Amicus Curiae Brief presented by ClientEarth 21 November 2016 United Nations (in the Guiding Principles) and the OECD in its Guidelines on Multinational Enterprise;76 c. it overcomes the formalism of entity theory which "ignores the economic reality of the relationship between parent corporations and their subsidiaries" and better aligns with the expectations of the public;77 and d. it is the only logical way to assess the causation of climate change which is a global problem on a global scale caused by greenhouse gas emissions from a wide number of actors over a long period of time. 99. Furthermore, it is generally only at the level of the parent company where top line strategic decisions regarding the emissions intensity of products, capital allocation and the mix of energy sources in a company's portfolio can be made. Accordingly, only the parent entity has the power to set corporate policy in respect of greenhouse gas emissions and consequent environmental implications. 100. Finally, the majority of the respondent companies named in Annex C to the Petition report (either voluntarily or under national regulation) their greenhouse gas emissions on a group-wide basis, consistent with the practice of consolidating the company's financial accounts (and in accordance with the Greenhouse Gas 76 The OECD Guidelines on Multinational Enterprise state that the Guidelines "extend to enterprise groups...Compliance and control systems should extend where possible to these subsidiaries". OECD Guidelines on Multinational Enterprises (as revised on 25 May 2011), II, General Policies, Commentaries, para 9. 77 Ibid, 209. 48

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