By: International Financial Law Review (IFLR), 2024

After ratification of the first sustainable investment facilitation agreement, between the EU and Angola, Carla Gonçalves Borges, Mariana França Gouveia, and Assunção Cristas of Vieira de Almeida analyse ESG
considerations in African states’ investment treaties

IFLR 2024

The report “ESG and Investment Treaties in Africa: A New Substantive Standard?” examines the integration of Environmental, Social, and Governance (ESG) principles into African investment treaties, particularly in the context of sustainable development. It highlights the historical evolution of ESG standards since the 1992 Earth Summit and their growing influence on international investments, especially in developing countries like those in Africa. The report discusses the significance of the EU-Angola Sustainable Investment Facilitation Agreement (SIFA) as a model for incorporating ESG considerations into investment frameworks. It also explores the potential for ESG clauses in bilateral investment treaties (BITs) to serve as a new substantive standard, influencing the rights and obligations of investors and host states, and reinforcing the host states’ right to regulate in alignment with sustainable and ethical practices.