• SBTi is seeking corporate evidence to shape Version 2 of its Forest, Land and Agriculture Standard, with a development process expected to run for more than 12 months.
• More than 400 companies already have FLAG targets, while the sector remains the world’s third-largest source of emissions after energy and industry.
• Companies should continue using current FLAG Guidance, while applying new Corporate Net-Zero Standard V2 tools such as absolute contraction and the best-efforts framework.

The Science Based Targets initiative is calling on companies to help shape the next version of its Forest, Land and Agriculture Standard as pressure grows on food and land-based businesses to strengthen climate plans.

SBTi has launched a call for evidence alongside virtual stakeholder meetings. The process will feed into Version 2 of the FLAG Standard and examine how companies are implementing existing science-based targets.

Businesses in regions central to agricultural supply chains are being particularly encouraged to participate. These include companies operating across Latin America and Southeast Asia.

Expressions of interest for the stakeholder meetings remain open until September 8. The formal call for evidence closes on October 8.

FLAG rules move into next phase

The review will examine the different conditions facing companies across agricultural and land-based value chains.

SBTi said it wants evidence covering geographic, environmental and regulatory differences. It will also consider supply chain structures, commodity exposure and practical implementation challenges.

The process follows the publication of SBTi’s Corporate Net-Zero Standard V2 in June 2026.

That standard introduced a broader target-setting framework. It categorizes companies according to factors including market, size and country. It also introduces five-year target review cycles and more options for companies setting emissions reduction targets.

A hierarchy now guides how companies should implement those targets.

SBTi plans to assess how these approaches could apply to FLAG businesses. It will also consider alignment with the Greenhouse Gas Protocol Land Sector and Removals Standard.

For companies already developing FLAG targets, SBTi is not recommending a pause.

Businesses can continue setting targets under FLAG Guidance Version 1.2. They can also use elements introduced through the revised Corporate Net-Zero Standard.

These include the absolute contraction approach and the best-efforts framework for pursuing targets.

Climate and business risks converge

The FLAG sector has become a growing focus for corporate climate governance because of both its emissions footprint and exposure to physical climate risks.

It is the third-largest emitting sector globally after energy and industry, according to SBTi.

Agriculture and land-based businesses also face increasing disruption from extreme weather. At the same time, companies must manage higher costs, evolving regulation and greater scrutiny from investors and other stakeholders.

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More than 400 companies have already established FLAG targets.

For businesses with agricultural supply chains, revisions to the standard could affect emissions accounting, transition planning, procurement and the credibility of corporate net-zero commitments.

David Kennedy, Chief Executive Officer at the Science Based Targets initiative, said: “The FLAG sector has a key role in addressing the climate crisis. There has been much corporate activity in this space, with innovation and learning. With this call for evidence, companies can share their experience and shape an updated FLAG approach that will support farming transformation in the next phase of corporate climate action. More than 400 companies already have FLAG targets and are managing transition risk, building long-term resilience, and meeting stakeholder and investor expectations. An updated FLAG approach that best reflects opportunities and challenges for corporate climate action will allow these companies and many more to progress on their journey. This will be good for business and make a vital contribution to achievement of international climate objectives.”

More than a year of standard development

SBTi expects development of FLAG Standard Version 2 to take more than 12 months.

The process will follow its 2026-2030 strategy and formal standards development procedures. It will combine implementation experience with evidence submitted by companies.

Public consultations, pilot testing and expert working groups will also form part of the review.

For corporate leaders, the revision carries implications beyond target-setting methodology. Changes could influence how companies assess land-related transition risks, structure emissions reduction strategies and demonstrate alignment with international climate goals.

The inclusion of businesses from emerging and agricultural economies will also matter. Many of the world’s most important FLAG supply chains run through regions where climate exposure, land-use pressures and regulatory capacity differ sharply.

SBTi’s review therefore comes as companies face a broader challenge: converting increasingly detailed climate commitments into workable plans across complex global supply chains.

How the revised FLAG Standard balances scientific ambition with those operational realities will help determine its relevance to the next phase of corporate climate action.