Companies Act 2014 section 1594

Exemption from section 1590 for certain subsidiaries

Section 1594 sets out the circumstances in which a subsidiary company that would otherwise be required to prepare its own sustainability report can be exempted from doing so, provided its sustainability information is covered by group-level reporting.

• A subsidiary included in its parent company's group directors' report (prepared in compliance with the Act's sustainability reporting requirements) may be exempt from individual sustainability reporting, subject to conditions in section 1595
• A subsidiary of a non-EU/EEA parent may also be exempt, provided the parent's consolidated sustainability reporting follows the required standards or EU-approved equivalent standards, and the section 1595 conditions are met
• Certain credit institutions affiliated to a central supervisory body, and certain insurance undertakings subject to group supervision, are treated as subsidiaries for the purposes of this exemption
• The exemption does not apply to large applicable companies that are public-interest entities with securities traded on regulated markets