The Greenhouse Gas (GHG) Protocol has introduced its new Land Sector and Removals (LSR) Standard, aimed at resolving one of the most complex and inconsistent areas in corporate greenhouse gas accounting: emissions and removals related to land use, land‑use change, and agriculture.
For organisations with agricultural supply chains, land ownership, or exposure to land‑based commodities, this standard fills a long‑standing gap. It provides a globally recognised, consistent framework for quantifying, reporting, and tracking land‑sector emissions and CO₂ removals.
Why the land sector matters?
Until now, reporting of land‑sector emissions has often relied on:
- Internally developed methods
- Assumptions and inconsistent practices
- Partial or incomplete inclusion of land‑sector activities
This lack of harmonised guidance led to:
- Under‑reporting
- Reduced comparability between organisations
- Divergent interpretations of land‑sector impacts
The LSR Standard directly addresses these issues and clarifies how organisations must account for:
- Emissions from land management and land‑use change (FLAG)
- CO₂ removals in land and geological carbon pools
- Emissions and removals related to biogenic products across the value chain
- Selected technological removals, such as direct air capture with geological storage
Importantly, the LSR Standard works alongside the existing GHG Protocol Scope 3 Standard, supporting full integration of land‑sector impacts into broader emissions inventories.
What has changed with the Land Sector and Removals standard?
The publication of the LSR Standard does not introduce new emission categories. Instead, it:
- Clarifies how land‑sector emissions and removals should be measured and reported
- Replaces bespoke methodologies with a common, credible reference framework
- Supports transparency and consistency across reporting entities
- Takes effect on 1 January 2027, with additional guidance to follow in 2026
The SBTi‑FLAG (Forest, Land and Agriculture) framework provides a dedicated structure for companies in the agriculture, forestry and food sectors to separately account for and reduce land‑use‑related emissions—such as deforestation, manure, and soil emissions.
If your organisation operates in the food or agrifood sector, you are required to map all FLAG‑related emissions. Without reporting FLAG emissions, it is not possible to set science‑based targets.
For companies outside these sectors, an additional requirement applies: if more than 20% of your total emissions (scope 1–3) originate from land‑related activities, you must set a FLAG target on top of your energy and industry (fossil fuel) targets under SBTi.
How LSR and FLAG complement each other
The LSR Standard provides clarity and consistency in reporting biogenic CO₂ emissions and removals—crucial for understanding the full climate impact of land‑based activities. It ensures that organisations measure and report land‑sector emissions using a transparent and harmonised framework.
The FLAG framework supports companies in setting science‑based targets to reduce land‑related emissions, aligned with the global ambition to limit temperature rise to 1.5°C.
Together, these standards enable organisations to accurately measure, report and set credible targets for both emissions and removals—helping them reduce their overall impact on the climate.
SBTi just updated its FLAG Guidance. Read the full article on the SBTi-website.
Who should pay attention?
The LSR Standard is relevant for organisations that:
- Own, manage, or control land
- Source agricultural or land‑based commodities
- Have land-use change impacts embedded in their supply chain
- Plan to include natural or technological removals in their climate strategy
Even if land‑sector emissions are currently reported within Scope 3, the Standard introduces stricter expectations regarding:
- Boundary setting
- Treatment of removals
- Data quality and estimation methods
What should organisations do now? Recommended next steps
- Assess materiality of land‑use and land‑use‑change emissions
- Review current methodologies used for estimating emissions
- Identify gaps between existing practice and LSR Standard requirements
- Plan implementation for future reporting cycles (from 2027 onwards)
Because land‑sector accounting is technically complex, organisations should consult the official Greenhouse Gas Protocol documentation for detailed methods, definitions, and guidance.
