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London Reporting Academy ESRS S4 · Consumers and End-users · Disclosure Requirement S4-4

Applicable from FY2027

This revised ESRS edition applies from reporting year 2027. For reporting years 2024–2026, use the ESRS 2023 edition.

Targets

S4-4 · mandatory · narrative disclosure

This disclosure asks an organisation to explain the social targets it has set in relation to affected communities, and how those targets are meant to drive action. In practice, the report should make clear what the target is, what issue it addresses, the timeframe, and how progress is being tracked. The emphasis is on showing that the target is specific enough to be meaningful and connected to the organisation’s actual impacts and responsibilities.

Disclosure focus

The practical focus is on coverage and relevance: whether the target applies across the organisation’s operations, selected business units, projects or sites, or only to particular locations with higher community impact. Readers should be able to see why the chosen scope is appropriate, how it reflects material risks or impacts, and whether the organisation is using targets to manage performance consistently rather than only at flagship sites or in isolated initiatives.

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.

  • Target values

    Strategy / Sustainability

    Record the specific target figures or end-state values the organisation has set, including the metric, the target level, and any stated direction of change.

    Evidence Approved target register, strategy deck, board paper, or performance plan showing the agreed figures.

    Watch for The target figure is taken from a draft or a different version and does not reconcile to the approved target register.

  • Covered products and users

    Product / Commercial

    Set out exactly which products, services, or user groups the narrative applies to, using the same scope the organisation uses internally.

    Evidence Product catalogue, service scope note, customer segmentation file, or policy document defining the covered population.

    Watch for The scope is mixed up with a broader product set, so the reported coverage misses a defined sub-population or includes items outside the intended scope.

  • Starting point

    Finance / Data Analytics

    Capture the reference starting value used for comparison, including the date or period it relates to and the metric definition used.

    Evidence Baseline calculation file, prior-period report, management pack, or source-system extract used to set the starting point.

    Watch for The baseline is taken from a different period or definition and does not reconcile to the source system used for the reported metric.

  • Delivery timetable

    Programme Management

    State the planned timing for the target, including the milestone date or dates and any staged checkpoints if the plan uses them.

    Evidence Roadmap, implementation plan, project timeline, or board-approved schedule showing the agreed dates.

    Watch for The timetable uses a different reporting period or milestone date than the approved plan, so the timing is off by scope or period.

  • Metric link

    Performance Management / Reporting

    Explain which performance measure the target is tied to, and make clear how the target value connects to that measure in practice.

    Evidence KPI dictionary, scorecard, performance dashboard, or target-setting paper showing the linked measure and its definition.

    Watch for The target is linked to a KPI with a different definition, so the reported measure does not match the scorecard or dashboard.

Before you start

  • Have we set a clear target figure, and is it tied to the specific products or user groups we mean to cover?
  • Can we point to the starting figure we are using, and is it taken from the same basis as the target itself?
  • Have we fixed the date or period by which we expect to reach the target, and is that timing stated in our own planning terms?
  • Can we trace each number back to a source record or calculation we can stand behind?
  • Have we agreed which internal measure or performance indicator this target sits alongside, so the link is clear?
+ Show S4-4 sub-elements (LRA working checklist)

How to prepare it

Set the boundary for the target first: identify which products or users the target applies to, so the scope is clear before you draft anything else.
Define the target itself in business terms: state the value you are aiming for, and make sure the wording is specific enough to be understood without the standard in front of you.
Pin down the starting point: record the baseline you will measure against, using the same basis consistently across the disclosure.
Fix the timing: set out the timeline for the target, including the point by which it is meant to be reached.
Link the target to the performance measure: show which KPI or other metric it connects to, so readers can see how progress will be tracked.
Before finalising, check the draft against the official source, and document any exclusions, scope changes, or wording adjustments so the reported information stays traceable and consistent.

Request the data

Request the target-setting evidence from the product owner

Translate the disclosure into an internal business question — then adapt it to your organisation's own language.

What customer-facing improvement targets are in place, what do they cover, where do they start from, by when are they meant to be reached, and which performance measures do they connect to?

Use your organisation’s own terms first, then map them to the disclosure. For example, ask for the product, service or customer-experience goals your teams already track, rather than using framework labels in the request.

Weak request

Please send the ESRS S4-4 targets, including the target values, scope, baseline, timeline and KPI linkage.

Why it fails: This uses framework language that many teams will not recognise internally, so the owner may not know which documents or dashboards to pull. It also does not say what practical evidence is needed, who owns it, or how the target is tracked in day-to-day business terms.

Better request

Please send the latest product or customer-experience target pack for [period]. I need the goal wording, what products or user groups it covers, the starting point, the due date or milestone, and the performance measure it is tied to. Please include the dashboard or file name, owner, last update date, and any notes on exclusions or changes in method.

Formal email template
Subject: Request for customer-target evidence for [reporting period]

Hi [name],

I’m pulling together the internal evidence pack for our customer-facing improvement targets for [reporting period]. Could you please send me the latest material showing:
- the target wording in your own team language;
- what products, services, or user groups it covers;
- the starting point used for the target;
- the date or milestone by which it is meant to be reached; and
- the performance measure(s) it is linked to.

