Disclosure focus
This disclosure asks an organisation to explain the social targets it has set in relation to affected communities, and to show how those targets connect to its impacts, risks and opportunities. In practice, the report should make clear what the target is trying to achieve, the baseline or starting point, the timeframe, and how progress is being tracked. It is not enough to list ambitions in general terms; the organisation should show that the targets are specific and linked to the issues that matter for communities.
The practical focus is on whether the targets are meaningful across the parts of the business that create the relevant community impacts, rather than only at a few visible or flagship locations. Organisations should therefore consider whether targets apply across operations, projects, sites, or value chain activities where community effects arise, and explain any exclusions or differences in coverage. The aim is to help readers understand how the organisation is using targets to manage and improve its relationship with affected communities in a consistent way.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official EFRAG 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 S3-4 sub-elements (LRA working checklist)
Set out the starting point used for comparison.
Show how the measure connects to the relevant performance indicator.
State which communities or places the measure covers.
Give the target figures to be reached.
Specify the time period for delivery.
How to prepare it
1Set the boundary first: decide which communities and which places are covered by the target, so the scope is clear before you draft anything else.
2Define the target in business terms: state the value you are aiming for, the starting point you are measuring from, and the time period over which progress is expected.
3Link the target to the right performance measure: identify the KPI or other metric that will be used to track progress, and make sure it matches the target you have set.
4Gather the support behind the numbers or narrative: collect the records, calculations, and source material that show how the target, baseline, timing, and KPI connection were determined.
5Record any limits or changes: explain any parts of the scope you left out, and note any changes to the target, baseline, timing, or metric so readers can see what has shifted.
6Check the final disclosure against the official source: confirm that the scope, target value, baseline, timeline, and KPI linkage are all covered consistently and without gaps.
Request the data
Request the community target details and supporting evidence
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
What community-related targets has the business set, and what are the baseline, timing, scope and KPI links behind them?
Use your organisation’s own wording first, then map it to the reporting fields. For example, if you talk about neighbourhood programmes, local partnerships, beneficiary groups or place-based commitments, use those terms in the request and only translate them afterwards for reporting. Keep the ask in business language, not framework language, and check the source material before sign-off.
Weak request
Please provide the ESRS S3 targets, including the baseline, scope, timeline and KPI linkage.
Why it fails: This uses framework wording that many operational owners will not use day to day, so it can slow down the response and lead to partial or misread answers. It also does not tell the owner what internal artefacts to pull together or how to present the information in their own language first.
Better request
Please send the current community commitment targets for [programme / area] for [reporting period], using your team’s own terms first. Include the target wording, starting point, timing, the community or geography covered, the linked measure, the source file or system, and any changes during the period.
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
We have described the target using the measure selected for tracking, the starting reference point, the intended end value, the period over which it is meant to be achieved, and the communities or places it covers.
Context note
These figures show the intended change from the opening position to the planned end point, and they indicate which communities or locations are included in the commitment.
Fluctuation statement
If the figures move over time, explain whether the change reflects a revised target level, a different starting reference, a shift in timing, or a change in the communities or geography covered.
Content index entry
S3-4 Targets — [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 team asks the wrong business lead for the target figures, so the numbers come from someone who does not hold the working records.
Framework language instead of local terms
People ask for the target using framework labels rather than the organisation’s own operational wording, and the source team cannot map the request to its records.
Scope left vague
The data pull starts before anyone has fixed which communities and which geography are in or out, so the figures mix different populations.
Baseline not pinned down
The baseline is collected without a clear reference point, so later updates cannot be compared back to the same starting set.
Wrong timing basis
The team gathers the target information against the wrong period or cut-off, which makes the figures out of step with the reporting year.
Counting bases mixed
Different teams use different counting methods for the same target, and the final pack blends unlike measures into one number.
Source labels lost
The original file names, system tags, or table labels are dropped during collection, so the audit trail no longer shows where each figure came from.
Populations merged too early
Separate groups are combined before review, even though they should stay distinct for the target analysis and later write-up.
Evidence metadata missing
The pack is saved without dates, version marks, or document references, so no one can tell which source set was used.
No sign-off trail
The collected figures move forward without a named reviewer or approval record, leaving no clear trace of who checked them before drafting.
Where judgement is often needed
Choosing the target population when the footprint changes
If sites, programmes, or communities are added or removed through acquisitions, disposals, or reorganisation, explain whether the target set is frozen to the original footprint or reset to the new operating map, and show how the change affects the target value, baseline, and timing.
Aligning local definitions across countries
Where the same social issue is described differently in different countries or business units, set out the common internal definition used for the target and explain any local exceptions, so readers can see what is counted in and out.
Deciding who sits just inside or outside the target group
State the inclusion rule for people or communities on the boundary of the target population, such as temporary, indirect, seasonal, migrant, or otherwise hard-to-classify groups, and explain any exclusions that materially affect the result.
Fixing the baseline date and comparison method
Explain which starting point was chosen for the target and why, especially if the first reliable dataset is not the earliest period available, and disclose any restatements or adjustments made so the baseline stays comparable over time.
