Global Canopy’s response to SBTi consultation on FLAG targets: the 2020 cutoff date is key to a strong deforestation commitment

Global Canopy has responded to the Science Based Targets initiative’s consultation on FLAG targets, calling for the 2020 cutoff date integral to deforestation targets to be maintained. 

The SBTi was established in 2015 with the goal of enabling companies to play their part in combating the climate crisis. In 2022, it launched guidance to encourage businesses to take science-based climate action by setting forestry, land-use and agriculture (FLAG) climate targets to reduce land-based emissions and increase carbon removals. Over 260 companies have set FLAG targets.  

Today, companies with FLAG targets must commit to eradicate deforestation from their supply chains by the end of 2025. As the year end approaches, the SBTi consulted on updating the criteria relating to deforestation commitments, including cutoff and target dates.

A cutoff date indicates that the commodity covered by the commitment may not be produced on land subject to deforestation or conversion since that date. A target date is the year that the company commits to have fully achieved its commitment.

The SBTi proposals and Global Canopy’s responses are below: 

Requirement that deforestation commitment target dates be within two years of the company’s submission of targets for SBTi validation, and no later than 31 December 2030

We disagree with this proposal. This proposal may unintentionally discourage target setting until 2028 – slowing company action in the short term.

The SBTi could put 2030 forward as the ‘latest target date’ but it should emphasise that this is in the context of failure to achieve science-based 2025 targets, so entities working toward post-2025 targets are already in ‘overshoot’ and should approach the 2030 date with great urgency. 

Several global goals on nature – including the Glasgow Leaders’ Declaration on Forests at COP26  and the Global Biodiversity Framework – call for ambitious action to eliminate and reverse deforestation by 2030. As SBTi develops its approach to target dates beyond 2025, it should also consider what levels of ambition are necessary to ensure those goals are met.  

Require that cutoff dates predate the first FLAG deforestation commitment submission date 

We agree. A cutoff date is an essential component of a strong deforestation commitment. It is crucial that corporate deforestation commitments have a cutoff date of 2020 or earlier. This incentivises action to eliminate deforestation from supply chains quickly or face a significant remediation bill. 

Aligning with the European Union Deforestation Regulation (EUDR) cutoff date of 31 December 2020 supports common expectations for companies in forest risk supply chains. 

Require companies with existing FLAG deforestation commitments to retain existing cut-off dates or set a cut-off date that predates previous deforestation commitments 

We support this proposal. Once a cutoff date has been set, it should not be allowed to slide. To keep the playing field level, a cutoff date of 2020 or earlier should apply to all companies, whether they have pre-existing deforestation commitments or are preparing to publish new ones.

Align with EUDR regulations by requiring companies to include cattle, cocoa, coffee, palm oil, rubber, soy, and timber in deforestation commitments if those commodities contribute over 5% of the company’s total gross FLAG emissions

We strongly agree. SBTi should align with the EUDR’s regulatory scope so that all the key forest risk commodities are included.   

Require companies to detail how they will deliver deforestation commitments

We strongly agree. Transparent reporting of progress towards targets increases accountability, supports sharing of best practices and encourages collective action. Implementation and reporting accounts for 75% of a company’s total score in Global Canopy’s annual Forest 500 assessments of the 500 most influential companies in the deforestation economy.