Survey highlights bolder action required to ensure sustainable arbitration

The Campaign for Greener Arbitration’s survey aimed to investigate whether arbitral institutions adhered to protocols, called the Green Pledge, developed by the Campaign and signed by stakeholders, asking questions about case management, how institutes operate and how they promote events.

The results found that the overwhelming majority of the 51 institutions that responded believe that sustainability efforts are worthwhile and will benefit the environment, institutions should incorporate sustainability measures into case management procedures and more consideration can be made towards including a prospective arbitrator’s approach to adopting sustainability measures throughout an arbitration process.

Nicholas Turner, an expert in international commercial arbitration proceedings at Pinsent Masons, said: “The survey results are encouraging.”

“Institutions have and are playing a key role, alongside other stakeholders, in promoting more sustainable arbitration,” he said. 

“There is still some way to go, and bold action will be needed to make arbitration more sustainable.” 

Most the respondents were from Asia, with Europe the second most active in the survey, which reflects the location of major arbitration centres.

85% of respondents said their organisation was aware of the Campaign for Greener Arbitration’s Green Pledge, 75% said they were familiar with the Green Protocol for Arbitral Institutions and 62% said they’d implemented parts of the protocol.

46% of institutes have included requirements to adopt efficient use of technology within their rules and guidance.

Turner said: “Despite the rules and guidance, it remains unclear whether tribunals are using their powers to conduct arbitrations in a more sustainable way.”

“The majority of institutions do not consider appointing arbitrators who place emphasis on sustainable behaviours, and this may be due to a lack of clarity around how to assess whether arbitrators possess the relevant skills and expertise,” he said.

“There may also be a lack of training amongst arbitrators in this area to assist implementation of more sustainable measures.”

52% responded that their organisations did not endeavour to appoint arbitrators who place an emphasis on sustainable behaviours, while 26% said they make an effort to do so. One institute noted that sustainability is usually considered where an arbitrator must make long-haul flights.

The survey highlighted that the two leading challenges for institutions in promoting sustainable practices in case management procedures are resistance to change from traditional practices and a lack of awareness or interest from stakeholders. 

Arbitrators who responded said that a limited knowledge of sustainability and a focus on resolving disputes rather than applying sustainable policies was a challenge.

Despite these challenges, 93% of institutions said that sustainability measures should be incorporated into case management procedures.

The Campaign for Greener Arbitration was founded in 2019 and has seen 78 institutions sign up to the Green Pledge since.