Hi,
We are setting new targets for a food and beverage processing company due to growth and also to take into account the new FLAG guidance.
As a food and beverage processing company they had to set a FLAG target even though their FLAG emissions are marginal relative to their overall emissions footprint. The company’s FLAG emissions will fall in their scope 3 category 1 from the suppliers of FLAG based ingredients e.g. fruit juice, sugar and oats.
Due to data availability the company’s FLAG emissions have been calculated on an overall basis rather than separating LUC and Land management emissions (LUC non-LUC and removals all in one emission factor). Essentially, FLAG emissions are included in product carbon footprint using emissions factors from a generic database or industry research. These have been separated out from non-FLAG based emissions to give FLAG emissions number and non-FLAG emissions number.
We understand the preference of SBTi/GHGP to have more granular data on FLAG emissions and a breakdown of LUC, Land management and removals however this is not possible due to data availability. The company is working to obtain more granular data but there is no timeline on this process.
This company would fall within the FLAG SECTOR PATHWAY. We see from the SBTi FLAG guidance (section 3.3.3, page 44) the requirements:
Base-year emissions must include the following (see Section 3.1):
• Land management/land use emissions.
• LUC emissions (dLUC/sLUC).
• Removals.
It also says that the data needs in the FLAG tool only require the FLAG base year and FLAG target year, with a disaggregated LUC emissions from other FLAG (non-LUC) emissions (tCO2e) only required in the FLAG COMMODITY PATHWAY.
Are we correct in thinking that SBTi will accept FLAG emissions at an overall level for the SECTOR PATHWAY due to data availability constraints?