In September 2022, the GHG Protocol published the draft 'Land Sector and Removals Guidance' to support companies in measuring and reporting FLAG emissions. The new 'Land Sector and Removals Guidance' is the first to provide clear guidance on how companies should account for emissions and carbon storage from agricultural practices, land use change and biogenic products. This guidance is aimed in particular at companies in the agriculture, forestry and energy sectors and supports them in assessing their climate impact in Scope 1, 2 and 3.

Many sustainability teams are unsure how to prepare for these new standards. In this article, we explain why the Five Glaciers team advises affected companies to prepare early for FLAG emissions accounting in order to facilitate the application of the new reporting standards.

Why is the GHG Protocol so important?

The focus on FLAG emissions (agriculture, forestry and other land use, AFOLU) is increasing worldwide, as around 37% of the earth's surface is used for agriculture and 22% of global emissions are attributable to AFOLU. Pressure from NGOs and regulatory authorities to consider nature-related impacts is growing steadily. Examples include the introduction of science-based targets for nature, the EU Deforestation Regulation and the EU Nature Conservation Act.

What does this mean for agricultural businesses?

Although the final guidance is not expected until 2025, reporting on FLAG emissions is already a requirement for companies that want to set ambitious climate targets under the Science-Based Targets Initiative (SBTi). The GHG Protocol guidance enables companies to understand more precisely how their agricultural activities affect greenhouse gas emissions and what potential exists for CO2 removal. This is crucial for the development of credible reduction strategies that not only reduce emissions but also promote carbon sequestration in soils and forests. Compared to previous approaches, the GHG Protocol now provides systematic guidance on how to account for emissions and removals based on primary supplier data rather than crude, expenditure-based estimates.

The next steps to improve emissions assessments

To further improve emissions assessments in the agricultural sector, companies should:

• Collect supplier-specific data: The focus on weight-based emission factors allows for a more accurate assessment than traditional methods that only consider spend.
• Include carbon removals: The guidance supports companies in correctly recording and reporting removals from land use, such as through reforestation, and biogenic products.
• Set emissions targets and track progress: Guidance allows companies to set realistic emissions targets that take into account their entire agricultural activities and track the progress of their reduction measures.

The application of this guidance is not only necessary to meet regulatory requirements, but also to be perceived as a sustainable pioneer in the industry. The "Land Sector and Removals Guidance" is due to be published in 2025 and the pilot version already offers the opportunity to experiment with the methods and be a pioneer in the specification of agricultural emissions inventories.

We keep you up to date

We're staying tuned - let's tackle the transformation towards a more sustainable agriculture together. If you have specific questions about balancing the environmental impact of your agricultural activities, please contact Five Glacier's experts.