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ISSB Training Partner IFRS S2 · Climate-related Disclosures · Paragraph 33

Target characteristics

s2-33 · mandatory · narrative disclosure

This disclosure asks an organisation to explain the features of its climate-related targets in a way that lets readers understand what is being measured and how far the target reaches. In practice, that means setting out the target’s scope, the parts of the business it covers, the time period it applies to, and any assumptions or conditions attached to it. The aim is to make clear whether the target is broad and organisation-wide, or narrower and limited to particular activities, locations, or emissions sources.

Disclosure focus

The practical focus is on coverage and comparability: users should be able to see whether the target applies across all operations or only selected sites, business units, or value-chain activities. An organisation should therefore describe the boundaries of the target clearly enough for someone to judge how representative it is and how it should be interpreted alongside other climate disclosures.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official IFRS source.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

  • Reporting basis

    Sustainability reporting / performance management

    State whether the target is set on a whole-number basis or as a rate per unit of output, and keep the chosen basis consistent across the target statement and any progress updates.

    Evidence Target register, KPI definition sheet, methodology note, board paper approving the metric basis.

    Watch for The target is reported on one basis in the plan and a different basis in progress tracking, so absolute and intensity figures are mixed.

  • Reference year

    Sustainability reporting / strategy

    Record the specific starting year used to anchor the target, and make sure it matches the year used in the baseline calculation and any later comparisons.

    Evidence Target methodology, baseline workbook, approved strategy or transition plan.

    Watch for The baseline year does not match the year used in the source calculation, so the target is anchored to the wrong period.

  • Agreement alignment

    Sustainability / legal / policy

    Capture which external agreement or framework the target is tied to, and note the exact link used to justify that connection.

    Evidence Target rationale paper, policy mapping, board or committee approval pack, external framework cross-reference.

    Watch for The stated link is too loose or points to the wrong agreement, so the target is mapped to an external reference that does not support it.

  • Progress checkpoints

    Strategy / programme management

    List the interim checkpoints or milestone dates that sit between the start point and the end target, including the expected level or status at each checkpoint.

    Evidence Transition plan, milestone tracker, project plan, management reporting pack.

    Watch for Milestones are missing or set on a different timeline from the target, so interim progress cannot be tracked against the same schedule.

  • Target statement

    Sustainability / executive sponsor

    Write the plain-language aim the organisation is trying to achieve, using wording that is specific enough to show the intended outcome.

    Evidence Approved target wording, strategy document, board minutes, sustainability plan.

    Watch for The objective is phrased too vaguely or differently from the approved target, so the reported aim does not match the underlying decision.

  • Entity coverage

    Finance / group reporting

    Define which parts of the organisation are included in the target, such as subsidiaries, joint arrangements, or only selected operations, and keep that coverage consistent with the reporting boundary.

    Evidence Group structure chart, consolidation policy, boundary memo, target methodology.

    Watch for The organisational boundary used for the target does not reconcile to the reporting perimeter, so entities are added or left out.

  • Measurement metric

    Performance management / data analytics

    Identify the exact measure used to track the target, including the unit, calculation approach, and any denominator or conversion rule needed to reproduce it.

    Evidence KPI dictionary, calculation workbook, methodology note, source system extracts.

    Watch for The metric definition is not aligned with the source calculation, so the reported measure uses a different unit or formula.

  • Target timeframe

    Strategy / sustainability reporting

    Capture the period over which the target is meant to be achieved, including the end date or end year and any interim timing assumptions.

    Evidence Target register, strategy timeline, board-approved plan, project schedule.

    Watch for The target period is stated differently from the approved plan, so the end date or reporting window is wrong.

Before you start

  • Have you pinned down which parts of the business, sites, and activities this target covers?
  • Have you decided whether the figures will be shown as a total amount or relative to output, and what measure you will use?
  • Have you fixed the starting point year or date that the target is measured against?
  • Have you agreed the end date or target window, including any stepping-stone dates in between?
  • Have you checked that the target can be traced back to a source document or calculation trail?
  • Have you settled the objective, the metric, and the outside agreement or reference point the target is tied to?
+ Show s2-33 sub-elements (LRA working checklist)

How to prepare it

Set the boundary first: decide which parts of the business are included in the target and make that scope clear before you draft anything else.
Define the target itself in business terms: state the aim, the measure you will use, the period it covers, and whether progress is tracked as a total amount or as a rate against activity.
Pin down the reference point and pathway: record the starting year, the key waypoints on the route, and any link to an external international commitment that the target is tied to.
Gather support for each data point: collect the records, calculations, approvals, and source documents that back the scope, target wording, timing, and progress markers.
Prepare the disclosure content: assemble the figures or narrative for every required item, and make sure each one is complete, internally consistent, and aligned to the evidence you have.
Explain any gaps or revisions, then check the final wording against the official source so exclusions, changes, and definitions are all accurately reflected before issue.

