Litigation has the potential to help drive the transition to a net zero economy by holding corporations and financial entities to their net zero transition plans, and to re-allocate capital where liability risks are priced into financial decision-making. Yet the risks, opportunities and impacts of climate litigation are not widely understood by financial market participants, regulators and academics alike. We will explore the role of law and litigation in holding companies and financial institutions to account for a failure to prepare, disclose or implement net zero transition plans. What role can and should investors and financial institutions play to support litigation to align corporate and financial decision-making with climate goals? How can litigation risk be factored into financial decision-making? What are the implications for efforts by financial institutions, investors, credit rating agencies and prudential regulators looking to use this analysis in financial decision-making and capital regulation?
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