Disclosure focus
Practically, the reporting should cover the organisation’s own operations and workforce in a way that is not limited to a few headline sites or isolated initiatives. The key question is whether the targets apply across the relevant parts of the business, how they are monitored, and whether they reflect the main social issues affecting workers. If a target only covers part of the organisation, that limitation should be clear.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official European Commission source.
Prepare
What to collect before drafting
Tick each field as the evidence lands. Owners are the teams that usually hold the source files.
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Target setting details
Sustainability / strategyRecord the actual target value, including the metric, the unit, the direction of change, and any threshold or end-point used so the target can be understood on its own.
Evidence Approved target register, board or management paper, target tracker, or strategy document showing the agreed figure and how it is defined.
Watch for The target value is taken from a draft or presentation slide and does not match the approved target register or board-approved figure.
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Coverage of suppliers
Procurement / supply chainState exactly which supplier group, category, or other subset the target applies to, including any exclusions or boundaries used to define the covered population.
Evidence Supplier segmentation file, procurement policy, scope note, or target methodology showing the covered categories and any exclusions.
Watch for The scope is built from the wrong supplier population, so the reported coverage does not align to the procurement master data or category definition.
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Starting point value
Finance / data analyticsCapture the starting value used for the target, with the same metric, unit, and population as the target itself, and note the date or period it relates to.
Evidence Baseline calculation file, prior-period report, source-system extract, or methodology note showing the original value and the period used.
Watch for The baseline is taken from a different period or population, so it does not reconcile to the source dataset used for the target.
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Delivery timetable
Programme managementSet out the planned timing for the target, including the start point, milestone dates, and the final date or review point used to judge progress.
Evidence Target roadmap, project plan, implementation schedule, or approved timeline in the strategy pack.
Watch for The timeline mixes milestone dates with the final deadline, so the reporting period and target horizon are not aligned.
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Metric alignment
Performance reportingShow which performance measure the target is linked to, and make clear how the target connects to that measure so the relationship is unambiguous.
Evidence KPI dictionary, performance dashboard, methodology note, or reporting pack showing the named measure and the linked target.
Watch for The target is linked to a different KPI definition than the one used in reporting, so the measure and target do not reconcile.
Before you start
- Have we decided which supplier groups or categories this target covers, and which are out of scope?
- Have we fixed the starting point for the figure, and is it the same basis we will use for the target?
- Have we chosen the time horizon and end date we will use for this target?
- Can we trace each target figure back to a named source or working paper in our records?
- Have we agreed which internal performance measure this target is linked to, and are we using the same definition throughout?
How to prepare it
Request the data
Request the supplier target details
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What supplier-related targets do we have in place, and what are their scope, starting point, timing and link to our supplier performance measures?
Use your organisation’s own language first for supplier groups, categories, scorecards and performance measures, then map those terms to the disclosure fields. Keep the request in business terms your team already uses, and check the source material before sign-off.
Weak request
Please provide the ESRS S2-4 targets, including scope, baseline, timeline and KPI linkage.
Why it fails: This uses framework language that many operational teams will not use day to day, so it is easy to answer incompletely or with the wrong internal records. It also does not tell the owner what practical evidence to pull or how to describe the target in their own terms.
Better request
Please send the supplier target tracker for [reporting period]. For each target, include the supplier group or category covered, the starting point, the end date or milestone, and the scorecard or measure it sits against. Attach the tracker, approval note, or dashboard extract, and keep your team’s own labels so we can map them later. Please check the source material before sign-off.
Formal email template
Subject: Request for supplier target details for [reporting period] Hi [name/team], We are pulling together the supplier target information for [reporting period]. Please send the details for any supplier-related targets your team manages, using your normal internal terms where possible. For each target, please include: - the supplier group or category covered - the target statement in plain business language - the starting point used - the timing, including any end date or milestone - the performance measure or scorecard link - the system or file where the information is held - the person who owns the target and the person who approved it Please also attach any supporting material, such as a scorecard extract, target tracker, or approval note. If you use different labels internally, please keep those labels and we will map them later. Please check the source material before sign-off. Thanks, [preparer name]
Short Teams / Slack version
Hi [name/team] — could you send the supplier target details for [reporting period]? Please include the supplier group/category, target statement, baseline, timing, measure/scorecard link, and the source file/system. Use your usual internal terms and we’ll map them later. Please check the source material before sign-off. Thanks.
