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‘Green Pill’ Prescribed By Experts for Failing Net-Zero Pledges

Sept. 26, 2022, 8:43 AM

A group of law professors have proposed a financial mechanism they’re calling a “green pill” that would help companies reach ambitious net-zero targets and offer investors greater certainty that corporate sustainability goals will be met.

Akin to so-called poison pills that companies design to ward off hostile takeovers, green pills are financial contracts that would require a firm failing on its net-zero target to pay a large chunk of money to a third party that’s doing a lot more to cut carbon emissions.

“Lots of firms are making good-sounding statements about what they’re hoping to do, but if you look ...