Climate Change Exposure and Corporate Commitment to SDG 15 (Life on Land): Evidence From S&P 1500 Firms

ABSTRACT The prominent issue at the firm level in US firms is increasing exposure to climate change risk. As climate‐related pressures intensify, firms are expected to play a greater role in supporting global sustainability goals, particularly those aimed at preserving terrestrial ecosystems. This raises an important question: how does climate exposure influence corporate engagement with Sustainable Development Goal 15 (Life on Land)? This study examines whether firms facing higher climate change exposure are more likely to undertake SDG 15. Using 5255 firm‐year observations from S&P 1500 firm‐level data for 2019–2023 and logistic regression analysis, this study finds that climate exposure is positively associated with the likelihood of corporate engagement in SDG 15 activities. Additional analyses indicate that this relationship is concentrated among firms that actively pursue environmental initiatives, face stronger growth pressure and exhibit lower organisational complexity. Furthermore, this study assesses the economic implications of SDG 15 engagement and finds that firms that commit to SDG 15 experience lower financial distress and improved future performance. The findings highlight the role of climate‐related risks in motivating corporate sustainability strategies and suggest that engagement with SDG 15 can generate meaningful economic and sustainability benefits. Overall, this study contributes to the emerging literature on climate risk and corporate sustainability by demonstrating that climate exposure can act as a strategic driver of biodiversity‐related corporate engagement and long‐term economic resilience.