ISDS overview: how corporate courts threaten climate action and democracy
Trade Justice Movement | November 2025
ISDS overview: how corporate courts threaten climate action and democracy
Investor–State Dispute Settlement (ISDS) is a controversial mechanism built into many trade and investment agreements. It allows foreign investors to challenge government decisions that affect their profits, using private tribunals that sit outside national court systems. These tribunals are closed to citizens, domestic companies, and often even governments themselves.
This overview sets out:
- what ISDS is and how it operates
- why it undermines democracy and climate action
- how ISDS has already been used against the UK
- what the UK government should do in response
The resource contains visual summaries to help break down this complex system.
