Aerial view of a landscape divided by a river

Requirements for inbound Australian subsidiaries

Related topics

Inbound Australian subsidiaries of international groups are within the scope of the mandatory climate-related financial disclosure regime that will 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 has been incorporated into the Corporations Act 2001 and applies 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 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.

Download this EY Sustainability Disclosure Hub Resource

Summary

The EY Sustainability Disclosure Hub offers practical guidance to assist companies across the region prepare for mandatory reporting of climate and sustainability-related reporting. Please reach out to our Sustainability Disclosure Hub team to discuss what the requirements in the exposure draft mean to you.

About this article

Authors