The Science Based Targets initiative issued an SBTi FLAG guidance update, tightening deforestation rules and timelines for companies setting land-sector climate targets.

The Science Based Targets initiative released Version 1.2 of its Forest, Land and Agriculture framework on March 19, introducing changes that affect companies with exposure to land sector emissions targets.

The updated framework took effect immediately. Companies submitting FLAG science-based targets in 2026 or later must align with the no-deforestation commitments SBTi requires under the revised rules, including those that prepared targets before publication.

Firms that submitted targets in 2025 but have not yet secured validation may choose to align with the SBTi FLAG guidance update voluntarily.

The changes aim to improve clarity and consistency in how companies set FLAG science-based targets while addressing supply chain deforestation risk and ESG concerns.

Alignment With Land Sector Accounting Standard

The SBTi FLAG guidance update aligns requirements with the Greenhouse Gas Protocol land sector standard on removals and emissions.

Companies that already set non-FLAG targets but fall under FLAG requirements must now comply within their five-year review cycle. Earlier rules required action within six months of the standard’s release.

This shift gives companies more time to integrate science-based targets and land use sector requirements into existing transition plans.

The update strengthens links between corporate deforestation targets compliance and global carbon accounting frameworks.

Deforestation Rules Set Clearer 2030 Deadline

The revised SBTi deforestation rules 2030 establish a defined pathway for eliminating deforestation across supply chains.

Companies setting FLAG science-based targets for the first time have up to two years after submission to meet the no-deforestation commitments SBTi outlines. However, all companies face an absolute deadline of Dec. 31, 2030, for submissions made after 2028.

The deforestation cutoff date remains 2020 or earlier. Where that is not feasible, companies must adopt a cutoff no later than three years before submitting FLAG targets for validation.

These provisions link the deforestation cutoff date 2020 SBTi expectations with broader land sector emissions targets.

Commodity Scope Expands, Disclosures Required

The SBTi FLAG guidance update expands the list of commodities covered under no-deforestation commitments SBTi requires, focusing on those most linked to global forest loss.

Companies must also publish documentation detailing how they will meet those commitments.

The disclosure requirement introduces greater transparency in corporate deforestation targets compliance and strengthens accountability across supply chains.

It also reflects growing scrutiny of supply chain deforestation risk, ESG factors among investors and regulators.

Consultation Informs Revisions

The SBTi said the update followed public consultation and input from technical experts.

Its Technical Council approved the changes, and the Board of Trustees adopted them.

The SBTi FLAG guidance update reflects the role of land use in global emissions and the need for consistent science-based targets and land use sector frameworks.

Focus on Resilience and Implementation

Karl Downey, head of sector standards at SBTi, said land-sector action supports long-term business value and stable commodity supply.

He said companies adopting the updated framework can align FLAG science-based targets with decarbonization strategies while preserving land resources.

The SBTi FLAG guidance update signals tighter expectations for companies managing land sector emissions targets and reinforces the importance of measurable, time-bound action.