 Environmental innovation and climate risk awareness: The moderating role of SDG13Md Akhtaruzzaman, Sabri Boubaker, Pandula Gamage and Victoria Obeng Research in International Business and Finance, 2025, vol. 75, issue C Abstract: Our study examines the relationship between a firm’s climate risk awareness and environmental innovation, aiming to determine how climate risk influences its competitive advantage. We further highlight the importance of SDG13: Climate Action in this relationship. Based on a sample of 22,820 firm-year observations from 45 counties during 2013–2022, the results show a positive relationship between a firm’s climate risk awareness and environmental innovation. Climate risk awareness accounts for a firm’s engagement in product- and process-based environmental innovations. However, SDG13 is only relevant in shaping a firm’s product environmental innovation in the presence of climate risk awareness. These results confirm the disciplinary effect of climate risk on firm innovation. Our findings provide regulators and other stakeholders with a better understanding of creating an enabling environment for a beneficial climate risk management process. Keywords: Climate risk awareness; Environmental innovation; SDG13; Product environmental innovation; Process environmental innovation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531924005063 DOI: 10.1016/j.ribaf.2024.102713 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.