Request the data

Request the target details and supporting evidence

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

What target have we set, over what period, for which part of the business, and what supporting records show the basis, milestones, and any link to an external climate pathway?

Use your organisation’s own terms first, then map them to the reporting fields. For example, if your team talks about a decarbonisation plan, net-zero roadmap, emissions reduction plan, or climate commitment, use that language in the request and only translate it into the reporting labels when you prepare the disclosure. Keep the ask practical and check the source records before sign-off.

Weak request

Please send the IFRS S2 target characteristics data for the disclosure.

Why it fails: This uses framework language only, so the owner may not know which internal records to pull. It also does not specify the business boundary, the target metric, the baseline, the time horizon, the milestones, or where the evidence sits, so the response is likely to be incomplete or inconsistent.

Better request

Please send the current climate target record for [boundary] for [period], including the metric used, baseline year and value, target end date, any interim checkpoints, whether it is set on an absolute or intensity-style basis, the objective it supports, any link to a named pathway or agreement, and the source document or system reference. Use your team’s own wording if that is how the record is held.

Formal email template
Subject: Request for target details and supporting records

Hi [name/team],

We are preparing the climate reporting pack and need the current target information plus the source records behind it.

Please send, for [reporting period], the details for [business boundary / entity set], including:
- the target metric used internally;
- the baseline year and baseline value;
- the target end date or horizon;
- any interim checkpoints or milestones;
- whether the target is framed on an absolute or intensity-style basis;
- the business objective it supports;
- any link to a named external pathway, agreement, or commitment; and
- the source document or system reference for each item.

If the wording in your team differs from the labels above, please use your own terms and we will map them during drafting. A possible LRA training template is attached for reference only; please adapt this to your organisation and check the source records before sign-off.

Many thanks,
[preparer name]
[role]
[contact details]
Short Teams / Slack version
Hi [name/team] — could you share the current target details for [boundary] for [period], plus the source record? We need the target metric, baseline year/value, end date, milestones, basis (absolute or intensity-style), objective, and any link to a named pathway/agreement. Please use your team’s own wording if different, and we’ll map it later. Thanks — [name]

Industry examples

Manufacturing

Context. A plant network tracks energy and emissions targets in an operations planning workbook and board pack.

Adapted request. Please share the current emissions reduction target record for the manufacturing sites in [boundary] for [period], including the internal KPI name, baseline year and value, target end date, interim checkpoints, whether the plan is framed as an absolute cut or an output-based measure, the operational objective, any link to a named climate pathway, and the workbook or board paper reference.

Example response. Target metric: site emissions intensity; Objective: reduce energy-related emissions across plants; Business boundary: three UK plants; Baseline year: 2022; Baseline value: 18,400 tCO2e; Target basis: intensity-style; Target end date: 2030; Interim milestone date: 2027; Interim milestone description: 20% reduction versus baseline; External pathway / agreement reference: linked to a named climate pathway; Evidence reference / link: operations workbook v4 and board paper dated [date]

Retail

Context. A retail group manages store and logistics targets through a sustainability dashboard and annual plan.

Adapted request. Please send the current climate target details for stores and distribution centres in [boundary] for [period], using the wording your team uses internally. We need the target measure, baseline year and value, target horizon, milestone dates, whether the target is absolute or intensity-style, the business aim, any link to a named external commitment, and the dashboard or plan reference.

Example response. Target metric: electricity-related emissions; Objective: lower operational emissions from stores and logistics; Business boundary: all owned stores and distribution centres; Baseline year: 2021; Baseline value: 9,250 tCO2e; Target basis: absolute; Target end date: 2030; Interim milestone date: 2026; Interim milestone description: 12% reduction versus baseline; External pathway / agreement reference: linked to a named international commitment; Evidence reference / link: sustainability dashboard export and annual plan appendix

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

We have described the target using the chosen measure, the basis used to express it, the starting reference point, the period it covers, the parts of the organisation included, any interim checkpoints, and the external agreement it is linked to.

Context note

Taken together, these figures show what the organisation is aiming to achieve, how progress will be measured, which parts of the business are in scope, and how the target sits within a wider international commitment.

Fluctuation statement

If the target design or timing changes, explain whether the revision affects the measure used, the reference year, the coverage of the organisation, the interim steps, or the link to the external agreement.

Content index entry

s2-33 Target characteristics — [location / page] / [notes]

Download Centre

Preparation tools & forms

Download preparation tools for s2-33 with free verified email access for 24 hours. Source-report links remain public.

