Businesses Face Heightened Scrutiny Over Accuracy of Carbon and Environmental Reporting

Businesses across the UK are facing increased scrutiny over the accuracy and reliability of their environmental data, as regulators, investors and customers raise concerns about inconsistent carbon reporting and weak supporting evidence.

Environmental advisers say that while many organisations now publish sustainability figures, a growing number are struggling to demonstrate how those figures are calculated, verified and controlled.

Recent reviews by assurance bodies and auditors have identified recurring issues in greenhouse-gas reporting, particularly around Scope 3 emissions, energy-use assumptions and data sourced from suppliers.

In several cases, organisations were unable to trace reported figures back to primary data or explain significant year-on-year changes in emissions intensity.

A spokesperson for the Environment Agency said environmental data quality is becoming an enforcement and assurance priority. “We are seeing an increase in environmental disclosures, but also an increase in questions about how reliable that information is. Where data underpins regulatory reporting or public claims, it must be accurate, transparent and supported by evidence.”

Industry specialists say the issue is being driven by rapid expansion of ESG reporting requirements, combined with limited internal capability. Many businesses now collect environmental data across multiple sites, systems and suppliers, often relying on estimates or spreadsheets that were never designed for audit or regulatory review.

“Carbon reporting has moved faster than environmental management systems in many organisations,” said Louise Carter, an environmental assurance consultant working with mid-sized businesses. “The intention is good, but the controls aren’t always there. When figures are compiled manually from multiple sources, errors and assumptions quickly creep in.”

The problem is particularly pronounced in supply-chain reporting, where businesses depend on emissions data provided by third parties. Auditors report cases where suppliers use different calculation methodologies, outdated emission factors or incomplete activity data, making consolidated reporting unreliable. Some organisations have responded by applying broad averages, which may satisfy high-level reporting but lack precision.

Commercial risks are also increasing. Large buyers and public-sector bodies are now requesting detailed environmental data as part of procurement and contract management. In several sectors, suppliers have been challenged on discrepancies between published sustainability statements and the evidence provided during tender evaluations.

A representative from a national manufacturing trade body said: “Environmental data is becoming contractual. If you can’t stand behind your numbers, you risk losing work. This is no longer just about reputation - it’s about commercial credibility.”

Some organisations have begun strengthening controls by integrating environmental data into formal management systems, assigning ownership of key metrics and introducing internal audits focused specifically on environmental information. Others are seeking independent verification to build confidence in reported figures.

Environmental professionals say the shift reflects a broader change in expectations. “Environmental performance isn’t just about outcomes anymore,” Carter added. “It’s about governance, traceability and control. The organisations that treat environmental data with the same rigour as financial data will be the ones best placed to respond to scrutiny.”

As reporting obligations and stakeholder expectations continue to evolve, environmental data quality is expected to become a defining issue for businesses seeking to demonstrate credible environmental performance under frameworks such as ISO 14001.

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