SBTi v2 for food and beverage: FLAG methodology, agricultural Scope 3 and supplier evidence

Most large food and beverage companies are Category A with very high Scope 3 share, often above 90 percent, and meet the FLAG materiality threshold.

• Purchased goods and services across crops, dairy, meat and packaging.
• Agriculture and land use change (covered under FLAG).
• Upstream transportation across long supply chains.

• Supplier specific data for the largest agricultural inputs.
• Documented methodology for land use and agricultural emissions, aligned to the FLAG guidance.
• Source linked numbers for top branded and own brand SKUs.

• Engage Tier 1 suppliers on regenerative and low carbon sourcing.
• Build climate criteria into agricultural buying programmes.
• Track supplier targets across the most material crops, including FLAG specific commitments where they exist.

Want a personalised view for your company? Run the SBTi v2 Impact Checker.

FLAG targets typically cover land management (cropland, grazing, forestry), land use change (including deforestation related emissions) and removals from improved land management. The methodology and accounting differ from typical energy and industry targets, so the underlying inventory work is usually a separate stream.

SBTi expects companies in scope to set both a FLAG target and an energy and industry target, alongside a public commitment to no deforestation by 2025 with a documented cut off date. Even if you are not yet ready to submit, the practical implication is that your Scope 3 inventory needs to cleanly split FLAG and non FLAG emissions and your supplier data work needs to cover both.