Industry examples
Retail
Context. The business tracks supplier performance for own-brand goods and logistics partners.
Adapted request. Please send the target tracker for own-brand suppliers and logistics partners for [reporting period]. Include the supplier group covered, the starting point, the target date, and the scorecard measure used, such as delivery performance or corrective action closure. Attach the tracker or dashboard extract and keep your internal category names.
Example response. Own-brand food suppliers; reduce repeat quality issues by 15%; baseline: 2024 issue rate; target date: Dec 2027; linked measure: quality scorecard; source: supplier dashboard; evidence: exported tracker and approval note.
Manufacturing
Context. The business manages targets for tier-1 and critical raw material suppliers.
Adapted request. Please send the target details for tier-1 and critical material suppliers for [reporting period]. Include the supplier set covered, the starting point, the milestone date, and the operational measure linked to the target, such as audit closure or delivery reliability. Attach the target register or procurement report and use your normal supplier labels.
Example response. Critical raw material suppliers; improve audit closure rate to 95%; baseline: 2024 closure rate of 82%; milestone: end-2026; linked measure: supplier audit tracker; source: procurement report; evidence: register extract and management approval.
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 how each target was set out in practical terms, including the starting figure used, the business areas or supplier groups covered, the time period for delivery, and the performance measure used to track it.
Context note
Set out what the target figures mean in practice by showing the gap between the starting point and the intended outcome, and by clarifying which parts of the supply chain or other categories are included.
Fluctuation statement
If the target set has changed, explain whether the shift comes from a revised starting point, a wider or narrower scope, a different delivery date, or a change in the indicator used to follow progress.
Content index entry
S2-4 Targets — [location / page] / [notes]Download Centre
Preparation tools & forms
Download preparation tools for S2-4 with free verified email access for 24 hours. Source-report links remain public.
Check
For each claim, check the evidence
We set the baseline for the coverage figure using a clearly identified starting point, with the starting year or reference level documented before we calculated progress.
Risk An assurer will check whether the starting point was chosen consistently, whether the year or reference level is actually recorded, and whether later progress can be traced back to that same basis.
Evidence to check Baseline worksheet or methodology note; source data showing the initial year or reference level; version history or approval record for the baseline; working papers linking the baseline to later reported progress.
We prepared the target so it can be read alongside the policy aim, the related actions and the KPI we use to monitor movement.
Risk An assurer will probe whether the target is genuinely connected to the stated policy intent and tracking measure, or whether the links were added after the fact and do not match the underlying plan.
Evidence to check Target-setting paper; policy and action plan cross-reference; KPI definition sheet; internal mapping showing how the target, actions and metric fit together; meeting notes or approvals confirming the linkage.
We documented the basis used to shape the target, including the method we applied, the main assumptions, whether any legal duty drove it, the scenario used where relevant, the data sources relied on and why the target fits the wider policy direction.
Risk An assurer will test whether the target was built on a transparent and supportable basis, whether assumptions are reasonable, and whether the stated sources and scenario actually underpin the figure disclosed.
Evidence to check Target methodology paper; assumption log; legal review or compliance note where relevant; scenario analysis file if used; source-data pack; internal sign-off showing the target is aligned with the policy direction.
We stated the intended outcome in a way that shows the level we are aiming for, the unit or measure used, and whether the target is expressed as an absolute amount or as a proportion/change.
Risk An assurer will check that the target is numerically or qualitatively clear, that the unit of measure is unambiguous, and that the target type matches the way progress is being reported.
Evidence to check Disclosure draft; target register; metric definition document; calculation model showing the unit and whether the target is absolute or relative; review notes confirming the wording is consistent with the underlying records.
We set out the time frame for the target, including the end date or period and any stepping-stone dates we use to monitor delivery.
Risk An assurer will look for whether the dates are specific, whether interim checkpoints are real rather than illustrative, and whether the timeline is consistent across the report and supporting papers.
