Getting an SBTi FLAG Target Validated: A Realistic MSME Timeline and Cost

Published 2026-05-06.

The Science Based Targets initiative's Forest, Land and Agriculture (FLAG) guidance sets how companies with land-intensive emissions set science-based targets. It is a credible target for MSMEs in agri, food, and forestry value chains.

Who should consider FLAG

Food processors with crop sourcing
Cotton, jute, wood-based MSMEs
Leather and dairy companies
Pulp and paper

If your supply chain touches land, a FLAG target gives you a more accurate target than a standard SBTi target alone.

What FLAG requires

Component	Detail
FLAG inventory	Land-use change, removals, biogenic stocks
1.5°C target	Absolute reduction in FLAG emissions in line with the FLAG pathway
FLAG sub-target	Commodity-specific pathways where available
Net-zero year	No later than 2050
Removals	Limited use, must be additional

Realistic timeline

Months 1–3

Baseline FLAG inventory. Includes land-use change for the past 20 years for sourced commodities. Use IPCC AFOLU defaults.

Months 4–6

Set targets. Run scenario modelling against SBTi tool.

Months 7–9

Submit commitment letter (free).

Months 10–18

Develop full target submission (plus internal time).

Months 19–24

Validation by SBTi (fee per SBTi's current schedule). Revisions are common.

Cost summary for MSME

Item	Cost
SBTi commitment	Free
SBTi validation fee	Per SBTi's current fee schedule
Internal team time	Significant, especially for the FLAG inventory
External consultant (optional)	Varies
Software	See Senseible pricing
Total realistic	Mostly internal time; budget it before you commit

What it unlocks

Eligibility for some ESG-linked working capital products
Stronger standing with large food and consumer-goods buyers that have their own FLAG targets
A stronger case for concessional climate finance
Higher CDP score → buyer scorecard win

A validated SBTi FLAG target is a strong signal an Asian agri MSME can send to global buyers. The cost is real, so weigh it against what your buyers ask for.