From 1 January 2027, any company reporting under the GHG Protocol must account for land emissions and CO₂ removals under the Land Sector and Removals (LSR) Standard if land is a significant part of its footprint. You don't need to own land for that to be true.
| Key information about the LSR Standard | |
|---|---|
| When | Effective 1 January 2027 |
| Who | Companies that report in conformance with the GHG Protocol and whose land sector activities are a "significant" share of their Scope 1, 2 and 3 inventory, plus any company that reports CO₂ removals |
| No land needed | Buying, processing or selling significant amounts of food, fibre, feed or bioenergy is enough. That brings food and beverage companies, consumer brands, retailers and their suppliers potentially in scope |
| Opting out | You can treat your land sector activities as insignificant, but you must disclose and justify that position, and it has to hold up to assurance |
| Link to SBTi | The LSR Standard sets the accounting. SBTi FLAG sets the targets. Every FLAG target needs an LSR-aligned base year |
The tool below takes five minutes. It asks about your reporting, your operations and value chain, your removals, and your SBTi position, then tells you whether the LSR Standard applies to your inventory and whether a FLAG target comes with it.
Many companies with FLAG targets do not themselves farm land: their FLAG emissions sit in Scope 3, in the crops, ingredients, fibre and paper-based packaging they buy.
Work through your assessment in this order:
| Step | Question | What it means |
|---|---|---|
| 1 | Are you in a designated FLAG sector? These are forest and paper products, food production (agricultural or animal sources), food and beverage processing, food and staples retailing, and tobacco | If yes, a FLAG target is required, unless an exemption in step 3 applies |
| 2 | If you are outside those sectors, are your FLAG-related emissions 20% or more of your gross Scope 1, 2 and 3 emissions? | If yes, a FLAG target is required. Below 20%, SBTi only recommends one |
| 3 | Does an exemption apply? Only two exist: a designated-sector company whose land-related emissions are under 5% of its total, or a small or medium-sized enterprise under the SBTi definition | If yes, no separate FLAG target is required. Your land-related emissions still sit inside your energy and industry target |
| 4 | Since when do the SBTi FLAG requirements apply? | Since 30 April 2023, for any company setting targets for the first time, updating them or adding a net-zero target. Companies whose targets predate that add a FLAG target at their five-year review at the latest |
A FLAG target also comes with two other requirements: a separate energy and industry target, and a public no-deforestation commitment with a target date no later than 31 December 2030.
If the answer is close or contested, settle it in writing before you choose a method or partner.