Requirements for inbound Australian subsidiaries

Inbound Australian subsidiaries of international groups are within the scope of the mandatory climate-related financial disclosure regime that the Australian government is introducing to apply to Australian entities. Access the EY Sustainability Disclosure Hub update paper, designed to support inbound Australian subsidiaries in understanding the requirements and the implications.

The Australian mandatory climate-related disclosure regime that is being incorporated into the Corporations Act 2001 will apply to more than just companies listed on the Australian Securities Exchange. Inbound subsidiaries that meet the reporting criteria will be required to prepare climate-related financial disclosures that comply with Australian Sustainability Reporting Standards. Climate disclosures prepared in accordance with these standards may not necessarily comply with sustainability disclosure standards being applied by the inbound entity’s parent. The Corporations Act will not permit an inbound subsidiary to meet its reporting obligations by lodging its parent entity’s consolidated sustainability report. Inbound subsidiaries must lodge their own report containing climate-related financial disclosures that are prepared at the inbound subsidiary reporting entity level and in accordance with Australian Sustainability Reporting Standards.

With reporting obligations approaching from 1 January 2025, starting the reporting journey early is critical to future success and to ensure that all disclosure requirements have been addressed and are ready to be assured as required.