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Understanding FLAG emissions and their impact on GHG emissions reporting

Emissions from Forest Land, and Agriculture (FLAG) activities within a company's supply chain are a key emissions category that have received recent attention from reporting bodies such as the Science Based Targets initiative. The FLAG sector is responsible for approximately 22% of the global greenhouse gas (GHG) emissions, despite this, while much global corporate focus has been on electrification, energy and production efficiencies, FLAG emissions have remained under measured, with much less action on reduction.

In this piece we explore what FLAG emission are, which companies are likely to be affected, and why reporting on these matters in the global effort to keep global warming below 1.5 °C. 

What are FLAG Emissions?

FLAG emissions are the greenhouse gases released from various land-based activities, unlike emissions from burning fossil fuels, FLAG emissions encompass a broad range of sources related to how land is used and managed.

Activities like deforestation, soil use, and farming not only release greenhouse gases but can also disrupt forests and soils that normally absorb Carbon Dioxide (CO₂) from the atmosphere. This double impact, both adding emissions and reducing natural absorption, makes FLAG emissions especially important to address in climate efforts and sustainability planning.

What are the considerations for accounting for FLAG emissions in GHG Reporting?

Without conducting in depth Life Cycle Analyses, calculating FLAG emissions within the supply chain can prove extremely difficult. The GHG Protocol Land Sector and Removals Guidance for accounting for these is still in draft format, due to be released in Q1 2025. There are multiple aspects that need to be considered within the calculations which are outlined below.

Land use change is a large part of FLAG emissions, with the varying types of land use comes varying carbon stock which is linked to organic matter. Forest land is regarded as the most carbon rich, then grassland, crop land, wetland and settlements in that order of carbon content. Emissions must be calculated to consider any disruption to carbon sinks, for example from the conversion of forest land to cropland and vice versa; labelled by GHG Protocol as Carbon stock gains or losses.

Production on lands with no land use change, e.g. croplands that remain croplands, need to account for forest degradation or soil degradation, as a loss, or if carbon stock is increasing through practises such as improved forest management.

There is a high bar for classifying removals within FLAG emissions, requiring thorough and ongoing storage monitoring, traceability requirements all encapsulated within primary data. FLAG removals can include improved forest management and reforestation, soil carbon enrichment, wetland restoration and more.

SBTi Reporting of FLAG Emissions 

The SBTi requires companies that meet either of the following two conditions to set a FLAG-specific target separate from their targets for other emissions:

  • Companies from the following SBTi-designated FLAG sectors; Forest (Wood) and Paper, Food production, Food and beverage processing, Food retailing, Tobacco
  • Companies in any other sector with FLAG-related gross emissions that total more than 20% of overall emissions across scopes 1, 2 and 3.
Key requirements for FLAG SBT’s:
  • Set Short term FLAG targets to reduce emissions
  • Include nature-based removals in short term targets
  • Set Long term FLAG targets, aiming to cut at least 72% emissions by 2050
  • Commit to Zero deforestation by 2025
  • Also set targets for fossil fuels

Any companies that have FLAG-related emissions within their supply chain therefore have to calculate these emissions in order to set science-based targets. This also applies to businesses with minimal FLAG emissions; to demonstrate they do not breach the 20% threshold where a specific FLAG target is required.

Why FLAG Emissions Matter

Companies within the FLAG sectors, whether directly involved or through their supply chain, can gain reputational and economic advantages by actively reducing their land use impacts or collaborating with their supply chain to enhance accountability. There is a wide array of opportunities to come from reducing FLAG emissions. These sectors also offer significant potential for the long-term removal of carbon, if managed responsibly.

Reducing these emissions shows a company’s commitment to mitigating climate change, which resonates strongly with the growing number of customers who prioritise sustainability. Transparency about environmental impact is increasingly valued, as customers look for brands that align with their values and take responsibility for their footprint.

Looking to the future, businesses that manage FLAG emissions proactively reduce risks associated with stricter regulations, carbon taxes, and potential supply chain disruptions.

If your company is considering setting a Science Based Target, Beyondly can support with assessing your full scope 3 emissions, and  support with the science-based target setting process. Please contact our team at solutions@beyond.ly to find out more.