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Check

For each claim, check the evidence

  • I grouped the disclosed targets by whether each one is set as a fixed amount or measured against a ratio, and I checked that every target in the pack was classified one way or the other.

    Risk The assurer may find a target left unlabelled, or a target described in a way that could be read as both types at once.

    Evidence to check Target inventory; working paper showing the classification for each target; draft-to-final review notes; sign-off sheet confirming no target was omitted from the classification check.

  • I included every climate target we had on record, including any that arise from law or regulation, rather than selecting only the ones we chose to highlight.

    Risk The assurer may suspect the set is incomplete or that mandatory targets were left out of the disclosure.

    Evidence to check Master target register; legal/regulatory obligations list; reconciliation between the register and the published table; evidence of review for completeness before publication.

  • For each target, I pulled together the core details from source files so the published set shows the measure used, the aim, the part of the business it applies to, the time horizon, the starting point, and any stepping-stone dates.

    Risk The assurer may conclude that one or more targets are missing a required descriptor, or that the descriptors do not match the underlying records.

    Evidence to check Source documents for each target; compilation spreadsheet; cross-check showing each target has the full set of fields; reviewer comments and resolution log.

  • I used the same starting period across the disclosure that was approved in the underlying target papers, and I checked that the published base period matches those records.

    Risk The assurer may question whether the starting point was changed, estimated, or applied inconsistently between targets.

    Evidence to check Approved target-setting papers; base-period calculation files; version history; evidence of review against the approved source data.

  • Where a target was shaped by an external climate agreement, I added a plain explanation of how that agreement fed into the target design, and I kept that explanation aligned to the supporting papers.

    Risk The assurer may challenge whether the link to the external agreement is real, sufficiently specific, or supported by contemporaneous evidence.

    Evidence to check Target-setting memo; board or management papers; policy notes referencing the external agreement; draft wording review showing the explanation was checked against source 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.

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 request goes to the wrong team, so the person who holds the target file or tracker never confirms the figures.
  • Framework terms firstThe data ask is written in reporting jargon instead of the organisation’s own labels, and the source team cannot map it to their records.
  • Scope left vagueNo one states which entities, sites, or activities sit inside the target set, so different teams pull different populations.
  • Wrong timing basisThe collection uses the reporting period when the target was set, or vice versa, so the dates do not line up with the underlying record.
+ Show 5 more

Judgement needed

  • Choosing the measurement basisDecide whether the target is tracked as a whole-organisation figure or as a rate, keep that choice consistent, and explain why it fits the target and how progress will be read.
  • Setting the starting pointUse one clearly identified starting period for the target, explain how it was selected, and say whether later restatements or recalculations will be applied if the baseline changes.
  • Linking the target to an external pathwayIf the target is tied to an outside climate pathway or similar reference point, state which one was used, how closely the target follows it, and where your own judgement departs from it.
  • Defining the covered part of the businessSpell out which entities, operations, sites or activities are included, and explain any exclusions so readers can see the same boundary used for the target and for progress reporting.
+ Show 6 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 — manufacturing

We set a group-wide climate goal for our own operations and purchased electricity, using 2024 as the starting point and 2035 as the end date. The goal is framed on an absolute basis for direct emissions and on an intensity basis for emissions per tonne of output, with progress tracked against a 1.5°C pathway aligned to the Paris Agreement.
- Our interim checkpoints are 2028 and 2031, each measured against the same 2024 starting point.
- By 2028 we aim to cut direct emissions by 25% from 2024 levels, and by 2031 by 45%; for emissions intensity, we target a 20% reduction by 2028 and 35% by 2031.
- The target covers our manufacturing sites and logistics operations in the UK and EU, but excludes joint ventures we do not control.

This example shows how a reporter can describe a climate target in plain language while covering the starting point, end point, interim checkpoints, the metric used, the organisational boundary, and the link to a recognised international climate pathway. It also shows that a target can be expressed both as a total reduction and as a reduction per unit of output, provided the basis is made clear.

Illustrative (synthetic) example — financial services

We have set a group climate objective for our lending and investment portfolio, with 2023 as the reference year and 2040 as the target year. The aim is expressed as an intensity measure for financed emissions, while also tracking an absolute reduction for the portfolio overall, and it is designed to support a net-zero pathway consistent with the Paris Agreement.
- Our milestone dates are 2027 and 2032, both compared with the 2023 reference year.
- By 2027 we plan to reduce portfolio emissions intensity by 18% and total financed emissions by 12%; by 2032 the intended reductions are 40% and 28% respectively.
- The scope includes corporate lending and listed equity holdings managed by our group, excluding client assets where we act only as custodian.

