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ISDS and ESG: Friends or Foes?

26/02/2024

Traditionally, investor-state dispute settlement (“ISDS”) has not been linked to Environmental, Social, or Governance principles (“ESG”)

A growing number of arbitrations revolve around matters like environmental permits, green incentives, the need for a “social license,” and corruption. Interestingly, these matters have arisen even in the absence of explicit ESG regulations in the majority of the older generation of international investment agreements (“IIAs”).

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