Helping Kalsec Crack the Code of FLAG Emissions
Kalsec, a global supplier of natural extracts for food and beverages, has a long-standing commitment to sustainability demonstrated by its B Corp Certification. This year, Kalsec took another major step forward by adopting Science-Based Targets (SBTi) to align its emissions reductions with the 2030-2050 Paris Agreement goals. However, the real challenge was solving the puzzle of SBTi for Forest, Land, and Agriculture (FLAG) emissions, which only a handful of companies had attempted before. It was our privilege to work with the Kalsec team to develop an approach and methodology to successfully calculate, collect, and submit FLAG emissions.
The Challenge of FLAG Emissions
FLAG emissions were introduced under SBTi to account for greenhouse gas (GHG) emissions from land management and land use change. These emissions are especially relevant for companies with ties to food, fiber, wood, or bio-based supply chains, and they cover Scope 1, 2, and 3 emissions related to land management and agricultural activities. Still, they can be challenging to collect for the following reasons:
Complex Supply Chains: FLAG emissions often originate deep in the supply chain (e.g., farming, deforestation, or livestock management), where data visibility is low, and suppliers may not track or disclose their environmental impact.
Data Availability: Many agricultural or land-based operations, especially in developing regions, lack standardized systems for collecting emissions data or may not have digitized records at all.
Lack of Consistent Methodologies: Unlike energy-related emissions, which have well-established calculation protocols, FLAG emissions require diverse methodologies for different types of land use and farming practices, making standardized reporting difficult.
Dynamic and Regional Variability: Emissions from land-use change, like deforestation or reforestation, depend on geographic, climatic, and temporal factors that vary widely and change over time.
Newer Reporting Requirements: Because FLAG targets are a relatively new requirement, many companies are still learning what data is needed, how to collect it, and how it fits into broader carbon accounting systems.
Even sustainability leaders have been seeking guidance on best practices in this emerging field. However, Kalsec was eager to understand the impacts of its full supply chain, so we took on the challenge of developing defensible approaches that SBTi would accept.
Pioneering an Approach to FLAG Emissions
While our client had data for the processing stage of its products and equipment at their farm, the emissions from their own growing space and suppliers were unknown. Between supplier outreach for primary data and estimations from available average datasets, we aligned our methodologies with SBTi's stringent requirements. The process involved both critical thinking and curiosity to learn about a specific niche of emissions and engage with farmers to better understand the unique processes used to supply Kalsec with raw materials.
After a rigorous six-month process, Kalsec became one of a small group of companies in the world to successfully incorporate FLAG emissions into its SBTi disclosure, and it achieved the "Target Set" designation on SBTi's public dashboard — a Michelin-star equivalent in sustainability.
Setting Others Up for Success
This work isn't just important to Kalsec. It paves the way for other companies that want to account for agricultural or forest emissions, including food and packaging companies. With agriculture contributing approximately 11% of global emissions, FLAG emissions can no longer be ignored. Even if a company doesn't subscribe to SBTi, FLAG emissions must be taken into consideration if any of a company's supply chain partners subscribe (or report to) SBTi.
We're excited to unlock this capability for other organizations. Moving forward, we'll be looking at ways to improve farm practice tracking, expand supplier engagement for better primary data, and drive continuous improvements in agricultural sustainability.
Kalsec's journey showcases what's possible when companies commit to ambitious sustainability targets. If you'd like support in your own sustainability journey, connect with us to explore how your company can get started.
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