Manage and Mitigate Your Deforestation Liabilities

Transform Risks into Opportunities with Clear, Actionable Data

When we think about greenhouse gas (GHG) emissions, the first culprits that come to mind are usually tailpipes and smokestacks belching pollution into the air. But ten million hectares of land are deforested every year (an area the size of Iceland) and agricultural expansion is the source of 90% of human-caused deforestation.

The numbers are clear: land-use change is a significant source of emissions. However, land-use change can also be reforestation—the restoration of forests to sequester carbon from the atmosphere and store it in soil and vegetation. As the world transitions to a lower-carbon future, reducing deforestation and restoring forests present both challenges and opportunities for managing emissions. 

How you manage land-use change can exacerbate or mitigate climate change.

Example Emissions Reporting

The Role Land-Use Change Plays in Climate Action

“Land use” refers to the various ways we use land, whether as forest, cropland, grassland, wetland, or settlements. A land-use change can significantly alter the amount of carbon that soil and vegetation can store. For example, converting a forest into agricultural land (deforestation) both reduces the carbon stored in vegetation and increases other agriculture-relationed emissions, such as methane from cattle and nitrogen-based emissions from fertilizers. Conversely, reforesting cleared land increases the land’s carbon-sequestering capacity, mitigating climate change and restoring biodiversity, improving soil health, and enhancing water quality. 

It’s important to understand the risks—and potential rewards—that result from the way you use your land.

New Standards for Calculating Land-Sector Emissions and Removals

To help companies make sense of this rapidly changing landscape, the Greenhouse Gas (GHG) Protocol’s upcoming Land Sector and Removals Guidance (LSRG) explains how companies should account for and report GHG emissions and removals from land use and land-use change. 

The GHG Protocol LSRG helps companies quantify the emissions liability of commodities produced on land subject to land-use change over the prior 20 years. That liability applies whether you’re the producer (Scope 1 emissions) or consumer of those commodities (Scope 3 emissions). The guidance also allows companies to assess removals from activities that increase carbon stored in the land.

Deforestation that occurred in the past can create a hidden liability that affects your bottom line for up to 20 years.

Case Study: Accounting for Change

Consider a fast-food company that is required to report on emissions related to purchasing beef products. While the reporting year is 2024, the assessment period spans the previous 20 years (2005–2024). At FLINTpro, we first determine that the land now used for grazing was deforested in 2021. We then model the GHG emissions from that land triggered by the deforestation activity. Those emissions can come from vegetation and soil, and their total is the “emissions liability” assigned to the commodity producers and consumers—including the fast-food company—in the supply chain. The emissions liability is allocated to the year of deforestation and the following 19 years using linear discounting. For example, a total emissions liability of 100 tonnes of CO2 would result in 9.75 tonnes allocated to 2021, 9.25 tonnes to 2022, and so on, down to 0.25 tonnes in 2040.

Ultimately, the 2021 deforestation means that the fast-food company is liable for 8.25 tonnes of CO2 in 2024—even though it did not clear the land itself, and even though the deforestation occurred three years prior to its beef purchase! This example illustrates the importance of careful, well-informed supply-chain decisions.

A firm grasp of two decades of history is mandatory for every paddock, field, and plantation in a supply chain.

The Opportunity in Land Use Change

At FLINTpro, we empower businesses to make data-informed decisions by assessing the emissions impacts of their land use. Just as deforestation increases net emissions, reforestation and restoration offer significant opportunities to lower “net” emissions. 

FLINTpro uses Tier 1 methods, employing global satellite data products and models to help companies quickly prioritize areas for reforestation. We then use more advanced models and refined data to estimate the impact of removals at the higher level of precision required by the GHG Protocol. Through initial FLINTpro assessments, companies quickly prioritize areas for action, then move to high tier assessments if needed. 

We take the worry and guesswork out of quantifying emission liability mitigation opportunities.  

Understand Risks. Maximize Opportunities. Partner with FLINTpro.

Estimating land-use-change emissions is complex, but crucial. At FLINTpro, we use remote sensing data, climate data, and land data as inputs to advanced modeling for a clear picture of your land’s current state, as well as its potential for positive change. By partnering with us, you can confidently make data-informed decisions that mitigate risks and unlock the benefits of carbon sequestration.

Engage with FLINTpro experts to assess the potential benefits of land-use change and contribute to a sustainable future—schedule a demo today at flintpro.com/contact.