SBTi FLAG Guidance v1.2: What Changed & What to Do Next

The new version of SBTi's FLAG Guidance is now in effect. Here's a breakdown of what changed, who's affected, and what action looks like in practice.

On 19 March 2026, the Science Based Targets initiative (SBTi) published Version 1.2 of its Forest, Land and Agriculture (FLAG) Science-Based Target-Setting Guidance. The update came into effect immediately. If your business has FLAG-related emissions and you're planning to submit or update science-based targets in 2026 or beyond, the new requirements apply to you now.

The revision came through an "urgent revision" provision, outside the regular update cycle, to address two criteria that required immediate attention: the company scope definition (FLAG-C1) and the no-deforestation commitment requirements (FLAG-C4). Both were approved by the SBTi Technical Council and adopted by the Board of Trustees following public consultation. This post covers what changed, who it affects, and what action looks like in practice.

A quick orientation: what FLAG is and why it matters

FLAG targets sit separately from a company's energy and industry science-based targets. They cover land-related emissions only, measured to the farm gate, across three categories: land use change (deforestation, peatland drainage, coastal wetland conversion), land management emissions (enteric fermentation, fertiliser use, flooded rice paddies), and land-based carbon removals (forest restoration, agroforestry, soil organic carbon).

The scale of the category makes it hard to deprioritise. FLAG emissions account for roughly 22% of net global greenhouse gas emissions, around 13 GtCO₂e per year, and land-sector action represents approximately 37% of the mitigation potential needed by 2030.

FLAG target setting was built into the SBTi framework in stages. The guidance launched in September 2022 as a voluntary option. From April 2023, it became mandatory for all new and updating SBT submissions that meet the FLAG criteria. Version 1.1 followed in December 2023 with minor updates. Version 1.2, published this month, is the first substantive revision.

What changed in version 1.2

FLAG-C1: expanded and clarified company scope

The sector list has been updated to more precisely define which companies fall within mandatory scope, with clearer language around how the 20% threshold is calculated. If your previous assessment of whether you were in scope was borderline, it's worth revisiting against the updated criteria.

The two triggers for the requirement remain: sector membership (Forest and Paper Products, Food Production, Food and Beverage Processing, Food and Staples Retailing, Tobacco), or FLAG-related gross emissions totalling 20% or more of total Scope 1, 2, and 3 emissions. What v1.2 tightens is the precision with which both are defined.

FLAG-C4: revised no-deforestation deadlines and expanded commodity requirements

This is the most operationally significant change. The previous requirement for companies to eliminate deforestation by 2025 has been removed. Under v1.2, companies setting FLAG targets for the first time have up to two years after submitting their targets for SBTi validation to achieve no-deforestation, subject to an absolute deadline of 31 December 2030 for submissions made after 2028.

For companies that already have validated commitments with a 2025 no-deforestation date, there is limited flexibility: existing commitments may be revised to a date no later than 31 December 2028. Commitment dates cannot be moved later than that. The SBTi's strong recommendation is to maintain existing commitments where possible. If a company does update its commitment, it must publicly disclose progress against its previous commitment, including barriers encountered, before revising.

Companies whose FLAG targets were submitted in 2025 but have not yet been approved may choose to voluntarily align with the v1.2 requirements.

The updated requirements also expand the commodities that must be assessed. Companies must now evaluate cattle, cocoa, coffee, oil palm, rubber, soy, and timber, including products where these commodities are embedded as feed or transformed ingredients at or above 1% of the finished product.

On cutoff dates: the recommended standard remains 2020 or earlier. Where a 2020 cutoff is not achievable for specific portions of the value chain, this must be disclosed and justified in public documentation, with 2020 or earlier cutoff dates maintained for all other portions. Cutoff dates cannot be moved to a later date once set.

New documentation requirement

Version 1.2 introduces a formal documentation obligation. Within 12 months of validating its FLAG target, a company must publish on its own website or in relevant policy documents: the method and outcome of its assessment of primary deforestation-linked commodities, and key information on how the company plans to deliver its no-deforestation commitment.

