Investor-state dispute settlement (ISDS) has been described as “a major obstacle to the urgent actions needed to address the planetary environmental and human rights crises.”

There is growing awareness that the use of ISDS by fossil fuel companies can have a powerful chilling effect on climate policy, undermining the goals of the Paris Agreement. But it is also not on the radar of many institutional investors, meaning companies are often wielding a powerful legal mechanism without adequate oversight.

ACCR, together with Fair Finance International and the Centre for Research on Multinational Corporations (SOMO), hosted a webinar for institutional investors to learn more about ISDS.

We discussed:

  • Regulatory chill and investor risk – What risks does the use of ISDS pose for institutional investors when it is used to block positive climate policy?
  • Protecting long-term value - Why is the climate-related use of ISDS an issue that threatens the long-term returns of diversified asset owners and managers?
  • The lack of transparency of the ISDS regime – How can investors overcome and negotiate the obstacles this creates for oversight and responsible stewardship?
  • Improving governance and setting expectations – How can institutional investors engage with their portfolio companies on ISDS?

Speakers:
Adam Gillett, Senior Investment Manager in the Sustainable Ownership team of Railpen
Dr Kyla Tienhaara, Associate Professor in the School of Environmental Studies and Department of Global Development Studies at Queen’s University
Simon Batifort, Partner at international law firm Curtis Mallet-Prevost Colt & Mosle LLP

Download Investor Bulletin: Chill factor – How does investor-state dispute settlement affect climate policy? | 1/10/2024

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