Corporate Environmental Responsibility in Investor-State Dispute Settlement: The Unexhausted Potential of Current Mechanisms

This book explores the potential of the investor-state dispute settlement (ISDS) mechanism to hold foreign investors accountable for their actions. It incorporates recent developments in corporate responsibility and reflects the interests of victims who have suffered loss and injury. The author argues that the current system has the potential to advance responsible investment, but reforms are needed to overcome its limitations.

Format: Hardback
Length: 300 pages
Publication date: 08 December 2022
Publisher: Cambridge University Press

This comprehensive book delves into the potential of the current investor-state dispute settlement (ISDS) mechanism to hold foreign investors accountable through states' counterclaims and defenses across jurisdictional, merits, and quantum phases. By incorporating the recent developments of ISDS in international and domestic laws on corporate responsibility, including the due diligence obligations of parent companies and the legal consequences of corporations' voluntary commitments, the book aims to enhance the understanding of corporate responsibility in ISDS. Moreover, it sheds light on the interests and perspectives of the victims who have suffered loss and injury due to investors' conduct. The author emphasizes that while the current system possesses the inherent capacity to promote responsible investment, certain reforms are necessary to overcome its limitations. By fully leveraging this potential, we can develop practices rooted in enhanced due diligence and responsible business conduct within the framework of ISDS.

Introduction:
The investor-state dispute settlement (ISDS) mechanism has gained significant prominence in recent years as a means for foreign investors to seek compensation for losses incurred in host countries. While ISDS has been criticized for its perceived lack of transparency and accountability, there is growing recognition of the need to address these concerns and ensure that foreign investors are held responsible for their actions. This book explores the potential of the current ISDS mechanism to materialize the responsibility of foreign investors through states' counterclaims and defenses at the jurisdictional, merits, and quantum phases.

The Jurisdictional Phase:
The jurisdictional phase of an ISDS case involves determining whether the dispute falls within the scope of the ISDS treaty or agreement between the investor and the host country. This phase is critical as it determines the forum in which the dispute will be heard and the applicable legal standards that will govern the proceedings. In recent years, there have been efforts to expand the scope of ISDS to include disputes related to human rights and environmental protection, which have been criticized by some as undermining the principles of international law and sovereignty.

The Merits Phase:
The merits phase of an ISDS case involves assessing the factual and legal basis of the claims and defenses raised by both parties. This phase is often complex and requires the parties to present extensive evidence and arguments to support their positions. In recent years, there has been a growing trend towards using alternative dispute resolution (ADR) methods, such as mediation and arbitration, to resolve ISDS disputes. These methods are seen as more cost-effective and efficient than traditional litigation and can provide a quicker resolution to the dispute.

The Quantum Phase:
The quantum phase of an ISDS case involves determining the amount of compensation that the investor is entitled to receive. This phase is often highly contentious and can involve complex calculations and legal arguments. In recent years, there have been efforts to limit the amount of compensation that investors can receive, particularly in cases where the investment was made in high-risk industries or where the host country has implemented policies to promote economic development.

Corporate Responsibility:
Corporate responsibility is a key issue in the context of ISDS. The book explores the recent developments in international and domestic laws on corporate responsibility, including the due diligence obligations of parent companies and the legal effects of corporations' voluntary commitments. The author argues that the current ISDS system does have the inherent potential to advance responsible investment, even though reforms are needed to overcome its limitations.

Victims' Perspectives:
The book also reflects the interests and perspectives of the victims who suffered loss and injury due to investors' conduct. The author argues that the current ISDS system does not adequately address the needs of victims and that more needs to be done to ensure that they receive fair and adequate compensation.

Conclusion:
In conclusion, this book provides a comprehensive analysis of the potential of the current ISDS mechanism to hold foreign investors accountable through states' counterclaims and defenses. While there are challenges and limitations to the system, there is also a growing recognition of the need to reform and enhance it to promote responsible investment and ensure that victims receive fair and adequate compensation. By fully leveraging this potential, we can develop practices based on greater due diligence and responsible business conduct within the framework of ISDS.

Weight: 644g
Dimension: 159 x 237 x 25 (mm)
ISBN-13: 9781316513972