How do climate risk disclosure peer effects propel corporate green innovation?

Enhanced risk management and green innovation are critical for enterprises to navigate the complex climate environment. Using panel data from Chinese listed firms (2009–2022), this study examines the relationship between peer effects in climate risk disclosure (CRD) and corporate green innovation (CGI) by applying machine learning techniques and employing a two-way fixed effects model. Our results reveal that corporate CRD exhibits both industry and regional peer effects that substantially promote CGI. From financing and governance perspectives, CRD peer effects stimulate CGI by alleviating financing constraints and enhancing executive environmental awareness, and market uncertainty diminishes the positive influence of CRD peer effects on CGI, and investor attention amplifies it. Peer effects from transit risk disclosure are more significant in driving CGI than those related to physical risk. Furthermore, CRD peer effects are more conducive to collaborative green innovation and have a stronger driving effect on CGI for high-carbon firms, capital-intensive industries, and transportation hub cities. This study examines the mechanisms through which corporate CRD influences CGI from a social interaction perspective, providing valuable insights for enhancing risk management and advancing sustainable development in emerging economies.