ABSTRACT Supply chain finance has become an important means of financing for firms. Based on the resource‐based view, signal theory, and prospect theory, this study explores the impact of supply chain finance on the environmental innovation of firms and examines the mediating role of risk propensity and the moderating effect of climate policy uncertainty. We select data from 1393 listed Chinese manufacturing companies from 2015 to 2021 as the research sample and analyze the data with multiple regression. The results show that supply chain finance has a positive promoting effect on firms' environmental innovation. Risk propensity plays a partial mediating role in the impact of supply chain finance on environmental innovation, and the uncertainty of climate policy positively moderates the relationship between supply chain finance and firms' environmental innovation. The conclusions drawn from this study provide guidance for the optimization of supply chain finance and the enhancement of firms' environmental innovation.
Liao et al. (2026) studied this question.