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Climate risks and corporate supply chain configuration:Evidence from China

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  • Su, Zhifang
  • Deng, Changzhe
  • Feng, Yufang
  • Bai, Yulu
  • Xu, Zhikai

Abstract

This paper delves into the ramifications of climate risks on corporate supply chain configurations. Drawing on a dataset comprising China's A-share listed companies spanning the period from 2012 to 2022. The findings indicate that climate risks exert a notable influence in decreasing the concentration of upstream suppliers, downstream customers, and the entire supply chain, thereby fostering diversification within supply chain configurations. This promotion is primarily achieved through spurring corporate green innovation and improving ESG performance. Further research underscores that the diversification impact of climate risks on supply chain configurations is particularly accentuated in cities characterized by elevated climate change vulnerability and heightened public awareness of climate risks. This effect is also notably observed in downstream supply chains, industries with substantial capital intensity, firms facing lesser financing constraints, those with higher agency costs, and entities possessing greater levels of specialized investments.

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  • Su, Zhifang & Deng, Changzhe & Feng, Yufang & Bai, Yulu & Xu, Zhikai, 2025. "Climate risks and corporate supply chain configuration:Evidence from China," Research in International Business and Finance, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925001084
    DOI: 10.1016/j.ribaf.2025.102852
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    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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