Abstract
Traditionally, International Investment Agreements (IIAs) do not include obligations for investors concerning human rights, international labour standards and environmental protection standards owed to a host state. IIAs were designed to protect and promote foreign investors and their investments. However, with the inclusion of broader non-economic objectives, i.e. sustainable development objectives, in a new generation of IIAs, the content of investment treaties in terms of the rights and obligations of states and investors has been changing. There has been a shift towards recognizing the responsibility and accountability of investors, which is observable in a number of recent IIAs and in several decisions by investment tribunals. This article analyses the legal implications of the Corporate Social Responsibility (CSR) provisions found in a number of IIAs in terms of investor responsibility and accountability. Furthermore, the article discusses the obligations of investors under human rights treaties and the role of the investor’s conduct in deciding on substantive investment protection guarantees, such as the fair and equitable treatment (FET) of investors.
Highlights
Companies (‘foreign investors’) play a key role in bringing foreign direct investment (FDI) to states by investing in various economic sectors of the capital-importing state.[1]
As will be further elaborated upon in this article, until recently International Investment Agreements (IIAs) provided for obligations for host states towards investors, but not vice versa[29] in the last ten years, efforts towards reforming international investment law so as to ensure a more adequate balance between investment protection, on the one hand, and policy space for the state to regulate in the public interest, on the other, has taken place
The goal of this article was to investigate whether the obligations that are pertinent to human rights, the environment and labour standards can be imposed on investors under international investment law
Summary
Companies (‘foreign investors’) play a key role in bringing foreign direct investment (FDI) to states by investing in various economic sectors of the capital-importing state (the ‘host state’).[1]. As will be further elaborated upon in this article, until recently IIAs provided for obligations for host states towards investors, but not vice versa[29] in the last ten years, efforts towards reforming international investment law so as to ensure a more adequate balance between investment protection, on the one hand, and policy space for the state to regulate in the public interest, on the other, has taken place.
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