Evidence to check Target timetable; project plan or roadmap; board or management approval showing the end date and any interim checkpoints; consistency check between the disclosure and internal planning documents.
We used input from workers in the relevant chain, their recognised representatives or other credible proxies when shaping the target, monitoring progress and learning what needed to change.
Risk An assurer will probe whether engagement actually happened, whether the people consulted were appropriate, and whether the feedback influenced the target or tracking approach rather than being a box-ticking exercise.
Evidence to check Engagement logs; consultation notes; records of meetings with worker representatives or proxies; summary of feedback and management response; evidence showing how the input affected the target or monitoring approach.
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.
Where drafts go wrong
Mistakes to avoid and where judgement is needed
The left column is what preparers get wrong while collecting; the right column is where you will have to make and explain a judgement.
Mistakes to avoid
- Wrong ownerThe team asks someone who does not hold the target data in their day-to-day work, so the figures come back second-hand and unverified.
- Framework language onlyPeople ask for the information using reporting jargon instead of the business terms the owner uses, and the answer does not match the organisation’s own records.
- Unclear scopeNo one states which supplier groups or categories are in or out, so different teams collect different populations and the result cannot be compared.
- Wrong reference periodThe data is pulled for the wrong time window or timing basis, so the target values do not line up with the period the organisation is trying to describe.
- Mixed counting basisOne source counts items one way and another source counts them differently, and the combined set no longer sits on a single consistent basis.
- Source labels lostThe original names from the underlying files or systems are stripped out during collection, making it hard to trace each figure back to its starting point.
- Populations merged too earlySeparate supplier sets or category groups are blended before checking them, which hides differences that should stay distinct for the target data.
- No evidence trailThe collector keeps the numbers but not the supporting notes, file dates, or approval trail, so the team cannot show how the data was assembled.
- No sign-off recordThe final dataset moves forward without a named reviewer confirming it, leaving no clear record of who checked the target information before use.
Judgement needed
- Set the target boundary after a buy, sale, or reorganisationIf the supplier group or category mix changes because of acquisitions, disposals, or internal restructuring, explain whether the target now follows the new operating boundary or stays anchored to the earlier one, and show how the baseline and timeline were adjusted.
- Handle country-by-country definitions with one internal ruleWhere the same supplier type or category is described differently across markets, choose one internal mapping rule, apply it consistently, and explain the translation so readers can see how the target scope was built.
- Decide how to treat suppliers sitting just inside or outside scopeFor suppliers, categories, or spend lines near the edge of the chosen scope, state the inclusion rule you used, why it was chosen, and whether any borderline cases were grouped, excluded, or tracked separately.
- Choose the baseline date and keep the reason visibleIf several plausible starting points exist, pick one baseline date or period, explain why it is the right anchor for the target, and say whether later restatements were made when the underlying business mix changed.
- State whether the target is built from measured data or estimatesIf the target relies partly on estimates, proxies, or modelled figures rather than direct records, say which parts are estimated, how they were derived, and how that affects confidence in the target value and progress tracking.
- Explain how rounding affects the target and progress figuresIf numbers are rounded for presentation, disclose the rounding rule and make sure the rounded target, baseline, and progress figures still reconcile logically when read together.
- Use a privacy-safe level of aggregation for sensitive supplier dataWhen detailed supplier information cannot be shown because of confidentiality or privacy limits, present the target at a higher grouping level, explain the aggregation choice, and make clear what detail has been withheld.
- Align the target timeline with the KPI used to track itIf the target is linked to a performance measure that is reported on a different cycle or basis, explain the link, the timing used for each, and how readers should compare the target with the KPI trend.
Examples
How it reads on the page
Synthetic, written by LRA — not from a company report, not text from any standard.
We set a time-bound reduction aim for the supplier issue we track, using our 2024 position as the starting point and measuring progress against the same indicator each year.
- Our baseline is 42 confirmed supplier cases in 2024, covering direct suppliers and the highest-risk raw-material categories in scope.
- The target is 25 cases by 2027, and we will judge delivery through the same supplier-risk KPI used in our management reporting, so the measure stays aligned with our internal dashboard.
