As many as seven in 10 (71%) high-value decisions made by UK businesses are based on incomplete or partial data, according to a new study from EY.

The research, which surveyed 250 leaders of UK companies with revenues above £100m, found that of business decisions of £50k spend made in the past year – and which were deemed as having a measurable impact on a firm’s finances, risk, operations or reputation – only 29% were made with complete and reliable data, while 71% were made without access to this calibre of information. Nearly one in 10 (8%) high-value decisions was made with very limited or poor-quality information.

Nearly three-quarters (73%) believe non-financial data, including information relating to environmental, social and governance performance, is equally important as financial data. 70% say that integrating financial and non-financial data is the only way to gain a complete picture of an organisation’s performance and value.

Fewer than four in 10 (37%) UK business leaders have access to real-time financial data. While only 14% have access to real-time non-financial data.

When asked about the risks they associated with failing to report non-financial information transparently, more than three-quarters (76%) of the UK business leaders surveyed cited loss of stakeholder trust, including from investors and customers, while two-thirds (66%) highlighted reputational damage and loss of confidence (60%).

Rebecca Donnellan, partner, climate change and sustainability, at EY, said: “Companies are experiencing clear tension between the need to navigate threats, such as supply chain disruption or reputational damage, and to seize the growth opportunities that come their way. Making the right strategic decisions to grow businesses and protect value has never been more critical, whether focusing on digital transformation, mergers and acquisitions, long-term strategies, or broader organisational priorities. And, fundamentally, the quality of these decisions depends on the accuracy and breadth of the information underpinning them.

“We’re encouraging companies and business leaders to put access to this data and non-financial reporting on a par with financial reporting, and hold both to the same standards internally. Organisations that act now to build structured and integrated approaches should be better equipped to meet evolving expectations, enhance performance, and ensure long-term value.”

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