The Netherlands Model BIT (2019): A ‘Trailblazer’ in CSR Reform?

Ten years ago, the European Commission proposed to build a new ‘model’ of international investment protection that would not only protect foreign investment but also non-economic values, such as environmental stewardship, public health, and human rights. In the context of the ongoing EU reform of international investment law, the ‘new-generation’ Netherlands Model BIT (2019) has been praised for championing foreign investors’ Corporate Social Responsibility (‘CSR’). This article investigates whether this innovative model may be regarded as a ‘trailblazer’ in CSR reform. It argues that, despite its cutting-edge provisions, gaps remain in CSR protection. Before turning to this analysis, the first section examines – as a necessary preliminary step – the broader issue of the interplay between CSR and international investment arbitration. The second section provides an in-depth analysis of the legal treatment of CSR under the Netherlands Model BIT (2019) and compares it with other reform initiatives.