NORWAY Law and Practice Contributed by: Elise Johansen, Tonje Hagen Geiran and Lene Marita Berg Hermann, Wikborg Rein Advokatfirma AS
For private law compensation claims under Pollution Control Act ( Forurensningsloven ), Chapter 8, parent companies generally cannot be held liable unless there is fault-based liability under general tort princi- ples or exceptional circumstances justifying piercing the corporate veil (though no Supreme Court judg- ment has expressly recognised veil piercing). Administrative authorities have discretion to choose among multiple responsible parties, and may address parent companies where they exercise effective con- trol or are best placed to ensure compliance. Corpo- rate restructuring, asset stripping or liquidation of sub- sidiaries does not eliminate parent company liability where they acquired responsibility through merger or continuation of polluting activities. 6.5 ESG Requirements Environmental requirements are primarily set out in the Pollution Control Act ( Forurensningsloven ), the Nature Diversity Act ( Naturmangfoldloven ) and sector- specific regulations. Companies and operators must comply with: • pollution limits; Enforcement is carried out by the Norwegian Environ- ment Agency ( Miljødirektoratet ) and other competent authorities through: • inspections; • orders; • coercive fines; and • in serious cases, criminal sanctions under the Penal Code ( Straffeloven ) (eg, intentional or grossly negligent pollution). Public reporting obligations apply to large industrial operators, including annual environmental reports and greenhouse gas emissions reporting. • reporting obligations; • permit conditions; and • environmental impact assessments. Social requirements encompass labour, health and human rights obligations under the Working Environ- ment Act ( Arbeidsmiljøloven ), anti-discrimination laws, and internationally aligned corporate responsibility
principles. Companies are expected to implement internal policies, conduct risk assessments, and pro- vide reporting, particularly under the new Norwegian Transparency Act ( Åpenhetsloven ), which requires dis- closure of due diligence related to human rights and fundamental labour rights. Governance requirements include internal controls, risk management, and compliance frameworks aligned with EU and national sustainability legislation, including the EU Corporate Sustainability Reporting Directive (CSRD) and the Taxonomy Regulation as implemented in Norway. Reporting is typically annu- al, through statutory filings, sustainability reports, and disclosures to authorities and stakeholders. Com- pliance is monitored through regulatory oversight, audits, and the possibility of administrative or civil enforcement. 6.6 Environmental Audits There is no general statutory requirement for inde- pendent environmental audits, but certain sectors have specific reporting and compliance obligations that function as internal or external reviews. Large industrial operators under the Pollution Control Act ( Forurensningsloven ) must monitor and report emis- sions, often with verification. Companies in the EU Emissions Trading System (ETS) must submit annually verified greenhouse gas reports. Major project permits may require environmental management systems or audits, and the implementation of the EU CSRD man- dates ESG reporting for large and listed companies, with independent assurance. Under Norwegian law, directors and officers can be held personally liable for environmental damage or breaches of environmental law in certain circum- stances. Personal liability typically arises where the individual has acted intentionally or negligently (ordi- nary negligence is sufficient under the Pollution Con- trol Act ( Forurensningsloven ), or has failed to exercise the required duty of care in supervising the company’s operations. Key sources of liability include the Pollu- tion Control Act, which imposes duties on operators 7. Personal Liability 7.1 Directors and Other Officers
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