Embracing Equality, Diversity, and Inclusion in International Arbitration: The LCIA’s New Guidelines

Introduction

The LCIA’s new EDI Guidelines represent a significant and important effort by an international arbitral institution to promote fairness, inclusivity, and diversity in international arbitration. Published on 5 December 2024, they are the result of a "collaborative, stakeholder-driven process", which has been in place since the LCIA announced in May 2024 a reinvigorated commitment to advancing EDI within the international arbitration community.

By outlining specific practices and responsibilities for various stakeholders, these guidelines aim to ensure that arbitration processes are equitable and representative of the diverse global community. This initiative aligns with and develops similar efforts by other institutions, such as the Hong Kong International Arbitration Centre (HKIAC), which has also incorporated diversity considerations into its rules for the appointment of arbitrators.

The EDI Guidelines

The primary intent of the LCIA’s EDI Guidelines, as articulated by the institution, is to address and mitigate the disparities and biases that can arise in arbitration. Reflecting the perspective that diversity enhances decision-making and legitimacy, the LCIA aims to create an environment where all participants, regardless of their background, can contribute effectively. The guidelines emphasize the importance of both cognitive and demographic diversity, highlighting how varied perspectives can lead to more balanced and fair outcomes.

The guidelines are structured to provide practical advice at different stages of the arbitration process. Section I focuses on general EDI practices, while Section II delineates the roles and responsibilities of key stakeholders, including parties, legal representatives, the institution, and arbitrators. By encouraging inclusive participation, accommodating diverse needs, and promoting continuous training, the LCIA seeks to embed EDI values deeply into the arbitration framework.

Key recommendations include:

1. Commencing an Arbitration: Emphasizing diversity from the outset, including in the selection of legal teams and arbitrators.
2. Identifying Candidates: Encouraging the consideration of diverse characteristics such as gender, race, nationality, and professional background when selecting arbitrators and experts.
3. Establishing Hearing Procedures: Promoting inclusive practices in procedural orders and ensuring accommodations for participants’ diverse needs.
4. Encouraging Inclusive Conduct: Advocating for respectful communication, gender-neutral language, and cultural sensitivity.
5. Roles of Stakeholders: Outlining specific actions that parties, legal representatives, the LCIA, arbitrators and other stakeholders can take to foster EDI.

It is made clear that these guidelines are intended to provide guidance rather than impose obligations on users. Stakeholders are invited to adopt them where feasible, and flexibly, recognising that they are not mandatory. It is also noted that the Guidelines are not static and will need to be updated from time to time.

Comment

The LCIA’s new EDI Guidelines are part of a broader movement within the arbitration community to enhance diversity and inclusion. This includes initiatives like the ERA Pledge, the Expert Pledge, and REAL, which all aim to promote greater representation and fairness in arbitration. Other institutions, such as the HKIAC and the ICC, have also incorporated diversity considerations into their frameworks, emphasizing the importance of diverse arbitrator appointments and inclusive practices. While the LCIA’s guidelines are not mandatory, they represent a significant step up from other institutions by providing more comprehensive and detailed guidance. It remains to be seen whether other institutions will adopt similar guidance, further advancing efforts to promote equality, diversity, and inclusion in international arbitration.