Walking the Walk or Just Talking the Talk? Corporate Climate Strategies Under Extreme Weather

ABSTRACT In the wake of extreme weather shocks, do firms “walk the walk” or merely “talk the talk” in their climate strategies? Drawing on legitimacy theory, this study empirically examines firms' climate strategy choices in response to extreme weather events using panel data from Chinese A‐share listed firms from 2012 to 2022. The results show that extreme weather events significantly increase firms' climate‐related discourse but do not lead to corresponding adaptation actions, suggesting a tendency toward symbolic strategies—“talking the talk” without “walking the walk.” These strategies are primarily motivated by institutional pressures and securing credit resources, as firms seek to gain legitimacy through low‐cost disclosures while alleviating financial constraints. Furthermore, firms with older top management teams and lower risk tolerance are more inclined to adopt symbolic strategies. Crucially, such symbolic climate approaches are found to hinder firms' long‐term development. Overall, this study advances understanding of corporate climate strategy choices under extreme weather shocks and offers managerial and policy implications for fostering substantive climate strategies in emerging economies.