Please also include the source file or dashboard, the owner, the date it was last updated, and any notes on assumptions, exclusions, or changes in method.

A simple table or screenshot is fine if that is how your team tracks this. Please adapt this to your organisation’s own terms and check the source material before sign-off.

Thanks,
[preparer name]
Short Teams / Slack version
Hi [name] — could you share the latest evidence for our customer targets for [period]? I need the target wording, what it covers, the starting point, the due date/milestone, and the linked performance measure(s), plus the source file/dashboard and owner. Please use your team’s own terms. Thanks.

Industry examples

Retail / Consumer Goods

Context. The business tracks customer-service and product-quality goals in a monthly commercial scorecard.

Adapted request. Please share the latest customer and product scorecard for [period]. I need the goal wording, which brands or product ranges it covers, the starting point, the target date or milestone, and the linked measures such as complaint rate or return rate. Please include the source file, owner, last update date, and any method notes.

Example response. Attached: Q4 customer scorecard. Target wording: reduce complaint rate for core range. Coverage: core range sold in UK stores and online. Baseline: 2.8 complaints per 1,000 units in Jan 2025. Target date: 31 Dec 2026. Linked measures: complaint rate, return rate. Source: Commercial Scorecard v7. Owner: Customer Insights Manager.

Financial Services

Context. The business manages service-quality goals through a customer outcomes dashboard.

Adapted request. Please send the latest service-quality target evidence for [period]. I need the target wording, which customer journeys it covers, the starting point, the milestone date, and the linked measures such as call wait time or complaint closure time. Please include the dashboard link, owner, last updated date, and any assumptions or exclusions.

Example response. Attached: Service outcomes dashboard extract. Target wording: shorten complaint closure time for retail customers. Coverage: complaints handled by the retail service centre. Baseline: 12 business days at 1 Apr 2025. Target date: 31 Mar 2026. Linked measures: closure time, reopen rate. Source: Customer Outcomes Dashboard. Owner: Head of Service Operations.

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

State how each target was defined, including what was counted, which products or user groups were covered, the starting figure used, the time horizon chosen and the performance measure linked to the target.

Context note

Explain what the target figures mean in practice by linking them to the baseline, the intended end point and the business area or user group they relate to.

Fluctuation statement

If any target values changed, note whether the change came from a revised scope, a new starting point, a different timetable or a change in the linked performance measure.

Content index entry

S4-4 Targets — [location / page] / [notes]

Download Centre

Preparation tools & forms

Download preparation tools for S4-4 with free verified email access for 24 hours. Source-report links remain public.

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Check

For each claim, check the evidence

  • We can show how the target links back to the policy aim and the action plan, and we can point to the measure we used to track it.

    Risk An assurer will check that the link is not just asserted in narrative, but is supported by a clear internal trail from the objective to the chosen metric or KPI.

    Evidence to check ['Target-setting paper or tracker showing the policy objective, related actions and the metric used', 'Internal approval pack or board paper that ties the target to the relevant policy work', 'Definitions note for the metric/KPI or measurement basis used to monitor progress']

  • We documented the method used to set the target, including the main assumptions behind it.

    Risk An assurer will probe whether the target was built on a consistent method and whether the key assumptions were identified, understood and approved.

    Evidence to check ['Methodology note or model used to build the target', 'List of significant assumptions, with rationale and version control', 'Review or sign-off evidence showing the method and assumptions were checked before publication']

  • We can evidence the level we said we are aiming for, and whether that is expressed as a number, a percentage, or a qualitative end-state.

    Risk An assurer will test whether the stated ambition is precise enough to be measured and whether the unit or basis is consistent with the way progress is reported.

    Evidence to check ['Target schedule showing the stated level and the basis used', 'Calculation file or reporting template showing the unit, absolute basis or relative basis', 'Consistency check between the target wording and the progress reporting format']

  • We defined the coverage of the target before publishing it, including which customer groups or users, which offerings, which parts of the chain, and which places are in or out.

    Risk An assurer will look for scope creep or hidden exclusions, and will check whether the boundary matches the way the figure is presented elsewhere in the report.

    Evidence to check ['Scope memo or boundary note for the target', 'Population or portfolio listing showing included and excluded groups, offerings and geographies', 'Reconciliation between the scope note and the published figure or narrative']

  • We set out the time frame for the target, including the end point and any stepping-stone dates we use internally.

    Risk An assurer will check that the dates are fixed, internally consistent and not changed without explanation.

    Evidence to check ['Target timeline or roadmap with the final date and interim dates', 'Version history showing any changes to dates and the reason for them', 'Internal monitoring pack showing progress against each milestone']

  • We recorded whether the target comes from a legal obligation or from our own decision.

    Risk An assurer will verify that the statement on legal status is accurate and that any legal basis has been identified correctly.

