Adaptation and innovation: How does climate vulnerability shapes corporate green innovation in BRICS

Abstract

In the face of escalating environmental challenges, gaining insights into their influence on corporate strategies has become crucial because it paves the way for proactive and adaptive measures. In view of this, the primary objective of study is to explore the relationship between climate vulnerability (CVN) and corporate green innovation (GIN). The study leverages a comprehensive dataset spanning 13 years (2010−2022) across enterprises within BRICS nations. The regression was conducted by employing system GMM model and robustness of analysis was checked by considering the quantile regression technique. The findings reveal a significant negative relationship between CVN and GIN, signifying that heightened vulnerability to climate hazards impedes corporations' capacity for green innovation. The adverse impact of CVN on corporate green innovation (GIN) persisted consistently across various facets. The study emphasizes the importance of strategic measures to counteract the adverse effects of climate vulnerability on green innovation. Corporate managers need to prioritize climate resilience strategies, integrating sustainable innovation into their business models to navigate environmental challenges and ensure long-term viability. This study makes a valuable contribution to the existing literature by investigating the influence of climate vulnerability on corporate green innovation, presenting a unique research focus that fills an apparent gap in the current body of knowledge.