Five things to know about forests, land use, and FLAG targets

Companies have an important role to play in land sector mitigation—that is, the reduction of greenhouse gases emitted from land use such as agriculture or forestry, and land’s ability to sequester carbon. In fact, agriculture, forests, and other land use account for 22% of global greenhouse gas emissions, making addressing these land-based emissions imperative.

To help companies more consistently account for and address their land sector emissions, the Science Based Targets initiative (SBTi) introduced the Forest, Land and Agriculture (FLAG) Guidance and FLAG Target-Setting Tool in November 2022—and companies moved quickly to implement it. Since the release of the guidance—and at the time of this publication—more than 250 entities have set FLAG targets, reflecting the growing recognition of the land sector’s importance to corporate climate leadership.

WWF’s recent report, The First 100+ FLAG Targets: Forests, Land and Agriculture Under the Science Based Targets initiative, is a first look into what companies that have already set FLAG targets are saying about their land sector mitigation strategies. It draws from public corporate disclosures to examine the first 149 FLAG targets, outlining what land sector mitigation levers are being mentioned and highlighting companies’ implementation efforts.

Key Findings

1. Companies are actively setting FLAG targets. By the end of 2024, 149 companies set FLAG targets under the SBTi. This paper started as an effort to review the first 100 FLAG targets, but that number was far exceeded by the time of publication. In 2024, more than two companies each week had FLAG targets validated.

2. Companies see land sector mitigation as critical to their climate strategies. Based on the rapid growth in FLAG targets, we see that companies view FLAG targets as both achievable and beneficial for their mitigation efforts. Companies are reporting that FLAG target setting is helping them achieve significant milestones, such as setting no-deforestation commitments for the first time; moving up target dates for a no-deforestation target; and incorporating land sector emissions into corporate target setting for the first time

3. Companies with FLAG targets are situated across multiple sectors, geographies, and positions in the value chain. FLAG companies are found across the value chain, including agriculture and forestry operations/producers, traders, processors, grocers, and other retailers. These companies represent many sectors, including food and beverage, forest products, apparel, and construction. And companies with FLAG targets are headquartered in all regions of the world, with a majority concentrated in Europe.

4. Companies that drive significant deforestation emissions are setting FLAG targets. Of the companies with FLAG targets, 27 appear in the Global Canopy 2024 Forest 500 Report, a list of large companies contributing the most to tropical deforestation. FLAG mitigation targets—complemented by the required no-deforestation commitment—focus companies’ efforts on the land-use change emissions in their direct operations and supply chains.

5. Land sector mitigation plans have room to mature. While FLAG companies frequently report their actions to address land-use change and advance regenerative agriculture, there is limited mention of action on agroforestry and silvopasture. Similarly, while forest sector accounting guidance (Greenhouse Gas Protocol) and target-setting pathways (SBTi) are under review, there is limited mention in companies’ climate action plans of improved forest management. Given the mitigation potential in these areas, we urge companies to explore and evaluate possible actions now to be ready when additional guidance—such as the Greenhouse Gas Protocol Land Sector and Removal Standard and SBTi FLAG Timber and Wood Fiber Pathway—are available.

Read the full report: The First 100+ FLAG Targets: Forests, Land and Agriculture Under the Science Based Targets initiative