Advancing Transnational Corporations’ Overseas Environmental Accountability
The Impact of Mandatory Non-Financial Reporting on Foreign Direct Liability Claims before European National Courts
Keywords:Environmental harm, foreign direct liability, non-financial reporting, duty of care, parent company, directive 2014/95/EU
This paper addresses the extraterritorial dimension of transnational corporations, focusing on the corporate
accountability-deficit that characterizes the current International legal framework. The analysis looks at parent
companies’ civil liability for environmental harm caused abroad. By introducing a selected number of foreign direct liability cases brought before European national courts, the paper investigates whether the binding environmental and human rights reporting obligations contained in Directive 2014/95/EU contribute to the determination of a parent company’s duty of care towards its overseas subsidiaries, and consequently establish their potential liability.
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