Keep land management and land-use change visible as separate calculation records.
Know whether FLAG applies. Build the inventory if it does.
Measure forest, land and agriculture emissions across your fashion value chain, keep land management and land-use change separate, and prepare the evidence behind your SBTi FLAG target.
Carbon Trail supports assessment and target preparation. SBTi Services makes the final validation decision.
FLAG scope review
Current guidance · V1.2Business contextFashion & retail value chainScreen land-linked materials and commodities
Potential FLAG sources
CottonLeatherViscoseRubber
Measure before deciding
Build a screening inventory first.
Map land-linked materials and calculate FLAG-related emissions before assessing the SBTi threshold.
- 1DetermineScope and threshold
- 2CalculateLM, LUC and removals
- 3PrepareTarget package
Reuse product, supplier, procurement and corporate inventory data you already manage.
Carry boundaries, factors, assumptions and evidence into target preparation.
Trusted by fashion and retail teams
FLAG is not another Scope 3 category. It is a distinct view of land-based emissions.
The same material can carry emissions from how land is managed and from whether land was converted. Carbon Trail preserves that distinction from source record to target boundary.
LM
Land remains in the same useLand management
Emissions and eligible removals associated with agricultural and forestry management within an existing land use.
- Fertiliser and soil emissions
- Manure and livestock sources
- Forest and plantation management
- Carbon-stock changes within the same land use
LUC
Land converts from one use to anotherLand-use change
Carbon-stock losses associated with deforestation or conversion between land-use categories.
- Forest converted to cropland
- Forest or grassland converted to pasture
- Peatland drainage and conversion
- Direct and statistical land-use-change evidence
Use the product and corporate data already in Carbon Trail.
FLAG starts with data your teams already collect. Carbon Trail connects product composition and origin with procurement quantities, suppliers and the corporate reporting boundary, then adds the FLAG classification and calculation context.
- Material composition and weight
- Bill of materials and product volumes
- Country or region of origin
- Supplier and traceability records
- Purchase orders and procurement quantities
- Reporting year and organisational boundary
- Supplier and facility relationships
- Scope 1, 2 and 3 inventory totals
- 1Map commodity and geographyConnect products to land-linked sources.Mapped
- 2Classify LM, LUC and removalsKeep each emissions stream distinct.Separated
- 3Apply factor and evidenceRetain method, source, version and assumption.Traceable
- 4Reconcile to the target boundaryCheck coverage without double counting.Reviewable
One governed output
FLAG inventory
- Land management
- Separated
- Land-use change
- Separated
- Removals
- Reported separately
- Energy & industry
- No double counting
See every FLAG calculation as an evidence record.
Product LCAs calculate LM and LUC emissions per product, then roll them up using product volumes. For non-product activity, Carbon Trail applies FLAG emission factors directly. Both routes remain traceable in the corporate inventory.
ProductsLCA calculates LM + LUC per productAggregate by product volume
Non-product activityActivity data + direct FLAG factorsAdd to the same inventory
FLAG inventory · FY2025
Inventory sourceCalculation routeConnected basisLM tCO₂eLUC tCO₂eEvidence
Cotton T-shirtProduct LCA × volumeMaterials · origin · units1,284166Primary + secondary
Leather footwearProduct LCA × volumeMaterials · origin · units642218Origin under review
Viscose shirtProduct LCA × volumeMaterials · origin · units31194Supplier evidence
Non-product land activityDirect FLAG factorActivity data · reporting year20758Factor source retained
Move from a reviewed inventory to a target package.
Keep the decisions behind the target visible: base year, boundary, pathway, no-deforestation commitment, factor versions, exclusions and the evidence reviewers need.
Prepare your FLAG targetSBTi FLAG checklistInputs for an SBTi FLAG target submission
- Base-year FLAG inventoryLM, LUC, eligible removals and the underlying evidence
- Target boundary and pathwayCoverage, target years, assumptions and exclusions
- No-deforestation commitmentThe policy and supporting information required by SBTi
- Submission materialsReviewed inputs to file through SBTi Services
Built around the current FLAG process, with the source version kept visible.
SBTi published FLAG Guidance Version 1.2 in March 2026 and is developing Version 2. Carbon Trail keeps framework and factor versions attached to the calculation so teams can review changes instead of burying them in a spreadsheet.
FLAG emissions, plainly answered.
Start with applicability, then build the data and evidence needed for a defensible target.
Does every fashion or retail company need a separate FLAG target?
Not automatically. Under current SBTi FLAG criteria, companies in designated land-intensive sectors must set FLAG targets. Companies in other SBTi sectors must do so when FLAG-related emissions are 20% or more of their combined Scope 1, 2 and 3 emissions. A screening inventory is often needed before a fashion or retail company can assess that threshold.
What is the difference between land management and land-use change emissions?
Land management emissions arise while land remains in the same use, including agricultural and forestry activities such as fertiliser application, manure management and changes in soil or biomass carbon. Land-use change emissions arise when land is converted from one use to another, such as forest converted to cropland or pasture. FLAG inventories need to keep these sources distinguishable.
Can Carbon Trail reuse our existing product and corporate data?
Yes. Carbon Trail uses product LCAs to calculate land management and land-use change emissions for individual products, then aggregates them using product volumes. For non-product activity, it uses activity data with FLAG emission factors directly. Both routes feed the corporate FLAG inventory while retaining their source context.
Does Carbon Trail submit or approve an SBTi FLAG target?
Carbon Trail helps teams prepare the inventory, target inputs, boundary, evidence and review package needed for a FLAG target submission. Final submission and validation are handled through SBTi Services, and approval remains with SBTi Services.
What if our FLAG-related emissions are below the 20% threshold?
Current SBTi guidance recommends, but does not require, a separate FLAG target below the threshold for companies outside designated sectors. If a separate FLAG target is not set, FLAG-related emissions still need to remain covered by the company’s energy and industry target boundary under the applicable SBTi criteria.