 % of global greenhouse gas emissions. Here is the weight of the agriculture, forestry and soil management sector. That is almost a quarter of global GHG emissions. It is the most emitting sector, after energy.
At the same time, the field of agriculture, soils and forest areas is one of the most at risk from climate change. Notably due to droughts, weather events or biodiversity loss.
Companies setting climate impact targets related to soils and land use... Are still too few. Among the major causes? The lack of references and methodologies.
The SBT initiative puts an end to this gap.
Which companies and activities are covered by the FLAG objectives?
The SBTi FLAG method applies to two types of actors.
- Companies with activities based on the exploitation of soils, forests and agricultural lands. Forest products and paper, agricultural production, food and beverage processing, food product trade, etc.
- Companies belonging to other sectors of activity, at least 20% of global emissions (scope 1, 2 and 3) are linked to the exploitation of soils, forests and agricultural lands.
The SBT FLAG initiative allows setting decarbonization targets related to 3 emitting areas of activity.
- Land Use Change (LUC): deforestation, forest degradation, conversion of wetlands or natural meadows… These activities are highly emitting of GHG emissions. Indeed, the degradation of these natural ecosystems releases the stored carbon and reduces their future capacity to capture carbon.
- Agriculture and land management (Non-LUC): this category includes all emissions related to agricultural production - including livestock. Manure management, methane emissions from livestock, production and use of fertilizers, agricultural waste incineration, etc.
- Carbon removal and sequestration: the SBTi FLAG offers a framework to account for emissions sequestered through responsible agricultural practices. To be able to account for this carbon, the lands exploited must be part of the value chain. The method excludes carbon compensation and contribution approaches.
By what deadlines should FLAG objectives be set to remain certifiable?
To maintain or obtain SBTi certification, concerned companies must set FLAG targets within certain deadlines.
- For companies that set their SBTi targets before January 2020: FLAG targets must be added before December 31, 2023.
- For companies that set their SBTi targets between January 2020 and April 30, 2023: FLAG targets must be added before December 31, 2024.
- As of April 30, 2023, the FLAG target will be mandatory upon submission of SBTi targets, for concerned companies.
How to use SBTi FLAG in your company?
Respect the 5 key principles
The FLAG methodology recommends 5 key principles to engaged companies.
- Set short-term decarbonization targets (5 to 10 years) related to the Forest, Land and Agriculture sector.
- Take into account sequestered emissions in achieving short-term targets. Note: this concerns the soils and forests in the company's value chain, in no case the carbon compensation or contribution approaches.
- Set long-term FLAG targets, using the SBTi Net-Zero standards. By 2050, companies in the sector should reduce their emissions by at least 72%.
- Commit to a net zero deforestation target by 2025. And for good reason: stopping deforestation represents 80% of the potential to mitigate global warming from land-use change.
- Complement the FLAG targets with fossil emission reduction targets.
Integrate FLAG targets within a comprehensive approach
Of course, setting carbon reduction targets is not enough in itself. The SBTi FLAG methodology must be integrated within a global approach.
- Before setting reduction targets, it is important to accurately measure emission sources through a greenhouse gas emission inventory. Thus, it will be able to set targets consistent with its situation, and refer to the SBTi sectoral guidelines according to its emission sources.
- To achieve its reduction targets, it is important to implement an action plan. This must allow identifying, prioritizing and planning decarbonization actions, then specifying the means of their implementation.
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Highlighting commitments… And committing publicly
The SBT initiative has become a reference, in France and worldwide, in setting climate targets. Taking science-based targets is a proof of credibility for companies' stakeholders Not surprisingly, the latter therefore wish to highlight their commitments!
And it’s a good thing: publicly discussing your reduction goals is also an important lever for decarbonization. The SBT initiative even offers a guide to help companies communicate about their reduction goals.
For more information: The SBTi’s communication recommendations.
Note: any company can freely use the SBTi framework to set its decarbonization trajectory. However, to publicly communicate its goals, the company must formally submit these to the SBTi for official validation.
Summary: Decarbonization goals for land, forest, and agricultural activities
The SBTi is a reference for reduction targets that are scientifically compatible with the Paris Agreement.
The SBTi FLAG is the method for land, forest, and agricultural activities.
Two types of companies can use it:
- companies with activities that directly rely on this sector;
- structures where at least 20% of their GHG emissions come from this sector.
Thanks to the SBTi FLAG methodology, the companies concerned can set an ambitious and realistic decarbonization trajectory. These goals must be integrated into a comprehensive approach, from the GHG emissions inventory to a solid action plan.
Take a first step to contribute to global carbon neutrality goals: conduct your company’s carbon footprint assessment!
Sources
- The Science-Based Targets initiative (SBTi): definition and application, Guillaume Colin for Sami, March 2023.
- The SBTi launches the world’s first standard method to cover land-related emissions and removals, Science Based Targets, September 2022.
- Forest, Land and Agriculture (FLAG), Science Based Targets, consulted in April 2023.
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