POLICY & GOVERNANCE / VOLUNTARY FRAMEWORKS
Science Based Targets initiative
SBTi — Climate target-setting aligned with 1.5°C
The framework that converts a climate commitment into a validated, science-aligned target. Increasingly a de facto requirement for large corporate supply chains — and accessible for SMEs via a free, simplified pathway.
In 30 seconds
SBTi (Science Based Targets initiative) is a partnership between CDP, the UN Global Compact, World Resources Institute, and WWF. It provides a framework for companies to set emission reduction targets consistent with limiting global warming to 1.5°C. Over 7,000 companies have committed globally.
SBTi validates targets — it does not validate performance. A company with a validated SBTi target has committed to a credible pathway. Whether it delivers on that commitment is tracked separately through annual CDP reporting and internal management systems.
For land and agriculture: The FLAG (Forest, Land and Agriculture) sector guidance is the most relevant development — it acknowledges that land-based organisations have both emissions and removals, and that managing land well is part of the net-zero solution, not just the problem.
2026 updates
- Absolute Contraction Approach recalibrated (April 2026): near-term reduction rates are now calibrated to base year and target timeline rather than a single fixed rate. For a 2025 base year and 2030 target, the minimum Scope 1+2 reduction drops from roughly 42% to around 21%, roughly halving the near-term bar for new target-setters. Long-term net-zero ambition is unchanged.
- FLAG Guidance v1.2 (March 2026): removes the fixed 2025 no-deforestation deadline in favour of a two-year post-validation window with a hard 2030 backstop; seven commodities are mandatory. Directly relevant to farms, estates, and food businesses.
- Corporate Net-Zero Standard V2 (in development): the largest structural change to target-setting in a decade is being developed, expected to make new targets mandatory and to add transition-plan and ongoing-emissions elements. Timeline and specifics are not yet final — treat as directional and check the current SBTi position before relying on any date.
Scope 1, 2 and 3 — the foundation
SBTi target-setting requires a GHG Protocol-aligned emissions inventory across all three scopes. Understanding the scopes — and which ones are material for your organisation — is the prerequisite for everything else.
Examples: Fuel combustion (vehicles, boilers, generators), process emissions (industrial processes), fugitive emissions (refrigerants, methane from livestock)
Always material. For agricultural organisations, livestock methane is the primary Scope 1 item.
Examples: Electricity used in offices, manufacturing, cold storage. Heat from district heating systems.
Material where electricity consumption is significant. Organisations on 100% renewable electricity tariffs have minimal Scope 2.
Examples: Purchased goods and services (upstream supply chain), business travel, employee commuting, downstream use of sold products, end-of-life treatment, investments
Often the largest category — typically 70–90% of a company's total footprint. SBTi requires Scope 3 targets when Scope 3 exceeds 40% of total emissions.
Three pathways
Which pathway applies depends on your organisation's size, sector, and starting position. The SME pathway is free and accessible; the corporate pathway requires formal validation; the FLAG pathway is specifically designed for land sector organisations.
Organisations over 500 employees or over $50M revenue
- 1.Commit: submit a letter of commitment to SBTi (free)
- 2.Develop: calculate Scope 1, 2, and 3 emissions baseline using GHG Protocol
- 3.Submit: submit targets for validation (validation fee applies)
- 4.Validate: SBTi reviews and approves targets (typically 3–6 months)
- 5.Disclose: publish approved targets and report annually on progress
Under 500 employees AND under $50M revenue (approximation — check current SBTi eligibility)
- 1.Commit: sign the SME Climate Hub commitment (halve emissions by 2030, net zero by 2050)
- 2.Measure: calculate your Scope 1 and 2 emissions (Scope 3 optional but encouraged)
- 3.Act: develop a climate action plan with year-on-year reduction targets
- 4.Report: submit annual progress via the SME Climate Hub reporting tool
Forest, Land, and Agriculture sector organisations — farms, estates, food companies, forestry
- 1.Scope 1 and 2 targets follow the standard pathway
- 2.FLAG-specific targets cover land-related emissions and removals separately from fossil fuel emissions
- 3.Targets must be set for both fossil fuel-based emissions and land sector emissions/removals
- 4.Forest protection and restoration targets align with Kunming-Montreal GBF
FLAG — Forest, Land and Agriculture
The most significant SBTi development for landscape organisations, farms, and food businesses. Published 2022; required for organisations where land sector emissions exceed a materiality threshold.
Why land sector emissions are different
Fossil fuel emissions are permanent additions to the atmosphere. Land sector emissions (from deforestation, soil degradation, livestock) can be reversed — forests grow back, soils sequester carbon, methane has a shorter atmospheric lifetime than CO2. SBTi's FLAG guidance acknowledges this by treating land sector emissions and removals separately from fossil fuel emissions.
What FLAG requires for land-owning organisations
Organisations in forest, land, and agriculture must set separate targets for: (1) fossil fuel-based Scope 1/2 emissions (same as any company), (2) land-related emissions (e.g. livestock methane, soil N2O, land use change), and (3) land-based removals (carbon sequestration through forests, improved grassland management, soil carbon). The combination must deliver a net-zero land sector outcome by 2050 at the latest.
The Hampton Estate example
A land-owning estate with a beef herd, woodland, and regenerative pasture sits squarely in FLAG territory. Scope 1 includes methane from cattle (enteric fermentation) and fuel combustion. The land sector element includes both the methane emissions and the carbon sequestration from the woodland and mob-grazed pasture. A Woodland Carbon Code project and a soil carbon baseline would together build the measurement infrastructure for a credible FLAG target.
How SBTi and CDP relate
The two frameworks are closely linked — by design. Understanding the relationship helps you sequence them deliberately rather than being led by either.
The Pandion view on SBTi
The target is not the achievement.
SBTi validates that your target is scientifically aligned with 1.5°C. It does not validate that you will deliver it, or that you have delivered it. Annual CDP reporting provides the progress data, but verification of actual emission reductions is limited. Treat a validated SBTi target as a commitment that needs to be backed by genuine management action — not a credential that stands alone.
Scope 1 first, always.
Before setting any SBTi target, you need a Scope 1 emissions inventory. This is the irreducible prerequisite — and for many organisations the most revealing step. For a farm or estate, Scope 1 typically means: fuel combustion (vehicles, boilers), livestock methane (cattle, sheep), and soil N2O (fertiliser application). Knowing these numbers before committing to SBTi means your targets will be credible rather than aspirational.
The SME pathway is accessible — start there.
For organisations under 500 employees, the SME pathway via the SME Climate Hub is free, relatively simple, and does not require SBTi formal validation. The commitment (halve by 2030, net zero by 2050) is consistent with SBTi principles. It is a credible, defensible starting position that demonstrates ambition without requiring the full validation infrastructure.
FLAG is where it gets interesting for landscape organisations.
The FLAG guidance is the most relevant development for farms, estates, and food businesses. It acknowledges that land sector organisations have both emissions and removals — and that managing the land well can be part of the net-zero solution, not just the problem. For an estate with well-managed woodland and regenerative pasture, FLAG creates the framework to quantify and claim that contribution.
Where to go next
CDP deep dive
How SBTi and CDP reinforce each other — and the commercial relationship between them
TNFD & LEAP
SBTi covers climate; SBTN covers nature — TNFD is the disclosure framework that connects both
Target setting
How SBTi targets connect to corporate strategy and the broader sustainability journey