Investors Are Losing Patience with Poor ESG Data
As sustainability moves from the margins to the mainstream of financial decision-making, the pressure on companies to provide reliable ESG data is intensifying. Environmental, Social and Governance (ESG) performance is no longer a reputational bonus—it is now a core investment criterion.
According to PwC’s Global Investor Survey 2024:
94% of investors believe ESG data should be assured to the same standard as financial data
75% say they would penalise companies that fail to provide complete Scope 3 emissions disclosures
78% plan to reallocate capital away from ESG underperformers
The message is clear: vague estimates and partial disclosures are no longer acceptable.
Real-World Examples
This shift is already playing out in real time, as several high-profile cases have demonstrated the consequences of inadequate ESG data—particularly regarding Scope 3 emissions:
FTSE 100 Restatements
In 2024, 46 FTSE 100 companies were forced to restate their climate-related disclosures, largely due to errors or inconsistencies in Scope 3 data. The Deloitte 2024 ESG Reporting Review identified this as a significant compliance and credibility risk across the UK market.
Balfour Beatty
One of the UK’s leading infrastructure firms acknowledged that 84% of its total emissions fall under Scope 3—mostly from purchased goods and services. The company has since committed to investing in centralised systems to capture this data and reduce reliance on third parties. This step reflects the growing need for operational-level accountability.
BlackRock
Even the world’s largest asset manager was unable to report Scope 3 financed emissions in its 2023 report. Citing data limitations, BlackRock’s omission underscores an industry-wide struggle with Scope 3 traceability, and the urgent need for systemic solutions.
Equinor and Investor Divestment
Norwegian oil giant Equinor was fully divested by Sarasin & Partners in early 2025. The asset manager cited Equinor’s failure to align its business strategy with the Paris Agreement’s climate goals. This move marks a growing trend: investors are not just talking about sustainability—they are acting on it.
A Tipping Point for ESG Reporting
The pressure from investors, regulators, and the public is converging around a single issue: trust. Can stakeholders trust the data companies are reporting about their environmental performance?
For businesses, the implications are far-reaching. Those without credible, assured Scope 3 data may find themselves shut out of funding opportunities, removed from ESG indices, or subject to public and shareholder scrutiny.
Conversely, those that can demonstrate robust, transparent ESG reporting—particularly around value chain emissions—stand to gain investor confidence and competitive advantage.
Final Thought
The days of generic sustainability statements are over. Investors are demanding clarity, consistency, and accountability—especially in Scope 3 emissions. For companies, this is not simply a reporting challenge. It is a strategic imperative.