2019 aiib Law Lecture: The Rise of Sustainable Development in International Investment Law

Abstract

In recent decades, sustainable development gained currency as a principle of international law remarkably quickly. It is an integrated concept, having economic, environmental, social and governance dimensions. Sustainable development is by now well anchored in various sources of international law, especially treaty law and soft law instruments, and ranging from international environmental law and human rights law to international economic law and investment law. As to the latter, (inter-)regional economic treaties and bilateral investment treaties increasingly incorporate sustainable development. This also gave rise to the concept of responsible investment, which is an approach to conducting business and managing assets that includes environmental, social and governance factors as well as taking public values into account in investment strategy. The UN General Principles of Business and Human Rights (Ruggie Principles) and the Sustainable Development Goals of the World Development Agenda 2030 are closely related to the evolution of the principles for responsible investment. Obviously, many obstacles to their implementation do exist. These include the lack of enforcement mechanisms, controversial investment practices and widespread patterns of unsustainable production and consumption. This chapter concludes by examining what the role of international investment law, both as a value system and a concrete regulatory framework, can be for achieving sustainable development and responsible investment.