Does climate risk perception drive the realization of corporate environmental responsibility?

This paper explores the impacts and mechanisms of climate risk perception on the realization of environmental responsibility from a micro-firm perspective. We selected the data of Chinese A-share listed companies from 2012 to 2022 as a sample, and used text mining techniques and machine learning algorithms to construct corporate-level climate risk perception indicators, and then examined the impact of climate risk perception on corporate environmental responsibility. The empirical results show that (i) Climate risk perception can effectively improve corporate environmental performance (E score). (ii) Climate risk perception can motivate corporations to achieve environmental responsibility through three channels: enhancing diversification, promoting green technology innovation, and increasing environmental investments. (iii) Expansion analyses show that financial support, economic policy synergies, and institutional synergies can enhance the facilitating effect of climate risk perception on corporate environmental responsibility. This study provides empirical evidence for corporations to address climate risks and achieve sustainable development.