Climate standards body Science Based Targets initiative (SBTi) has called for evidence to shape the second version of its land-sector emissions standard, urging Southeast Asian companies to share their experience.
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SBTi’s current Forest, Land and Agriculture (FLAG) framework requires companies to separately measure and target emissions and carbon removals linked to land use, rather than treating them as a broad subset of indirect Scope 3 emissions. These include deforestation and land conversion, fertiliser and livestock emissions, farming and forest harvesting, as well as removals from restoration, agroforestry, improved forest management and soil-carbon practices.
Developed with WWF and input from major food, retail, forestry and consumer-goods companies, including Cargill, Danone, IKEA, Mars, Nestlé, PepsiCo and Walmart, FLAG provides a common approach for setting land-sector climate targets.
SBTi said it aims to make the forthcoming FLAG Standard “relevant and practical” for companies across the region by building a deeper understanding of “underrepresented regions”, including Southeast Asia.
The initiative is seeking real-world feedback on supply-chain structures, commodity exposure and implementation challenges in land-intensive sectors, it said in a statement. Southeast Asia is a major producer, processor and exporter of palm oil, rubber, rice, timber and seafood, with the region accounting for 8.2 per cent of global agri-food exports, based on latest available data.
“The broader the participation, the richer the evidence base will be,” an SBTi spokesperson told Eco-Business. “This is an opportunity for companies across Southeast Asia to directly inform the development of Version 2 of the FLAG Standard and ensure it reflects a diverse range of real-world experiences.”
The land sector is crucial to the global net-zero transition, accounting for 22 per cent of greenhouse gas emissions – the third-highest share after energy and industry – while facing risks from ecosystem degradation, nature loss and extreme weather.
For companies operating in land-intensive value chains, integrating land-sector decarbonisation into core business strategy is increasingly important, SBTi said.
More than 260 companies had validated FLAG targets as of last year, including 149 with net zero-aligned targets.
Evidence on the business case comes largely from companies with science-based targets generally, rather than FLAG targets alone. In an SBTi survey of 171 companies, 91 per cent reported an overall positive effect from setting science-based targets, two-thirds said the targets improved their competitiveness relative to peers, while 92 per cent reported neutral or positive long-term financial effects.
Around 71 per cent said the targets had improved their preparedness for regulatory change, and two-thirds said they were better positioned for a carbon-constrained economy.
Companies should continue setting targets under the current FLAG Guidance Version 1.2, while the revision is under way, said SBTi. Development of FLAG V2 is expected to take more than 12 months and will draw on implementation experience, submitted evidence, public consultations, pilot testing and expert working groups.
Expressions of interest for virtual stakeholder meetings are open until 8 September, while the call for evidence closes on 8 October. The engagement programme will examine how geographic and regulatory conditions, supply-chain structures and commodity exposure affect companies’ ability to implement FLAG targets.
