If your business processes food, uses biomass, purchases agricultural raw materials or reports CO₂ removals, a significant change is on its way. From 1 January 2027, the Land Sector and Removals Standard (LSRS) will apply as a mandatory international standard for carbon accounting – and it brings considerably more than an additional reporting layer.
The LSRS is the first sector-specific GHG Protocol standard addressing emissions and removals from land use, land-use change and biogenic CO₂ flows. Until now, no international standard existed in this area, resulting in emissions from agriculture and biomass being systematically under-reported or misclassified.
The LSRS does not replace the existing Corporate Standard or Scope 3 Standard, but is a mandatory supplement for any company that falls within its scope. It is a binding additional requirement, not an optional add-on.
The LSRS applies to businesses with significant land-related activities – both in their own operations and in the value chain. In practice, this covers:
Note: forestry is not covered by LSRS V1.0 for the time being, but businesses with forestry activities pursuing SBTi FLAG targets are advised to report voluntarily.
1. New accounting categories for land emissions
The LSRS introduces detailed reporting categories that require businesses to account for their emissions far more precisely. These include emissions from land-use change (e.g. deforestation), net changes in soil carbon stocks, and production emissions such as methane from rice cultivation or nitrous oxide from fertiliser use. This demands not only new data but also a revision of existing GHG inventories.
2. Biofuels are no longer CO₂-neutral
This is one of the most far-reaching shifts. Under the LSRS, biofuels and biomass may no longer be treated as CO₂-neutral. Combustion releases the same quantity of CO₂ as fossil fuels. Businesses that produce or use biofuels must therefore include the full upstream lifecycle emissions in their GHG inventory. This has direct consequences for companies that have relied on biofuels as a low-emission solution.
3. Strict rules for CO₂ removals
Reporting on CO₂ removals is optional, but the requirements are stringent. Covered techniques include DACCS, BECCS, carbon sequestration in agricultural soils, reforestation, agroforestry and biochar. Removals must be physically traceable to at least the region of origin or production unit; accounting claims detached from the physical chain do not constitute evidence. They must also be permanent – otherwise they are reported as emissions.
The LSRS and the SBTi FLAG framework (Forest, Land and Agriculture) are closely intertwined. In March 2026, SBTi published an updated FLAG Guidance V1.2, specifically designed to align more closely with LSRS V1.0. Companies that have already set FLAG targets using the draft LSRG (Land Sector and Removals Guidance) from 2022 have until the end of their five-year review period to update these in line with the revised standard.
Differences remain, however. The LSRS applies to all businesses with ‘significant’ land-related activities, while FLAG only becomes mandatory when land emissions exceed 20% of the total carbon footprint. Moreover, SBTi FLAG requires companies to commit to a no-deforestation pledge for high-risk commodities, which the LSRS does not.
The greatest challenge lies in data quality and traceability. This calls for a targeted approach:
The LSRS is not an optional add-on. It is a binding requirement.
The LSRS has long been anticipated and is now a reality. Pantarein supports businesses in translating the new standard into concrete steps – from an analysis of your current GHG inventory to a plan for supplier engagement and traceability. We also actively monitor LSRG publications, database updates and SBTi guidance, so that you always work with the most current insights.
Want to know where your organisation stands in relation to the LSRS? Contact us at mail@pantarein.be.
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