From Risk Attention to Green Action: How Climate Risk Attention Affects Corporate Environmental Performance

As climate volatility intensifies, understanding the drivers of corporate environmental governance beyond mere regulatory compliance becomes critical. Prior studies have extensively verified the impact of physical climate shocks on firm behavior. However, the role of climate risk attention (CRA), a market-driven perception of transition risks, remains underexplored. This study uses a panel dataset of Chinese A-share listed firms from 2008 to 2023 and investigates whether and how elevated CRA affects corporate environmental performance. Using a static panel regression model that incorporates two-way fixed effects, we find a robust positive relationship between CRA and environmental performance. This effect is more pronounced for non-foreign-invested, digitally-oriented, and non-traditional enterprises. Mechanism analysis identifies underlying channels: green innovation and legitimacy-building information disclosure. Moderation analysis reveals boundary conditions. The positive impact of CRA is weakened by high customer concentration but strengthened by environmental management system. These findings offer practical guidance for managers and policymakers who aim to better align climate risk management with sustainability objectives.