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The impact of climate risk on sustainability performance of enterprises: Evidence from China

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  • Zhang, Liming
  • Yang, Cuiping
  • Luo, Kuankuan

Abstract

Using a sample of Chinese A-share listed companies from 2010 to 2021, this study empirically examines the impact of climate risk on corporate sustainability performance and the underlying mechanisms. The results show that climate risk enhance sustainability performance, mediated by managerial climate attention, long-term orientation, and green innovation. Moreover, the positive effect is more pronounced in state-owned firms, mature firms, and firms in eastern China. This study clarifies how climate risk influences corporate sustainability performance and provides important insights for corporate managers and policymakers in making climate risk management decisions.

Suggested Citation

  • Zhang, Liming & Yang, Cuiping & Luo, Kuankuan, 2025. "The impact of climate risk on sustainability performance of enterprises: Evidence from China," Finance Research Letters, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009043
    DOI: 10.1016/j.frl.2025.107645
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