International Contracts and Sustainability Clauses

This chapter analyses the emergence of sustainability clauses in international commercial contracts as a key instrument for integrating environmental, social, and governance (ESG) objectives into cross-border transactions. It examines how sustainability concerns have evolved from voluntary corporate commitments into contractual obligations increasingly shaped by regulatory frameworks, particularly within the European Union. The contribution explores the interaction between ESG requirements, due diligence obligations, supply-chain governance, and contractual enforcement mechanisms, highlighting the challenges of compliance and dispute resolution in international commerce. It argues that sustainability clauses are transforming the function of international contracts, positioning them not only as tools of private ordering but also as mechanisms for advancing broader societal and environmental goals.