Does exposure to biodiversity risk drive firms’ digital transformation?

Libo Yin, Xiaoye Zhu and Jingtian Li

Finance Research Letters, 2025, vol. 82, issue C

Abstract: This paper investigates whether biodiversity risk drives firms’ digital transformation. We find that such risk positively influences digital efforts, especially among firms facing higher natural disaster exposure, policy uncertainty, and risk perception. The effect operates through disrupted supply chains, sustainability constraints, and incentives for green innovation, positioning digital transformation as a key strategic response to biodiversity challenges.

Keywords: Biodiversity risk; Firm digital transformation; Supply chain disruption risk; Sustainable Development; Green Innovation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325007482

DOI: 10.1016/j.frl.2025.107489

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