SBTi Updates Forest and Land Agriculture Guidance After GHG Protocol Standard Release

The Science Based Targets initiative has published Version 1.2 of its Forest, Land and Agriculture Target-Setting Guidance, introducing updated implementation timelines and revised no-deforestation requirements aligned with the newly released GHG Protocol Land Sector and Removals Standard. Companies setting FLAG targets after 2026 must use the final Land Sector and Removals Standard from January 1, 2027.

The GHG Protocol's Land Sector and Removals Standard, released in parallel with the SBTi update, establishes how companies account for and report land-based emissions and removals, including land management, land-use change and related activities. The two frameworks serve complementary roles: the GHG Protocol standard defines the accounting basis while the SBTi FLAG Guidance translates those figures into science-based targets. Companies may use either the draft or final GHG Protocol guidance until January 1, 2027, providing continuity for those already developing FLAG targets.

Version 1.2 of the FLAG Guidance introduces five targeted changes to criteria on implementation timelines and no-deforestation commitments. Key updates include a revised deadline framework for no-deforestation commitments — companies setting FLAG targets for the first time have up to two years after submitting for validation to eliminate deforestation, subject to an absolute deadline of December 31, 2030 for submissions after 2028. Commodity coverage under no-deforestation commitments has been expanded to include the main deforestation-linked commodities globally, and companies must now publish documentation demonstrating how they will deliver no-deforestation plans.

The land sector accounts for around 22% of global emissions, and more than $44 trillion of economic value — representing over half of world GDP — is moderately or highly dependent on nature and its services. For Indian companies in food, agriculture, textiles and consumer goods with land-intensive value chains, the updated FLAG Guidance creates new obligations but also a clearer implementation pathway. Version 1.2 applies immediately to all companies submitting targets in 2026 or later, while companies with previously validated FLAG targets are expected to update commitments during their regular review cycle.

Key figure — $44 trillion — estimated global economic value moderately or highly dependent on nature