SBTi Opens Consultation to Forest, Land and Agriculture (FLAG) Criteria V1.1 – Criteria 1 and Criteria 4. ESG Broadcast shares key takeaways.
On October 7, 2025, the Science Based Targets initiative (SBTi) opened public consultation proposing urgent revisions to its FLAG Guidance. These proposed updates focused specifically on Criteria 1 and 4 of the Forest, Land and Agriculture (FLAG) sector guidance document. The consultation sought stakeholder feedback, adhering to a 30-day timeline. It aims to maintain the operationality of the FLAG process beyond the original 2025 deadline.
The FLAG sector accounts for almost a quarter of global emissions, making its rapid decarbonization absolutely crucial for global net-zero goals. The original Criterion 4 had previously required companies to publicly commit to halt deforestation across all emission scopes by December 31, 2025. This fast-approaching 2025 deadline created significant implementation challenges for companies yet to set targets. Over 300 companies had already set FLAG targets, highlighting the widespread impact of the revisions.
The SBTi proposed extending the final allowable target date for achieving new no-deforestation commitments. New targets would be now required within two years of submission for validation, with an absolute hard deadline of December 31, 2030. The extension acknowledged the overall global progress in halting deforestation since the guidance’s initial publication. This crucial change provided a much-needed flexible model for rapid progress by land-intensive businesses.
The revision shifted the no-deforestation cutoff date requirement from a prior recommendation to a mandatory commitment for target setters. Companies were henceforth required to use a clear cutoff date that absolutely predated the submission of its first FLAG target for validation. The commodity scope included in commitments also saw an important and necessary update. This specific update aligned the SBTi FLAG guidance with the standards outlined in the European Union Deforestation Regulation (EUDR).
The updated guidance now requires the inclusion of seven EUDR-covered commodities like cattle, cocoa, coffee, and timber as a bare minimum. This mandate applied specifically when any commodity contributed five percent or more of the company’s total gross FLAG emissions. Deforestation alone is responsible for a massive 45% of total land-based AFOLU (Agriculture, Forestry and Other Land Use) emissions. Such increased specificity improved clarity and consistency for all companies setting targets.
Criterion 1 was adjusted concerning the deadline for companies that were previously target-exempt. Companies must now set FLAG targets as part of their mandatory five-year review submission instead of a date tied to the GHG Protocol’s standard release. Public documentation requirements are simultaneously clarified to increase transparency among reporting organizations. A new requirement mandated that companies publish key details outlining their delivery plans for the commitment.
The final updated Criteria is expected to be officially published no earlier than the first quarter of 2026, following the successful completion of the consultation period. Feedback from all stakeholders remains absolutely critical to ensure the final updates are both scientific and practical for all businesses.
Strategic significance lies in creating a functioning framework for ambitious corporate climate action that addresses deforestation post-2025. The implementation of the special urgency provision highlighted the global need for prompt adaptation of climate-related standards.