    Evidence to check ['Legal review or compliance note on whether the target is mandated by law', 'Reference to the relevant legal source where applicable', 'Management sign-off confirming the classification used in the disclosure']

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

  • Unclear ownerThe team asks the wrong business lead for the target details, so the numbers come from someone who does not hold the working records.
  • Framework language used too earlyPeople ask for the target in reporting jargon instead of the organisation’s own terms, and the answer comes back too vague to use.
  • Scope not pinned downThe data pull does not separate which products or user groups are in and out, so the target is built on a wider or narrower set than intended.
  • Baseline not fixedThe starting point is taken from a different reference point than the one used in the target plan, which makes later comparisons misleading.
+ Show 5 more

Judgement needed

  • Setting the target around a changed business perimeterIf acquisitions, disposals or other portfolio moves alter the group you are tracking, explain which perimeter you used for the target, baseline and timeline, and why that choice gives a fair comparison over time.
  • Using one definition across different countriesWhere local operating units describe the same customer or user group differently, pick one working definition for the target and say how you aligned the country-level data so the scope is consistent.
  • Deciding who sits just inside or outside the target populationFor people or user groups near the edge of scope, set out the inclusion rule you applied, note any exclusions, and explain the practical reason for drawing the line there.
  • Choosing the starting point for progress trackingState the date or period used as the baseline, and if the first usable data point is not the earliest possible one, explain the basis for that choice and any effect on comparability.
+ Show 5 more

Examples

How it reads on the page

Synthetic, written by LRA — not from a company report, not text from any standard.

Illustrative (synthetic) example — consumer electronics manufacturing

We set a 2030 target to cut the share of customer complaints linked to product safety issues from a 2024 starting point of 120 complaints to 72 complaints, measured across our own-brand devices sold in the EU and UK. The same measure is used to track progress each year, so the target, the starting point and the reporting metric all match.
- Baseline year: 2024; starting value: 120 complaints.
- Coverage: our own-brand devices sold in the EU and UK.
- Timeframe: end-2030.
- KPI link: the complaint count is the indicator used for target tracking.

This synthetic disclosure shows how to describe a social target with a clear starting point, a defined scope, a deadline and one metric used consistently for monitoring.

Illustrative (synthetic) example — food retail

We have a 2025 baseline of 8,000 customer service cases relating to accessibility barriers in our online ordering journey, and we aim to reduce that figure to 4,800 by 2028. The target applies only to our own website and app in the UK and Ireland, and we use the same case count as the performance measure throughout.
- Starting point: 2025 with 8,000 cases.
- Coverage: our website and app used by customers in the UK and Ireland.
- Deadline: 2028.
- KPI link: the accessibility-related case count is the measure tied to the target.

This synthetic disclosure shows a second way to present the same kind of information: the baseline, the business area covered, the end date and the linked performance measure are all stated plainly.

Quality ladder

  • Basic

    We are targeting a 20% reduction in customer complaints by 2028.

  • Better

    We are targeting a 20% reduction in complaints from users of our core service by 2028, measured against our 2025 baseline and tracked through our service-quality KPI.

  • Best

    We are targeting a 20% reduction in complaints from users of our core service by 2028, measured against our 2025 baseline and linked to our service-quality KPI; the latest increase reflects a higher customer base rather than a weaker service experience.

Check your understanding

Scenarios to work through

A consumer-products group has set a target to improve the safety of its packaging for customers who use the product at home. The draft note says the aim is to cut incidents, but it does not say which product line is covered or whether the target applies to all users or only a defined group.

QWhat should the preparer do before finalising the target description?
Reveal model answer →

A services company has a target to reduce complaints from vulnerable customers. The team has a headline percentage goal and a deadline, but the draft does not explain what starting point the target is measured against.

QHow should the baseline be handled in the disclosure?
Reveal model answer →

A retailer has set a goal to improve accessibility in its online checkout for older users. The draft says the aim will be reached 'in due course' and mentions a review next year, but it does not give a clear end date or milestone path.

QWhat decision should the preparer make about the timing information?
Reveal model answer →

A manufacturer reports a target to lower customer harm from product instructions that are hard to understand. The draft includes the target value and deadline, but it does not say which performance measure will be used to track delivery or how that measure connects to the target.

QWhat should the preparer check before sign-off?
Reveal model answer →
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Framework references

Relevant ESRS requirements and related disclosures

ESRS

S4-4

within ESRS S4: Consumers and End-users

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Guides that settle this question

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FAQ

Questions this page answers

For ESRS S4-4, what should I gather before drafting the disclosure on target values, covered products and users, starting point, delivery timetable and metric link?+
How do I use the step-by-step 'how to prepare' section for S4-4 in practice?+
What scope and methodology decisions do I need to settle for S4-4 before I write the disclosure?+
Who should own the S4-4 data points and evidence pack in my team?+
What evidence do I need to make an S4-4 disclosure assurance-ready?+
How do the six assurance claims for S4-4 help me check the disclosure before sign-off?+
What are the common reporting gaps or mistakes for S4-4 that I should avoid?+
How should I use the synthetic illustrative example disclosures for S4-4 without copying them into my report?+
What can I take from the S4-4 draft-output section when turning data into a narrative?+
How do I use the Prep & Assurance workbook for S4-4?+
What is the printable Library Card PDF for S4-4 useful for?+

More questions this page can help with

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