Multinationals: AASB S2 Applies to Your Whole Group

If your company prepares consolidated financial statements in Australia and meets the AASB S2 thresholds at the consolidated group level, you’re considered in scope to report under AASB S2, regardless of whether subsidiaries are located in Australia or abroad.

AASB S2 uses the same boundary as financial reporting, meaning your climate disclosures must cover every entity included in your Australian consolidation, not just operations within Australia.

In practice, this means Australian-based multinationals need to collect climate data, assess risks, and describe governance processes across their global footprint, all aligned with group financial reporting and assurance systems.

What this means for multinational groups

Unifying Frameworks
One consolidated governance and reporting system brings consistency across the group and simplifies assurance.

Delegated Oversight
Each region must turn the group’s approach into action. Clear local roles ensure global policies are implemented and verifiable.

Recognising Regional Differences
Climate risks, regulations, and transition pressures differ by geography. Group disclosures must reflect those realities - not just head office assumptions.

If your group reports in Australia, AASB S2 applies to the whole group.

Start early - connect governance, data, and oversight across borders to make climate reporting seamless and credible.

Taking a coordinated approach now will make your first reporting cycle smoother and set a strong foundation for future assurance. A coordinated approach ensures responsibilities are clear, data flows consistently, and risks are managed across all regions. 

At Earthed, we help multinational groups make AASB S2 climate reporting practical, reliable, and aligned with their financial reporting across all regions, working alongside your teams to implement tailored solutions that make reporting efficient, credible, and ready for assurance.

Image by Javier Miranda