The GHG Protocol’s Land Sector and Removals (LSR) Guidance was published on 30 June 2026 to help companies apply the LSR Standard, which takes effect on 1 January 2027. Used together, these documents set out how organizations should account for emissions and removals linked to land use. The standard signals higher expectations for the quality, scope and granularity of corporate climate reporting.

The next phase of corporate climate reporting will require organisations to look beyond conventional emissions sources. For businesses with exposure to agriculture, forestry, food, consumer products and other land intensive supply chains, the relationship between business activity, land use and carbon is becoming increasingly relevant to the integrity of their greenhouse gas inventories.

The Guidance sets out methods and practical steps that companies can follow to quantify and report emissions and CO₂ removals arising from land use, land management and carbon removal activities. For organisations, this represents more than an incremental development in carbon accounting. It introduces a more comprehensive view of how land related activities contribute to corporate climate impacts and places greater emphasis on data quality, traceability, calculation methodologies and assurance.

A broader view of the corporate carbon footprint

Land can represent both a source of greenhouse gas emissions and a means of removing and storing carbon. Land use change and land management activities can generate significant emissions, while changes in land management can also influence carbon sequestration and removals.

The LSR framework establishes a structured approach for organisations to account for these impacts. The Guidance covers land use change emissions, land management emissions, biogenic CO₂ emissions, carbon removals from land management, technological CO₂ removals and carbon storage in products.

The implications extend beyond organisations with direct ownership or control of land.

Land related impacts can be embedded within complex value chains. Companies sourcing agricultural commodities, food products, forestry products and other land dependent inputs may therefore need to consider how these activities contribute to their overall climate inventory.

This increases the importance of understanding the source and nature of emissions across the value chain rather than viewing land sector impacts solely as an operational issue.

Data and traceability become critical

The practical implementation of the LSR framework is likely to place greater demands on corporate climate data. Land sector accounting can involve information relating to geographical location, land use, land management practices, land use change, carbon stocks and changes over time.

As a result, organisations may need more granular and traceable data than is typically required for conventional energy-based emissions calculations. The focus should therefore extend beyond the calculation itself. Organisations need to establish a clear line of sight from source data to methodology, assumptions, calculations and reported results. This becomes particularly important where estimates, secondary data or modelling approaches are used.

The issue is also relevant from an assurance perspective. As climate related disclosures receive greater external scrutiny, the ability to demonstrate the completeness, accuracy and traceability of reported information will become increasingly important. This places ESG data governance at the centre of effective climate reporting.

Carbon removals require greater discipline

The increasing focus on carbon removals adds another dimension to corporate climate accounting. The LSR framework addresses removals associated with land management as well as technological carbon removal activities.

For organisations considering carbon removals as part of their climate strategies, this reinforces the need to distinguish clearly between emissions reductions and removals.

Credible removals require appropriate accounting methodologies, reliable data, transparent assumptions and supporting evidence. Organisations will need to consider how removals are measured, reported and incorporated into their overall climate strategy. The Guidance therefore provides an important reference point for companies seeking to strengthen the credibility of their carbon removal accounting.

What should organisations do now?

With the LSR framework becoming effective from 1 January 2027, organisations can start to a readiness review. A structured readiness assessment can focus on five areas.

Scope and materiality

Determine whether land sector emissions and removals are relevant to the organisation and identify areas of potential material impact across operations and the value chain.

Data availability

Assess whether the required activity data is available, sufficiently granular and supported by appropriate evidence.

Methodologies and models

Review existing emissions and removals methodologies and identify areas where changes may be required to align with the LSR framework.

Governance and controls

Establish clear ownership, review processes and controls over land sector data, assumptions, calculations and reporting.

System and automation

Assess whether existing ESG and climate reporting systems can accommodate additional data requirements, calculation methodologies, traceability and assurance processes.

These activities should be integrated into the organisation’s broader climate reporting programme rather than treated as a separate compliance exercise.

From compliance to decision useful information

The strategic significance of the LSR framework extends beyond meeting reporting requirements. More robust land and carbon data can provide organisations with greater visibility into supply chain exposure, climate related risks and opportunities for emissions reduction and carbon removal.

It can also support more informed supplier engagement, procurement decisions, climate target setting and investment decisions. The objective is moving from simply reporting an emissions number towards developing information that management can rely on when making business decisions.

For organisations with material land sector exposure, this will require closer integration between sustainability, finance, procurement, operations, supply chain and risk functions.

The 2027 readiness agenda

The release of the LSR Guidance provides organisations with greater clarity on how the new framework can be operationalised. The immediate priority should be to understand applicability, identify data gaps and assess the implications for existing climate accounting processes.

Early preparation will be particularly important for organisations with complex value chains, where obtaining reliable land related data may require changes to supplier engagement and data collection processes.

The strategic outlook

The LSR Guidance signals a shift in how corporate climate performance is assessed. Rather than looking only at emissions, the new approach requires companies to consider how their activities interact with land, carbon stocks, emissions and removals in an integrated way.

For companies exposed to land-based activities, the 2027 effective date should be viewed as a readiness milestone rather than a distant reporting deadline. Organisations that act early can strengthen the quality of their climate inventories, improve the reliability of their sustainability data and establish stronger foundations for assurance.

More importantly, they can use better land and carbon information to support business decisions and strengthen the credibility of their climate strategies. That is the direction of travel for corporate climate accountability. And for businesses with material land sector exposure, preparation should begin now.