FTSE companies making more sustainability restatements, Deloitte finds 

Almost half (46) of FTSE 100 companies made material prior-year adjustments (PYAs) to their climate and sustainability metrics for the second year in a row, Deloitte has found. 

While the total number of companies making adjustments remained unchanged, the firm’s analysis showed that six more companies made multiple adjustments this year, resulting in a total of 69 individual adjustments.

The latest analysis looked at climate and sustainability disclosures in the most recently published annual and/or sustainability reports as of 31 December 2024. Of these, 25 (60%) that reported a PYA last year did so again this year.

Of the restatements made, 77% related to greenhouse gas (GHG) emissions metrics, with the remainder (23%) being a variety of other sustainability topics (including waste, water, diversity and inclusion, and health and safety). In comparison, last year 89% related to GHG emissions.

This year, the most frequent reason for a PYA was a change in method (35%), compared with 44% of PYAs reported in 2024. Adjusting for errors in historical reporting was slightly less common, with 26% relating to correction of errors, compared with 29% of PYAs last year.

Steve Farrell, partner and head of sustainability assurance at Deloitte UK, said: “Our analysis shows that these adjustments are now a regular feature of FTSE 100 climate reporting. 

“Whilst the number of companies with material adjustments is the same as last year, this remains a significantly high amount, with continued challenges in getting sustainability reporting right. However, some of these companies have adjusted due to data improvements – that’s a real positive – showing reporters are focusing on better quality reporting.”

He added: “This is reflective of the continued focus on improving reported GHG information, whilst at the same time, companies are considering the quality of a broader set of key sustainability information outside of GHGs.”

Emily Hesketh, sustainability assurance partner at Deloitte UK, said: “There are many challenges when it comes to sustainability reporting, and sustainability restatements are likely to continue for the foreseeable future. Caution is needed by the users of the information – including regulators, investors, and customers – when relying on the reported data to understand the progress companies are making to meet their targets.”