Setting the end date and interim milestones
Describe whether the target is a single end-point, a staged path, or a rolling commitment, and make clear how interim checkpoints are measured and what happens if the organisation changes its planning cycle.
Using measured data versus estimates
If complete field data are not available, say where estimates, proxies, or sampled figures were used instead of direct counts, and explain the method, the main assumptions, and any known limits on accuracy.
Handling rounding and small-number effects
Set out the rounding rule used for target values and progress figures, and note when small populations or low counts can make percentages look unstable or mask meaningful movement.
Protecting privacy through aggregation
Where individual-level detail cannot be shown safely, disclose the level at which the data are grouped, explain how that grouping still supports the target, and note any trade-off between privacy protection and precision.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — food processing
We set a 2028 goal to cut the share of workers in our direct operations who report low trust in grievance handling from a 2024 starting point of 18% to 8%, covering our own sites in three countries where we employ 12,500 people. Progress is tracked through our employee trust score, which is the KPI linked to this target, and we review it annually against the same baseline so the trend is comparable over time.
This example shows how to describe a social target in plain language: state the starting point, the intended end point, where it applies, when it should be reached, and which metric is used to monitor it.
Illustrative (synthetic) example — consumer electronics assembly
We are aiming by 2030 to reduce the proportion of contract workers in our assembly and testing operations who say they would not raise a concern through our channels from a 2025 starting level of 24% to 10%, across four manufacturing locations in two regions where we have 9,000 direct and agency workers. The measure we use to follow this commitment is our speak-up confidence KPI, and we compare each year’s result with the 2025 baseline.
This example shows a second way to present the same kind of information: make the target, starting point, deadline, location coverage, and linked performance measure easy to identify without copying the standard’s wording.
How companies report S3-4 in practice
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Continental AG
Tires · Germany · 2025
Continental AG’s 2025 Annual Report provides covered data on Scope 1 and Scope 2 greenhouse gas emissions intensity related to tire production, indicating targets achieved by 2025 (p.133), and notes that coverage exceeds 90% with main and interim targets extending to production in own tire operations, based on a 2019 base year (p.128). The report also references data collection at the level of key actions within the transition plan (p.143) and mentions targets supporting waste hierarchy recycling and prevention levels (p.162). However, the disclosure of some narrative items remains unclear, such as the adjustment of intensity targets without changes to the fundamental target pathway (p.129), and several expected datapoints are not found in the report.
Hyundai Engineering & Construction Co.,Ltd.
Construction and Engineering · South Korea · 2025
Hyundai Engineering & Construction Co., Ltd.'s 2025 Sustainability Report includes a covered narrative on page 22 outlining their commitment to achieving carbon neutrality by 2045 and implementing carbon reduction measures. However, beyond this, no other quotable evidence related to the disclosure was found in the report. Notably, several expected narrative items are missing or unclear, as no additional detailed information or data points were located elsewhere in the document.
Aena S.M.E., S.A.
Air Transportation — Airport Services · Spain · 2025
Aena S.M.E., S.A.’s 2025 Sustainability report does not provide direct quotable evidence for the disclosure in question, as no specific narrative items were found in the report (no page). The report references other linked datapoints related to environmental and social standards, such as ESRS 2 and various E and S codes, but these are not elaborated within the report itself (p.182, p.136). Consequently, the report lacks clear, standalone information on the disclosure, making it unclear how the company addresses this specific topic.
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Check your understanding
Scenarios to work through
Your community-relations team has agreed a target to improve access to local jobs in two districts where your operations are concentrated. The draft note says the aim is to 'increase opportunities' but does not say which districts are covered, what starting point was used, or when the change should be achieved.
QWhat should you add before sign-off so the target can be understood as a proper reporting item?
Reveal model answer →Hide answer ↑Set out the target in a way that shows three things clearly: which communities or places it covers, the starting point used for comparison, and the date or period by which progress is meant to be reached. If the target is linked to a wider indicator, make that connection explicit as well. A possible LRA training template would be: 'Adapt this to your organisation: the target applies to [named communities / area], is measured against [baseline date and value], and is intended to be reached by [date]. It is linked to [named KPI].' Check the official source before sign-off.
Why this matters · A target only works for reporting if the reader can see its scope, starting point, timing and any linked performance measure.
A business unit has a target to reduce complaints from residents near one site. The draft uses last year’s complaint count as the reference point, but the team has not explained whether that count is the baseline for the target or just background context.
QHow do you decide whether the reference point is good enough for the disclosure?
Reveal model answer →Hide answer ↑Use a baseline that is clearly identified as the comparison point for the target, not just a general historical figure. The reader should be able to tell what the target is being measured against and how progress will be judged. A possible LRA training template would be: 'Adapt this to your organisation: the baseline for this target is [date / period] with [value], and all future progress will be compared with that starting point.' Check the official source before sign-off.
Why this matters · If the starting point is unclear, the target cannot be tracked in a meaningful way.
Your sustainability team has drafted a target to improve community engagement scores across all operating areas, but the KPI dashboard only tracks engagement at one flagship site. The draft also leaves out any mention of how the target connects to that dashboard measure.
