akar.earthFLAG: Definition
What is FLAG? Forest, Land and Agriculture emissions and removals under SBTi, why FLAG targets matter for commodity buyers sourcing from Indonesia.
FLAG stands for Forest, Land and Agriculture, the category the Science Based Targets initiative (SBTi) uses for land-related greenhouse gas emissions and removals, such as from deforestation, fertiliser, livestock and tree growth. Companies with significant FLAG emissions set separate FLAG targets alongside their energy and industry targets.
Why it matters
For many food and consumer goods companies, land use change and agriculture are the largest part of their footprint. FLAG guidance makes them address it directly: cut land emissions, remove carbon in their supply chains and commit to no deforestation. That creates demand for deforestation-free sourcing and for farm-level tree planting and agroforestry within supply sheds.
How it is measured
- Emissions and removals are calculated using land sector accounting rules, now set by the GHG Protocol; see GHG Protocol land sector.
- Land use change emissions are attributed to commodities sourced from converted land.
- Removals count only when they are in the value chain, monitored and permanent enough under the rules.
- Targets follow sector pathways set by SBTi, with a no-deforestation commitment.
Read our page on SBTi FLAG.
Indonesia and Southeast Asia angle
Indonesia’s palm oil, cocoa, coffee and rubber supply chains carry high FLAG emissions where land conversion happened. Buyers with FLAG targets want suppliers who can show no recent deforestation and who can host removal projects on farms. This is often called insetting; see carbon credits vs insetting. Plot-level tree data collected for carbon can also support EUDR, a double benefit for exporters.
FLAG targets usually require companies to collect much better supply chain data than before: where commodities come from, what the land was before and how farms are changing. That data overlaps heavily with what EUDR and carbon projects need, so one collection effort can serve several purposes.
Common mistakes
- Confusing FLAG removals with purchased carbon credits.
- Claiming removals without monitoring or plot-level traceability.
- Ignoring land use change emissions in the baseline.
FLAG targets are validated by SBTi.
Frequently asked questions
Who needs to set FLAG targets?
Companies in designated land-intensive sectors, such as food production, agriculture and forestry, and others whose FLAG emissions make up a significant share of their total, as set out in SBTi's FLAG guidance.
Can FLAG targets include removals?
Yes. FLAG targets can count removals within the company's value chain, such as trees planted on supplying farms, when accounted under GHG Protocol land sector rules. Credits bought from outside the value chain do not count.