International Arbitration & ESG : A New Trend In Dispute Resolution

INTRODUCTION

In very recent times, the world at large has seen an increase in awareness regarding Environmental, Social, and Governance (ESG) issues, including the resultant effects of climate change and environmental degradation.

Some notable developments have occurred, and these developments have started to affect and will continue to affect how Companies in the different jurisdictions are responding and will respond to ESG issues. The recent Shell decision which was given by the Hague District Court would be the first time a court has actually imposed a legal obligation on a company to reduce its CO2 emissions,¹ a pointer to the fact that ESG issues are a growing concern in the international space. Also, The European Commission's 'Fit for 55%' policy² is one which intends to achieve a 55% reduction in carbon emissions by 2030 and net zero by 2050, and is also a pointer to the fact that the global world is experiencing quite an upsurge in ethical standards