ESG and investment arbitration: a future with cleaner foreign investment?

The importance of mitigating climate change, upholding good social policies and good governance have led to the rise and use of environmental, social and governance (ESG) factors in the world of finance and investment. Banks, funds and other financial institutions have increasingly sought to measure whether the investments they make promote ESG. This will invariably permeate the world of foreign investment law, as States and claimants become increasingly aware of ESG and ESG-related concerns. This article seeks to consider how the ESG movement has impacted international investment law and arbitration, and how is it likely to do so going forward.