Disclosure focus
This disclosure asks an organisation to explain how its climate-related targets are performing over time, and what the trend looks like. In practice, that means showing whether progress is moving in the intended direction, where it is improving or slipping, and giving enough context for a reader to understand the pattern rather than just seeing a single year’s result.
The practical focus is on the scope and consistency of what is being tracked. An organisation should make clear whether the reported performance covers all relevant operations, entities or activities, or only selected sites, business units or flagship locations. The aim is to help users judge how representative the trend is and whether the target performance reflects the organisation as a whole.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show s2-35 sub-elements (LRA working checklist)
Set out the actual result alongside the target.
Show the path of progress over time.
Review the pattern of change across periods.
Explain any gap between what was achieved and what was planned.
How to prepare it
1Set the reporting boundary first: decide which business units, sites, activities, and time period the disclosure will cover, so the figures and narrative are built on one clear scope.
2Agree the meaning of each reported item before drafting: define what you will treat as the current position against the goal, the movement path, the pattern over time, and any gap or difference you need to explain.
3Gather the support behind each item: pull together the working papers, source data, calculations, and management notes that show how each statement was reached.
4Prepare the disclosure content in full: write the numbers or narrative for the current position versus the goal, the direction of travel, the trend, and the explanation for any shortfall or change.
5Record any exclusions, assumptions, or methodology changes that affect the result, so a reviewer can see why the reported picture is what it is and whether it has shifted from prior periods.
6Check the draft against the official source and internal evidence pack, confirming that the scope, definitions, figures, and explanations align before sign-off.
Request the data
Request the target tracking pack from Finance
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
How are the agreed targets tracking against actual results, what is the direction of travel, and what explains any gap or change?
Use your organisation’s own performance language first, then map it to the disclosure. For example, if your team talks about KPIs, scorecards, business plans, or management reporting, use those terms in the request and only translate them later for the sustainability report. Keep the ask practical and evidence-led; check the source material before sign-off.
Weak request
Please provide the disclosure wording for target performance and trends.
Why it fails: This asks for report language rather than the underlying management evidence. It does not say which internal pack, period, comparison basis, or commentary is needed, so the owner cannot tell what to pull or how to frame the data.
Better request
Please send the latest management pack for [business area] showing actuals against the approved target or plan for [period], plus the trend over time and the main reasons for any variance. Include the source system, version of the target used, and any notes the team already uses internally.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Explain what was measured, how the target or reference point was set, which periods are included, and any assumptions or estimation methods used to prepare the figures.
Context note
Set out what the numbers indicate about delivery against the intended level, including whether performance is improving, holding steady or moving away from plan.
Fluctuation statement
Describe the main operational, market or timing factors that caused the reported result to differ from the intended level, and note whether those factors are temporary or likely to continue.
Content index entry
s2-35 Target performance and trends — [location / page] / [notes]
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Preparation tools & forms
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner
The request goes to the wrong team or person, so the figures are pulled from someone who does not hold the working records.
Framework language used
People ask for the data using reporting-framework terms instead of the business’s own labels, and the source team cannot match the request to its records.
Scope left vague
No one agrees which business unit, activity, or target set is in scope, so different teams send different populations.
Wrong time basis
The data is taken for the wrong reporting period or cut-off date, which makes the comparison with the target line up incorrectly.
Mixed counting basis
One source counts items one way and another source counts them differently, so the combined dataset is not on a like-for-like basis.
Source labels lost
Original file names, field names, or system tags are stripped away, so the team cannot trace each figure back to its starting record.
Separate groups merged
Populations that should stay apart are rolled into one extract, which hides differences between target, actual, and trend data.
Evidence trail missing
The extract is saved without notes on where it came from, when it was pulled, or who checked it, so the audit trail is incomplete.
No sign-off record
The final numbers are used before the owner has confirmed them in writing, leaving no clear approval trail for the working papers.
Where judgement is often needed
Set the comparison base after a business change
If a purchase, sale, or reorganisation changes the group you are tracking, explain whether you restated the starting point and later figures so the comparison stays like-for-like, or whether you kept the original base and described the break in continuity.
Choose one way to handle mixed country definitions
Where local teams measure the same target differently, pick a single group-wide method for the report period, explain any conversion or alignment steps, and note any places where local practice still differs.
Decide how to treat borderline activities or people
For sites, products, customers, workers, or other populations that sit near the scope line, state the rule used to include or exclude them and disclose any material judgement where the boundary is not clear-cut.
Fix the timing basis for progress and trend lines
If performance is tracked on different dates, frequencies, or cut-off points across the business, say which date or period drives the reported comparison and explain any lag between operational tracking and the reported update.
