SBTi Launches Consultation to Shape Revised FLAG Standard

The Science-Based Targets initiative (SBTi) has kicked off a public consultation to refine its Financial Sector Greenhouse Gas Accounting (FLAG) Standard. This move underscores the initiative's commitment to enhancing the accuracy and comparability of greenhouse gas (GHG) emissions data reported by financial institutions.

  • Purpose of the Consultation: The consultation aims to gather feedback from stakeholders, including financial institutions, software providers, and sustainability experts, to improve the FLAG Standard's practicality and effectiveness.
  • Key Areas Under Review: The SBTi is seeking input on various aspects of the standard, such as its scope, metrics, and reporting methodologies. This includes the assessment of financed emissions, a critical component for aligning financial institutions' targets with the Paris Agreement.
  • Timeline and Participation: The public consultation is open until March 31, 2023. Interested parties are encouraged to provide their feedback via the SBTi's online response platform.

As enterprises increasingly focus on ESG compliance and net-zero commitments, the revised FLAG Standard is set to play a pivotal role in enhancing the credibility and comparability of financial institutions' GHG emissions data. Software providers specializing in ESG reporting and carbon accounting should monitor these developments to ensure their tools align with the evolving standards.