A new report has exposed a torrent of greenwashing in South Africa’s fossil fuel industry, a dire warning for major polluters more invested in burnishing their image than reducing emissions.

The Fossil Ad Ban (FAB) report documented over 200 misleading sustainability-themed ads from various companies such as those in oil and gas, painting a picture of responsibility that, according to Energy Partners CEO, Manie de Waal, is “out of touch with reality”.

The report lands in the wake of the United States’ withdrawal from South Africa’s Just Energy Transition (JET) funding agreement, sparking calls for businesses to stop relying on political goodwill or superficial ESG strategies.

For De Waal, the solution is clear: measurable, operational sustainability is the name of the game. And it all starts with data: “Without accurate, complete and relevant data, ESG reporting, sustainability strategies, investor disclosures and regulatory submissions lie on shaky ground.”

Incomplete or estimated data undermine sustainability claims, risking regulatory penalties, shareholder action, reputational damage, and accusations of greenwashing. Even at its most optimistic, says De Waal, poor data leads to missed opportunities, inefficiencies, and an inability to properly drive operational improvements.

The real problem with ESG platforms

Many companies have invested in ESG platforms that look impressive on the surface, promising operational insights and automated reporting. Yet, explains De Waal, the software assumes that operations are already well metered, measurements accurate, and systems integrated. At best, these platforms then consolidate static data into pre-designed reporting templates.

“Unsurprisingly,” says De Waal, “many companies find the results of such platforms underwhelming. In essence, we’re seeing slick, graph-generating platforms, which initially impress, but very soon fall short, especially when good-looking graphs are flat-out wrong. The business model of global ESG platforms simply can’t afford the complexity of taking responsibility for local on-site metering and support.”  

Accurate ESG reporting is only possible with comprehensive, reliable and granular operational data. But “the reality is that even the largest corporates lack the level of data readiness these platforms assume you have in place. Too many companies still lack basic metering for electricity, water, fuel and waste. Site-level data often goes missing, gets estimated, or remains fragmented across systems, significantly impacting reporting accuracy.”

Laying the right foundation

Businesses can consider data platforms like Syntiro, developed by Energy Partners, that combine boots-on-the-ground metering expertise with integrated ESG platform design. Solve the metering challenge first, which is complex, asserts De Waal. Then consider layering on management and reporting tools.

This includes:

•                 Establish auditing facilities to identify existing metering capabilities and gaps.

•                 Install, calibrate and support meters for electricity, water, steam, gas and waste streams.

•                 Ensure systems deliver real-time, granular data from site level up.

•                 Integrate these verified inputs into a platform that supports aligned, audit-ready reporting.

“The payoff for working with real, measured data is profound,” says De Waal. “Companies gain granular insights, and in turn, they expose inefficiencies, drive resource optimisation and cut emissions and costs.

“As an example, we’ve recovered more than R600 million in inaccurate electricity billing of clients, as part of the work to install and calibrate the very meters which then feed into Syntiro and ESG reporting. Such (and other) operational efficiencies can be gained while also enabling credible reporting that truthfully aligns with leading standards.”

ESG reporting has now passed the box-ticking phase. There are very real consequences to the publication of ESG data.

More than financial inaccuracies, ESG reporting is very much tied up with corporate reputation and brand image - in a hyper-connected world, it counts to be on the right side of public opinion. But it’s also about investing in robust data to meet evolving disclosure rules, minimise operational risks, boost efficiency, access capital, and gain competitive advantage.

“There is only one common thread between companies successfully navigating the ESG space,” concludes De Waal. “Strong data infrastructure foundations. A journey that starts on the ground, not in the cloud.”