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How do firms respond to climate risks? Shifting patterns in innovation towards environmental technologies is a promising avenue to secure future business opportunities. We explore empirically whether reported climate risks affect innovation behavior of EUROSTOXX-600 firms. We combine two unique datasets: first, firm data on patents that takes account of the dynamic ownership structures and the associated innovation portfolio, and second, data on reported climate risks in annual reports. Preliminary results based on an unbalanced sample of 111 firms from 2011 to 2019 show that firms reporting of more climate risks overall is associated with more green innovation, but not more total innovation. This association is most robust for overall, policy and acute risks, less so for chronic, market, and reputation risks.


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