Companies Act 2014 section 1592

Derogation from section 1590 for certain applicable companies

Section 1592 allows certain applicable companies to provide simplified sustainability reporting instead of the full requirements, and grants a temporary exemption from sustainability reporting for listed small and medium-sized companies for financial years beginning before 1 January 2028.

• Certain applicable companies may limit their sustainability reporting to core items: business model, sustainability policies, adverse impacts, principal risks, and key indicators
• Companies using simplified reporting must follow the EU Commission's sustainability reporting standards designed for small and medium-sized undertakings
• Listed small and medium-sized companies may opt out of sustainability reporting entirely for financial years starting before 1 January 2028
• Companies exercising the temporary opt-out must include a brief explanation in their directors' report stating why sustainability reporting was not provided