This example shows how a company can describe a supplier-related target in plain language while still covering the starting point, the coverage boundary, the deadline, and the linked KPI.
We have a staged plan to reduce the labour-rights issue we monitor across our own-brand supply chain, and we will track it with the same metric used in our quarterly risk review.
- Our starting point is 18 verified supplier incidents in 2023 across tier 1 factories and nominated fabric mills.
- We aim to bring that down to 9 incidents by 2026, with progress assessed against the supplier-conduct KPI that feeds our internal scorecard.
This example shows a different sector and a different target design, while still making clear the baseline, the supplier coverage, the end date, and the KPI used to follow progress.
Quality ladder
- Basic
We have set a target to cut supplier-related incidents by 20%.
- Better
We have set a target to cut supplier-related incidents by 20% across our direct suppliers, measured against our 2024 starting point.
- Best
We have set a target to cut supplier-related incidents by 20% across our direct suppliers by 2027, measured against our 2024 starting point and linked to our incident-rate KPI, and the recent rise reflects a wider supplier base rather than a change in our target.
Check your understanding
Scenarios to work through
A procurement team has set a goal to reduce serious labour-rights incidents in its direct supplier base, but the draft note only says the aim is to “improve supplier standards” and does not say which supplier group is covered. The team also has a baseline from last year, but it is not yet linked to the target statement.
A company has announced a supplier-wellbeing target for 2030, but the draft report gives no date by which progress should be achieved and no interim milestone. The underlying KPI is tracked monthly, yet the narrative does not say how that measure connects to the target.
The sustainability team has two supplier-related targets: one for training completion among high-risk suppliers and another for audit follow-up closure. The draft combines them into one paragraph, but it is unclear whether both targets share the same baseline or whether each has its own starting point and timetable.
A business has set a target to increase responsible sourcing coverage across selected supplier categories, but the draft wording uses internal jargon and does not explain whether the target applies to all suppliers or only certain groups. The KPI is mentioned, but the report does not show how it relates to the target value.
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Peer comparison uses examples on this card, not prevalence in the report corpus.
Advice, not assurance
Framework references
Relevant ESRS requirements and related disclosures
ESRS
S2-4
within ESRS S2: Workers in the Value Chain
Guides that settle this question
Related & explore
More in ESRS S2 →Browse full catalogue →Search all disclosures →
FAQ
Questions this page answers
Start with the plain-language explainer, then work through the step-by-step preparation section and the datapoints to prepare. The page is designed to help you turn source information into a draft disclosure, not to replace your own judgement or internal process.
The page says to prepare target setting details, coverage of suppliers, starting point value, delivery timetable, and metric alignment. Use those datapoints as your minimum data checklist before drafting.
Use the page’s coverage of suppliers datapoint to set the scope and be clear about which supplier population the disclosure covers. The page also points you to the step-by-step preparation section, which is where you would document that scope choice.
The page is aimed at sustainability or ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the person or team that can coordinate those inputs. The page itself does not assign roles, so you would use it to support internal ownership rather than to define it.
The page includes an evidence pack with five items to support assurance readiness. Use it alongside the six assurance claims to verify so you can show the claim, the risk, and the supporting evidence clearly.
The page lists common reporting gaps and mistakes, so it is useful as a pre-submission check. Use it to spot missing datapoints, weak scope descriptions, or unsupported claims before you finalise the draft.
They are there to show what a finished disclosure can look like, including a quantitative table where relevant. Treat them as illustrative only and make sure any numbers in your own draft are internally consistent.
Yes. The Download Centre includes a Prep & Assurance workbook in .xlsx format, which is intended to help you organise the preparation and assurance steps before drafting.
The Download Centre includes a printable Library Card in .pdf format, which you can use as a quick reference while preparing the disclosure. It sits alongside the workbook rather than replacing the main page content.
Use the draft-output section, which gives visualisation ideas, narrative starters, and a content-index line. That section is designed to help you move from prepared data to a first draft.
The page has a 'From company reports' table that links to real published reports at the pages where the topic is disclosed. Use it for reference points, but the page does not claim an exact framework mapping.
More questions this page can help with