This example illustrates how a financial reporter can explain a climate target for a portfolio using both total and per-unit measures, while identifying the base year, the final date, interim milestones, the business area covered, and the international agreement connection. The figures are internally consistent and purely illustrative.

Quality ladder

  • Basic

    I am targeting a 30% cut in Scope 1 and 2 emissions by 2030.

  • Better

    I am targeting a 30% cut in Scope 1 and 2 emissions from our 2020 base year across our owned operations by 2030, with a 15% step-down by 2025.

  • Best

    I am targeting a 30% cut in Scope 1 and 2 emissions from our 2020 base year across our owned operations by 2030, with a 15% step-down by 2025, aligned to the Paris Agreement, and the recent slower progress reflects higher production volumes and delayed equipment upgrades.

Check your understanding

Scenarios to work through

A group sets a 2035 emissions goal for its own operations, but the draft note only says the target is to 'cut emissions' and does not say whether that is measured as a total amount or per unit of output. The same draft also leaves out whether the target covers the whole group or only selected sites.

QWhat should the preparer check before signing off this target description?
Reveal model answer →

A company has set a climate target against 2022 performance, but the draft report only gives the end date and the headline percentage change. It does not say what starting point the target is measured from, or how the target links to the wider climate pathway the company says it follows.

QWhat missing details matter here?
Reveal model answer →

A preparer drafts a net-zero plan with a final date in 2040 and one interim checkpoint in 2030. The note says the company will 'make progress along the way' but does not spell out the intermediate steps or the specific milestones that management will use to track delivery.

QHow should the preparer treat the interim steps in the disclosure?
Reveal model answer →

A business reports a 2030 target to reduce emissions from its manufacturing sites, but the draft note does not say what the target is trying to achieve in practical terms beyond the percentage cut. It also omits the target metric, so readers cannot tell whether the figure is tonnes, intensity, or another measure.

QWhat should the preparer make explicit in the final wording?
Reveal model answer →

Real reports

How 3 companies report it

Examples of full and partial reporting practice. These are evidence-led reviews, not exact disclosure templates to copy.

Real published reports

SITC International Holdings Company Limited

Exact

Water Transportation · Hong Kong · 2025 · p.197 ↗

SITC International Holdings Company Limited’s 2025 Environmental, Social and Governance Report provides a clear base year for its emissions data as 2021, specifically for scope 1 and 2 emissions (p.106). The report also references alignment with the Paris Agreement emission reduction curves, indicating an update to its emission reduction targets based on this international framework (p.77). However, the report lacks explicit disclosure on whether targets are expressed on an absolute or intensity basis, interim milestones, organisational scope, and the target period, while the metric used to set targets is mentioned but not clearly defined (p.197).

Chunghwa Telecom Co., Ltd.

Partial

Telecommunication Services · Taiwan · 2025 · p.33 ↗

Chunghwa Telecom Co., Ltd.’s 2025 Sustainability Report provides absolute targets for GHG emission reductions with a base year of 2020, reporting actual emissions of 681.3 thousand for Scope 1 and 2 (p.37), and sets a target to reduce electricity consumption by 216 million kWh by 2030 compared to 2020 levels (p.34). The report includes partial information on interim milestones and target periods related to climate resilience products and services but lacks clear headline values for these (pp.34-36). Notably, there is no evidence of linkage to international agreements, organisational scope, or specific target metrics within the report.

Hyundai Engineering & Construction Co.,Ltd.

Partial

Construction and Engineering · South Korea · 2025 · p.142 ↗

Hyundai Engineering & Construction Co., Ltd.'s 2025 Sustainability Report provides a base year value for non-renewable energy consumption in 2019, reported in MWh on page 50. The report includes some contextual references to climate-related targets and plans, such as mentions of target metrics on page 142 and climate-related transition plans on pages 41-42, but these disclosures are unclear and lack specific details. Notably, the report does not provide clear information on absolute versus intensity basis, interim milestones, target periods, organisational scope, or a narrative item related to the disclosure.
FieldSITC International Holdings Company LimitedChunghwa Telecom Co., Ltd.Hyundai Engineering & Construction Co.,Ltd.
Reporting basisNot foundNot foundNot found
Reference yearNot foundNot foundNot found
Agreement alignmentNot foundNot foundPartial
Progress checkpointsNot foundPartialNot found
Target statementNot foundNot foundNot found
Entity coverageNot foundNot foundNot found
Measurement metricPartialNot foundPartial
Target timeframeNot foundPartialNot found

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Framework references

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IFRS / ISSB

s2-33

within IFRS S2: Climate-related Disclosures

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FAQ

Questions this page answers

How do I use the s2-33 page to draft the disclosure from scratch?+
What data do I need to collect for s2-33 before I start writing the disclosure?+
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Who should own the inputs for s2-33 in practice?+
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