Webinar: Investor-State Dispute Settlement (ISDS) & climate 'policy chill'

On October 16th Fair Finance International, ACCR and the Centre for Research on Multinational Corporations (SOMO), hosted a webinar for institutional investors to learn more about ISDS.

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.

During the webinar, 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?

• 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

• Adam Gillett is a Senior Investment Manager in the Sustainable Ownership team at Railpen, one of the UK’s largest pension funds, managing around £34 billion in AUM on behalf of 350,000 members. Adam leads Railpen’s climate change programme, and is also a member of the IIGCC climate lobbying working group.
• Dr Kyla Tienhaara is an interdisciplinary social scientist who studies the intersection between environmental governance and the global economy. She is Canada Research Chair in Economy and Environment, and an Associate Professor at Queen’s University.
• Simon Batifort is a partner at Curtis Mallet-Prevost Colt & Mosle LLP. Curtis is the leading firm in representing sovereign states in ISDS proceedings. Simon practices international arbitration and public international law, and lectures on ISDS and climate change.

Please find the video of the webinar here.

If you would like to receive additional information, or the powerpoint presentations from the event, please contact info@fairfinance.org