Chinese Pharma Firms Boost Resilience as Climate Worries Rise

Researchers looked at Chinese drug makers listed on the A‑share market from 2003 to 2024. They built a climate risk perception score by reading the words in each company’s yearly report. The score shows how much managers think climate change could hurt their business.

The analysis found that when this perception goes up, the firms’ supply chains become more resilient. The result holds even when different measures or model settings are used.

Three main drivers explain the link. First, companies invest more in green innovation. Second, they build tighter bonds with key suppliers. Third, they spread their sales across more customers so no single buyer dominates.

The effect is strongest for state‑owned enterprises, for smaller firms, and for those whose leaders are more risk‑averse. The study adds new theory and evidence for how relationship‑driven supply chains can withstand climate shocks.