The exemption for a subsidiary or intermediate parent whose information is included in a parent's consolidated sustainability report now also covers public-interest entities, and the old paragraphs that restricted it are deleted.
The requirement, in our words
The exemption for a subsidiary (or intermediate parent) whose information is included in a parent's consolidated sustainability reporting now also covers public-interest entities, including large listed ones that were previously excluded, provided the exemption conditions in Article 19a(9) or 29a(8) are met (naming the reporting parent, giving weblinks to its consolidated report and assurance opinion, and stating that the exemption is used). The simplified regime for listed small and medium undertakings and the deferral option for them are deleted, since those undertakings no longer fall within the duty.
Why it matters
The change matters to listed subsidiaries and to groups that have a public-interest entity in the chain. Before the amendment, a public-interest entity could not use the exemption in the same way. The replacement opens it, but the conditions remain: the subsidiary's information must be included in the parent's consolidated report, and the report and the assurance opinion must be available.
What changed
Article 19a(6) and (7) are deleted, Article 19a(10) is replaced, and Article 29a(9) is replaced. The effect is to align the exemption for public-interest entities with the general subsidiary exemption.
What to do
- Confirm that the subsidiary's information is included in the parent's consolidated sustainability report.
- Put a statement in the subsidiary's management report naming the parent and its registered office and claiming the exemption.
- Link to the parent's consolidated report and assurance opinion and check the links at publication.
Evidence to have ready
| Category | Artefact |
|---|---|
| Group reporting | Management report statement naming the reporting parent and its registered office and stating the exemption |
| Group reporting | Weblinks to the parent's consolidated management report and assurance opinion, checked as live at publication |
| Group reporting | Legal analysis confirming the parent's consolidated reporting covers the subsidiary and its own subsidiaries |
Common failures
- Exemption claimed although the parent's report is not prepared under the ESRS or an equivalence decision
- Weblinks missing or pointing to a prior year's report
Dates
Applies to financial years starting on or after 1 January 2027. The national measure is due by 19 March 2027.
The question to test
Does the management report name the parent and link to the consolidated report, or does it only say the subsidiary is exempt?
Cross-references
A2-8 Consolidated statement threshold · A2-10 Perimeter change option · A2-11 Financial holding option
Source
Article 2(4)(c) and (d), and Article 2(5)(e), amending Articles 19a and 29a of Directive 2013/34/EU; OJ L 2026/470, 26 February 2026; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32026L0470. Our statement of the duty, read from the Official Journal text and the held control record, not the instrument verbatim.
Not legal advice; does not certify. A reading of the duty and the evidence commonly sampled, not a substitute for the Official Journal text, the national transposing measure or your auditor's judgement.