Sustainability in Dispute: The Rise of ESG in Arbitration

The convergence of Sustainability and ESG regulations is poised to significantly impact arbitration, as disputes are likely to arise concerning evolving standards, ESG compliance, and breaches of sustainability-related commitments. Arbitrators will increasingly require specialized expertise in ESG principles and regulatory frameworks to effectively address complex cross-border issues. Furthermore, arbitration will play a crucial role in resolving investment treaty disputes where ESG obligations intersect with investor rights and state commitments. In essence, the integration of ESG considerations is expected to transform arbitration, by requiring greater specialization, enhancing transparency, and ensuring closer alignment with global sustainability objectives.