You’ve set a FLAG target. Now what?

The forest, land, and agriculture (FLAG) sector is both one of the largest contributors to climate change and the sector most likely to be adversely affected by it. Representing 22% of global greenhouse gas (GHG) emissions, it is the third highest-emitting sector after energy and industry. The production of agricultural crops is also highly sensitive to climate factors like temperature and rainfall, making it especially vulnerable to climate change.

For this reason, the Science Based Targets initiative (SBTi) has developed guidance for companies in land-intensive FLAG sectors to set targets to reduce GHG emissions and enhance carbon sinks in their operations and supply chains. SBTi’s FLAG Guidance helps companies in the food production, food and beverage processing, food and staples retailing, and tobacco sectors set targets in line with 1.5°C of warming based on leading climate science.

As of July 2025, over 300 companies have set FLAG targets with SBTi. This includes more than 40 from Global Canopy’s Forest 500 list of the most influential companies and financial institutions exposed to deforestation risk. It is anticipated that approximately 800 companies will set FLAG targets, with more than half coming from the food and beverage processing sector. 

No-deforestation commitments are essential to achieving FLAG targets

Eliminating deforestation and ecosystem conversion from supply chains is the single most impactful action a company can take towards meeting its FLAG target. Deforestation alone accounts for up to 80% of the land use change mitigation capacity in the FLAG sector.

To set a FLAG target, a company must plan to eliminate all new land use change emissions in its operations and supply chains within 5-10 years. To support rapid progress towards that goal, a company is also required to make a commitment to halt deforestation in its primary deforestation-linked commodities across all emission scopes by 31 December 2025. 

The SBTi recommends that companies set no-deforestation commitments in line with the Accountability Framework, a roadmap for companies to address deforestation, ecosystem conversion, and human rights in their commodity supply chains.

Many FLAG sector companies lack no-deforestation policies

Of the 300+ companies with validated FLAG targets, only 151 (50%) have set a public no-deforestation commitment in line with their FLAG submission.  

For companies to align their no-deforestation commitments with the Accountability Framework, their commitments should be fully reflected in company policies. In turn, these policies should be embedded into operations and internal management systems — informing supplier codes of conduct, procurement protocols, contracts, and monitoring and reporting systems.

In contrast, the absence of a no-deforestation policy poses a significant risk to companies, as such policies are essential for driving the actions needed to achieve climate and FLAG targets. Without a strong no-deforestation policy in place, internal company teams lack the foundation needed to make informed procurement and operational decisions necessary to meet the company’s commitments.

Furthermore, key elements of a credible no-deforestation policy, such as cutoff dates and definitions, are critical for effective monitoring and supplier management. Without this clarity, and the corresponding data collection processes, companies are unable to report on their progress accurately, make credible claims, or conduct proper due diligence to inform future actions.

Companies with strong no-deforestation policies are well positioned to meet FLAG targets

Clear policies are crucial in guiding the implementation of deforestation-free supply chains, enabling companies to effectively identify and reduce land use change associated with their businesses. In turn, this supports emissions reductions and progress towards climate goals.

Credible no-deforestation policies include clear cutoff dates, as seen in JDE Peet’s 2024 Forest Policy, as well as commitments to protect the rights of Indigenous Peoples and local communities, as seen in Kraft Heinz’s 2023 Policy on Palm Oil Usage and Procurement. Additionally, strong policies should include the long-term protection of forests and provide details on how a company intends to monitor and verify progress and performance.

Setting a strong, credible policy is the first step towards achieving a deforestation-free supply chain and meeting FLAG targets.

The Accountability Framework supports companies to set and achieve their no-deforestation commitments

The Accountability Framework initiative (AFi) provides several tools and resources to support companies to set their policies, in addition to a cohort of delivery partners with expertise and experience supporting companies that produce or source agricultural and forestry products. With clear guidance from the AFi and its partners, companies have the resources they need to set clear, ambitious targets, and achieve them.

For more information, see the AFi Explainer on Setting and Implementing No-Deforestation Commitments under SBTi FLAG.