Research on MNE Liability for Environmental Damage Caused by Subsidiaries

Lawsuits against multinational enterprises (MNEs) due to environmental torts committed by their subsidiaries are increasing. Case law indicates that the direct reason for holding parent companies liable for the environmental torts of their subsidiaries is the duty of care that parent companies owe to their subsidiaries. The paper aims to analyse the logic behind MNEs being held liable for the environmental torts of their subsidiaries. The paper will analyse the reasons for imposing a duty of care on MNEs, the standards for holding MNEs liable through the duty of care, and the allocation of the burden of proof in environmental tort litigation. The paper employs a combined analysis of statutory law and case law. The conclusion drawn is that it is lawful and reasonable for MNEs to be liable for the environmental torts of their subsidiaries, but the boundaries of such liability need to be clearly defined, and the allocation of the burden of proof should be inclined towards the injured parties.