Separate measured results from estimates
When some figures come from direct records and others from assumptions or sampling, identify which parts are estimated, explain the method used, and show whether the estimate could move the reported gap to target or the trend view.
Explain how rounding affects small movements
If rounding changes the apparent distance to target or the shape of the trend, state the rounding basis used and make sure the narrative still matches the underlying numbers.
Aggregate sensitive data without hiding the pattern
Where privacy or confidentiality means you cannot show detail for small groups, combine the data to a level that protects individuals, then explain the aggregation rule and any effect on the reported trend or variance.
Describe how you treat partial-period effects
If an acquisition, disposal, or other change only affects part of the year, explain whether you include the full period, only the time in scope, or a normalised view, and make clear how that choice affects the actual-versus-target comparison.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — manufacturing
We compare our current-year outcome with the level we set at the start of the year, and the gap is explained by slower-than-planned efficiency gains in two plants. - Our target was 120 units of output per unit of energy; we achieved 114, which is 95% of plan. - The line of travel is improving: 108 in the prior year, 111 at mid-year, and 114 at year-end. - Against the target, we are 6 units short; the shortfall narrowed from 12 units at mid-year, showing steady catch-up. - The difference is mainly due to delayed equipment upgrades and a longer maintenance shutdown than expected.
This example shows how to present the current result against the planned level, describe the direction of movement over time, and explain why the outcome differs from plan, using simple figures that stay internally consistent.
Illustrative (synthetic) example — food retail
We set a year-end goal for reducing food waste, and our reported result sits close to that aim, with the remaining gap linked to store roll-out timing. - The plan was to cut waste to 8.0 tonnes per £1m sales; we finished at 8.6, equal to 93% of the target level. - The pattern has moved in the right direction: 9.8 last year, 9.1 at the half-year point, and 8.6 at year-end. - The gap to plan is 0.6 tonnes per £1m sales, smaller than the 1.1 gap seen at mid-year. - The main reason for the miss is that three stores joined the new process later than scheduled, so the full benefit arrived after year-end.
This example illustrates a plain-language comparison with the planned figure, a short trend view, and a brief explanation of the variance, all written as a synthetic disclosure.
How companies report S2-35 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Hang Lung Properties Limited
Real Estate · Hong Kong · 2025
Hang Lung Properties Limited’s Sustainability Report 2025 provides detailed coverage of performance against each climate-related target, including an analysis of trends or changes in the entity’s performance, as shown on pages 220 and 234. The report also discloses the progress trajectory towards these targets on page 220. However, there is no evidence found regarding explanations for any variances between actual performance and targets.
Aditya Birla Fashion and Retail Limited
Retailing · India · 2025
Aditya Birla Fashion and Retail Limited’s Integrated Annual Report 2024-25 provides evidence of actual performance against each climate-related target along with an analysis of trends or changes in the entity’s performance, as shown on page 112. The report also discusses climate-related risks and opportunities in its strategy and decision-making processes (p.110). However, there is no quotable evidence regarding the progress trajectory or explanations for variances between targets and actual performance.
SITC International Holdings Company Limited
Water Transportation · Hong Kong · 2025
SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report includes a trend analysis of performance against each climate-related target, with discussion of changes in the entity’s performance on page 198. The report references the metrics used to set climate-related targets on page 197, indicating some disclosure of target-setting methodology. However, clear disclosures on actual versus target performance and progress trajectory are unclear on page 197, and there is no evidence found regarding explanations for variances.
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Scenarios to work through
A group has a 2030 emissions target and has reported this year’s result as 18% below the baseline, compared with 12% below baseline last year. The draft note also says the gap to target has narrowed, but it does not explain why.
QShould the narrative include both the current position against the target and a plain explanation of the change in the gap, or is the percentage alone enough?
Reveal model answer →Hide answer ↑Use both. The reader should be able to see where the organisation stands against the target now, how that position has moved over time, and what is driving the movement. A percentage without the reason for the change leaves the picture incomplete, so the explanation should be added in business terms and tied to the underlying cause.
Why this matters · A target update should show the present gap and the reason that gap has changed, not just a single figure.
A preparer has two years of data showing steady improvement in energy intensity, but the latest quarter is worse than the prior quarter because a new site came online. Management wants to describe the latest quarter only, because it looks cleaner than the full-year pattern.
QShould the disclosure focus on the latest quarter, or should it also describe the broader direction of travel and the reason for the short-term setback?
Reveal model answer →Hide answer ↑It should cover the wider direction of travel as well as the short-term movement. A one-period dip does not replace the overall pattern, so the narrative should explain that the longer-term line is still improving while noting the temporary effect of the new site. The explanation should make clear whether the setback changes the overall assessment or is just a timing effect.