QWhat is the key judgement on the KPI link before the disclosure is finalised?
Reveal model answer →Hide answer ↑Make sure the target is tied to the performance measure that actually tracks it, and that the link is described in a way that a reader can follow. If the target covers more than one site or community, the linked indicator should match that same scope or the mismatch should be explained. A possible LRA training template would be: 'Adapt this to your organisation: this target is monitored through [named KPI], which covers [same scope as the target].' Check the official source before sign-off.
Why this matters · The target and the performance measure should line up, otherwise progress can be misread.
Management wants to report a target to increase local procurement from community suppliers over the next three years. The draft says the target is 'long term' and mentions a procurement metric, but it does not say whether the metric is the one used to monitor delivery or whether the timeline is fixed.
QWhat should the preparer resolve before the target is included in the report?
Reveal model answer →Hide answer ↑Clarify the time horizon and the monitoring measure together. The target should state when it is meant to be achieved, and if a metric is used to follow progress, that metric should be identified as the one linked to the target. A possible LRA training template would be: 'Adapt this to your organisation: the target runs from [start date] to [end date], and progress is tracked using [named metric].' Check the official source before sign-off.
Why this matters · A target needs a clear end point and a clear way of tracking delivery.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
How do I use the S3-4 Affected Communities page to draft the disclosure from scratch?+−
Start with the plain-language explainer, then work through the step-by-step preparation section to gather the listed datapoints and shape a first draft. The page also gives narrative starters and a content-index line you can use to turn the data into report-ready wording.
What datapoints do I need to collect for S3-4 Affected Communities before I can draft the disclosure?+−
The page says to prepare five datapoints: target setting, affected area, starting point, delivery timetable and metric link. Use those as your minimum data set before you write the narrative or build the table.
How should I define the affected area for S3-4 Affected Communities in practice?+−
The page flags affected area as one of the datapoints to prepare, so you should identify the area covered by the disclosure and keep the scope consistent across your narrative, table and evidence pack. The page does not give a formal definition, so use the explainer and your internal records to keep the scope clear and documented.
What does the S3-4 starting point mean and how do I evidence it?+−
Starting point is one of the datapoints the page tells you to prepare, so you should capture the baseline you are measuring against before the target or action plan begins. The evidence pack and assurance claims sections are there to help you show where that baseline came from and why it is reliable.
How do I set ownership for the S3-4 Affected Communities disclosure across ESG, HR and data owners?+−
Use the step-by-step preparation section to assign who owns each datapoint and who signs off the draft. The workbook is designed to help you organise that work so the narrative, data and evidence are all traceable to the right owner.
What should I include in the evidence pack for S3-4 Affected Communities to be assurance-ready?+−
The page includes an evidence pack with five items specifically for assurance readiness, so you should assemble those materials alongside the draft. Keep the pack linked to the five assurance claims so a reviewer can trace each claim back to supporting evidence.
What are the five assurance claims on the S3-4 page and how do I use them?+−
The page lists five assurance claims with a claim, risk and evidence view, which you can use to test whether the disclosure is supported and internally consistent. Treat them as a checklist for challenge, not as a substitute for your own controls and source documents.
What common mistakes does the S3-4 Affected Communities page warn me to avoid?+−
The page has a section on common reporting gaps and mistakes, so use it as a pre-submission check before you finalise the draft. It is especially useful for spotting missing datapoints, weak evidence or inconsistent wording between the narrative and the table.
How do I use the Prep & Assurance workbook for S3-4 Affected Communities?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format, which you can use to organise the datapoints, evidence and assurance checks before drafting. It is meant to support preparation rather than replace judgement or internal review.
What can I do with the printable Library Card PDF for S3-4 Affected Communities?+−
The Download Centre also provides a printable Library Card in .pdf format, which is useful as a quick reference while you are preparing the disclosure or checking a draft. Use it alongside the workbook if you want a lighter-weight working copy.
How do the synthetic example disclosures on the S3-4 page help me write my own draft?+−
The page includes synthetic illustrative examples, including a quantitative table, to show how the disclosure can be presented in practice. Use them as formatting and drafting aids only, and keep your own numbers and wording consistent with your actual data.
More questions this page can help with
S3-4 Affected Communities: what should I gather before starting the disclosure draft?S3-4 Affected Communities workbook: how do I use it to prepare the disclosure and evidence pack?S3-4 Affected Communities assurance: what evidence do I need for the five claims?S3-4 Affected Communities common mistakes: what should I check before sign-off?S3-4 Affected Communities narrative starters: how do I turn the datapoints into report wording?S3-4 Affected Communities content-index line: how do I use it in a draft report?S3-4 Affected Communities example disclosure: how should I use the synthetic table without copying it?S3-4 Affected Communities evidence pack: what should be in it for assurance readiness?S3-4 Affected Communities affected area: how do I keep scope consistent across the draft?S3-4 Affected Communities delivery timetable: how do I document it in the disclosure?S3-4 Affected Communities metric link: how do I connect the target to the metric in the draft?S3-4 Affected Communities from company reports: how do I use the linked examples for drafting ideas?
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