Companies Act 2014 section 1590

Sustainability reporting

Section 1590 sets out the detailed sustainability reporting obligations that directors of applicable companies must fulfil each financial year within a dedicated section of the directors' report.

• Directors must report on how the company impacts sustainability matters and how sustainability matters affect the company's development, performance and position, in a clearly identifiable dedicated section of the directors' report
• The report must cover the company's business model and strategy (including climate transition plans aligned with the Paris Agreement's 1.5°C target and climate neutrality by 2050), time-bound targets such as greenhouse gas reduction goals for 2030 and 2050, sustainability policies, due diligence processes, principal risks and relevant indicators
• Information must span short-term, medium-term and long-term time horizons and cover the company's own operations and its value chain, though a three-year transitional relief allows companies to explain gaps in value chain data rather than provide complete information immediately
• Directors must describe the process used to identify the reported information, prepare it in accordance with sustainability reporting standards, and may only omit commercially sensitive information about pending developments in exceptional cases where disclosure would be seriously prejudicial and the omission does not prevent a fair understanding of the company's position