Climate and ESG litigation

In her recent interview with The Arbitration Club, Dr. Atie Babaie discussed several important issues related to Climate and ESG litigation. The conversation focused on her professional experience, her current research, and the challenges that shape this developing field.

During her interview regarding climate and ESG litigation, Dr. Babaie mentioned that one of the most significant challenges is the absence of a clear and universally accepted definition of ESG and climate-related disputes. She explained that without a standardized definition, legal frameworks remain limited and inconsistent, making it difficult to develop effective approaches. She also highlighted the importance of addressing power imbalances between corporations and affected communities, and the difficulty of capturing long-term, non-economic environmental harm.

Regarding arbitration, Dr. Babaie noted that while it is a neutral and flexible dispute-resolution mechanism, it is still not fully equipped to handle ESG and climate cases. Its private nature limits transparency and accessibility. However, she believes arbitration can evolve through measures such as greater transparency and the use of amicus curiae briefs, which would allow NGOs and affected communities to contribute valuable perspectives.

Dr. Babaie also underlined the important role of international arbitral institutions in shaping the future of ESG dispute resolution. By adapting procedural rules, integrating ESG principles, and promoting broader participation, these institutions can ensure that arbitration responds not only to private interests but also to public and environmental concerns.

At the end of the interview, she encouraged young lawyers to adopt a multidisciplinary approach, reminding them that ESG and climate challenges cannot be understood through legal analysis alone. She advised them to engage with fields such as economics, social sciences, sustainability, and international relations to develop a broader and more informed perspective.
To read the full interview, please visit this link.