Why this matters · Readers need the longer trend and any short-term deviation, so they can judge performance in context.
A company has a water-reduction target and the actual result is slightly ahead of plan. The team has prepared a chart, but the written commentary only says the target is being monitored and gives no view on whether progress is accelerating, slowing, or flat.
QDoes the commentary need to say more than the current result, and if so what should it add?
Reveal model answer →Hide answer ↑Yes. The commentary should describe the direction of progress, not just the end point. It should tell the reader whether movement is improving, weakening, or staying broadly unchanged, and it should link that view to the evidence behind it. That helps users understand whether the organisation is on a steady path or relying on a one-off gain.
Why this matters · A current result is not enough on its own; the narrative should also describe the pace and direction of movement.
A preparer is drafting the section on a methane target. The numbers show the organisation is 5% behind plan this year, but the team has not agreed whether the cause was operational disruption, a change in measurement, or both, and the draft leaves the shortfall unexplained.
QCan the disclosure leave the shortfall unexplained until next year, or should it set out the reason now?
Reveal model answer →Hide answer ↑It should explain the shortfall now. Where the actual outcome differs from the target path, the reader needs a clear account of why that happened and how it affects the trend. If more than one factor contributed, the explanation should separate them as far as the evidence allows, so the movement is understandable rather than just reported as a gap.
Why this matters · When actual performance misses the plan, the narrative should explain the variance and its effect on the trend.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
For s2-35, what data points do I need to gather before I start drafting the disclosure?+−
The page says to prepare four core datapoints: current versus target, direction of progress, change over time, and the reason for any gap. Use those as the starting checklist before you draft anything.
How do I use the step-by-step 'how to prepare' section for s2-35 in practice?+−
Use it as a working sequence rather than a reference note: first identify the datapoints, then gather the supporting evidence, and then turn that into a draft. The page is designed to help you move from raw information to a disclosure-ready output.
What should I include in the evidence pack for s2-35 if I want to be assurance-ready?+−
The page includes an evidence pack with five items to support assurance readiness. Build your pack around the disclosure data, the underlying source material, and anything that shows how the figures and narrative were prepared and checked.
What are the five assurance claims I should verify for s2-35, and how do I use them?+−
The page provides five claim/risk/evidence checks to help you test the disclosure before assurance. Use them to confirm that the numbers, the explanation of movement, and the supporting documents line up.
What are the common reporting gaps or mistakes on the s2-35 page, and how do I avoid them?+−
The page lists common gaps and mistakes so you can spot weak points before finalising the disclosure. In practice, use that list as a pre-submission review against your data, narrative, and evidence pack.
How can I turn the s2-35 datapoints into a draft disclosure using the page's output section?+−
The draft-output section gives you visualisation ideas, narrative starters, and a content-index line. That makes it easier to convert the prepared datapoints into a first draft without starting from a blank page.
What is the synthetic example on the s2-35 page meant to show, and can I copy it into my report?+−
The example is explicitly synthetic and is there to show how a disclosure might look in practice, including a quantitative table where relevant. You should use it as a formatting and drafting aid, not as a template to copy without adapting it to your own data.
How do I use the Prep & Assurance workbook for s2-35?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format. Use it to organise the preparation steps, track the evidence you need, and support assurance readiness before you draft the disclosure.
What is the printable Library Card for s2-35 for?+−
The Download Centre also includes a printable Library Card in .pdf format. It is a practical companion for keeping the disclosure points, evidence needs, and preparation steps in one place while you work.
Can I use the 'From company reports' table to find real examples for s2-35?+−
Yes. The page links to real published reports at the pages where the topic is disclosed, so you can see how others have presented similar information in practice.
Is there a cross-framework reference for s2-35 that helps me reuse data for ESRS E1?+−
The page notes ESRS E1 (Climate Change) as the closest correspondence. That means the same underlying data may be reusable across both, but you still need to check the specific reporting needs for each framework.
More questions this page can help with
s2-35 disclosure checklist: what should I collect before drafting?s2-35 current versus target data: how should I structure it for the workbook?s2-35 direction of progress and change over time: what evidence should support the narrative?s2-35 reason for gap: how do I write this without overclaiming?s2-35 assurance-ready evidence pack: what documents should I pull together?s2-35 common mistakes: what do reviewers usually miss?s2-35 draft disclosure examples: how do I adapt the synthetic example to my own data?s2-35 workbook download: how do I use the .xlsx file step by step?s2-35 library card PDF: when should I use the printable version?s2-35 content index line: what should I include in the draft output?s2-35 company report examples: where can I see real published disclosures linked on the page?s2-35 ESRS E1 correspondence: can I reuse the same data across both pages?
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