Companies Act 2014 section 1598

Exemption from section 1596 for certain subsidiaries

Section 1598 sets out the circumstances in which a parent company that is itself a subsidiary of another undertaking may be exempted from the requirement to prepare consolidated sustainability reporting under section 1596.

• A parent company that is a subsidiary of an EU/EEA undertaking is exempt from consolidated sustainability reporting if it and its subsidiaries are covered by its own parent's group directors' report prepared under the relevant parts of the Act, and the conditions in section 1599 are satisfied
• A parent company that is a subsidiary of a non-EU/EEA (third-country) undertaking can also qualify for exemption, provided the third-country parent's consolidated sustainability reporting follows the required standards or EU Commission-approved equivalent standards, and the section 1599 conditions are met
• Certain credit institutions permanently affiliated to a central supervisory body, and insurance undertakings subject to group supervision, are treated as subsidiaries of that central body or group holding company for the purposes of these exemptions
• The exemption is not available to any parent company that is a public-interest entity with securities admitted to trading on a regulated market