The no-deforestation commitment itself must also be posted on the SBTi target dashboard using the required wording: "[Company X] commits to no-deforestation across its primary deforestation-linked commodities, with a target date of [no later than 2 years after FLAG target submission date, and no later than 31 December 2030]."

Alignment with the GHG Protocol Land Sector and Removals Standard

Version 1.2 reflects the publication of the GHG Protocol Land Sector and Removals Standard Version 1.0, released in January 2026. Companies that already have validated non-FLAG science-based targets and are required to set FLAG targets must now do so before the end of their five-year review period, rather than within six months of the Land Sector Standard's publication. Companies may continue to use the 2022 draft guidance until 1 January 2027, when the new standard becomes mandatory.

The framework you're working within

With the v1.2 changes in view, it helps to be clear on the full set of requirements you're navigating.

Who must set a FLAG target

Companies in FLAG-designated sectors, or any company where FLAG-related gross emissions represent 20% or more of total Scope 1, 2, and 3 emissions. SMEs are exempt. Companies with FLAG-related emissions below 5% of their overall footprint are also exempt, but must still include those emissions in their energy and industry targets and cannot include FLAG removals in that boundary.

There is an additional Scope 3 obligation worth flagging: companies that meet the FLAG criteria and whose Scope 3 gross emissions represent 40% or more of total Scope 1, 2, and 3 emissions must set both a FLAG Scope 3 target and a separate energy/industry Scope 3 target. Each 67% coverage threshold must be met independently.

Emissions coverage

The FLAG target must cover at least 95% of FLAG-related Scope 1 emissions and at least 67% of FLAG-related Scope 3 emissions. Removals must be reported separately from emissions and cannot be netted against each other within the target.

FLAG abatement cannot be used to meet energy and industry targets. Land management CO₂ removals may only count toward FLAG targets. This prevents companies from using land-sector improvements to offset fossil fuel reductions they should be making elsewhere.

The SBTi offers two approaches, which can be combined using the FLAG Aggregator Tool. The sector approach is an absolute reduction target requiring a 3.03% reduction per year, best suited to companies with diversified FLAG emissions. The commodity approach is an intensity reduction target covering 11 commodities (beef, chicken, dairy, leather, maize, palm oil, pork, rice, soy, wheat, and timber and wood fibre) across 26 regional pathways. It is applicable where a single commodity represents 10% or more of total FLAG emissions and required for timber and wood fibre sector companies.

Action checklist: six steps to set your FLAG target

1. Determine whether you are in scope. Check FLAG-designated sector membership and whether FLAG-related gross emissions exceed 20% of total Scope 1, 2, and 3. Reassess against the updated v1.2 criteria if your previous assessment was borderline.
2. Build your FLAG greenhouse gas inventory. Quantify land use change emissions (using dLUC or sLUC), land management emissions, and land-based removals, aligned with the GHG Protocol Land Sector and Removals Standard. Meet Scope 1 (95%) and Scope 3 (67%) coverage thresholds. Report removals separately from emissions.
3. Choose your pathway. Select the sector approach, commodity approach, or a combination. Use sub-global pathways for commodities where available. Use the SBTi FLAG Aggregator Tool to bring approaches into a single target.
4. Set your no-deforestation commitment. Assess primary commodities in your value chain. Confirm your cutoff date is no later than 2020 where possible. Set your target date within two years of submission. Post the required commitment language on the SBTi dashboard.
5. Submit for SBTi validation. Submit base year emissions, activity data, Scope 1 and 3 coverage data, and separately reported removals. Within 12 months of validation, publish your commodity assessment methodology and no-deforestation delivery plan on your website.
6. Report annually and review. Track progress against your FLAG target each year. Reassess at five years. Recalculate if triggered by significant operational changes such as mergers, acquisitions, or major shifts in land use.

How Zevero can help

If you're approaching a five-year SBT review, setting targets for the first time, or reassessing your FLAG position in light of the v1.2 update, we can help you get there with data that holds up to scrutiny. Talk to our sustainability team about your FLAG requirements.