Enforcing esg commitments through commercial arbitration: International experience and implications for Vietnamese businesses
Published: June 8, 2026
Abstract
This study examines the evolving role of Environmental, Social, and Governance (ESG) principles, with particular emphasis on the “contractualization” of ESG commitments as legally binding obligations within commercial contracts. It further evaluates commercial arbitration as an effective dispute resolution mechanism, highlighting its flexibility, technical expertise, and capacity for cross-border enforcement. Drawing on international experience and the legal context in Vietnam, the analysis identifies emerging trends in ESG-related disputes and the growing significance of private enforcement mechanisms in ensuring compliance. Overall, the study provides a comprehensive perspective on the legal and institutional dynamics shaping ESG governance in contemporary commercial practice.
Keywords
ESG standardscommercial arbitrationinternational case law
References
1.
Legal Analyst (n.d.). Business and Human Rights Division, High Court of England and Wales.
2.
OECD (2018). OECD Due Diligence Guidance for Responsible Business Conduct. Paris: OECD Publishing.
3.
OECD (2023). OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.
4.
Permanent Court of Arbitration (n.d.). Optional Rules for Arbitration of Disputes Relating to Natural Resources and/or the Environment.
5.
Permanent Court of Arbitration (2018). Cases No. 2016-36 and 2016-37: International Brands and Unions Reach Settlements in Bangladesh Accord Arbitrations.
6.
Permanent Court of Arbitration (n.d.). The Bangladesh Accord on Fire and Building Safety, Final Award in PCA Case No. 2016-36.
7.
Recognition and Enforcement of Foreign Arbitral Awards Guide (n.d.) newyorkconvention.org.
8.
UNCITRAL (2014). Rules on Transparency in Treaty-based Investor-State Arbitration. United Nations.
