Beyond Biodiversity Exposure: How Firms Create Value Through SDG 15 Engagement

Biodiversity loss is no longer a distant ecological concern but an immediate economic reality and it is now a critical dimension of firm‐level risk. At the same time, global sustainability frameworks such as SDG 15: Life on Land call for urgent corporate action to protect and restore terrestrial ecosystems. This study asks a central question: Do firms that are more exposed to biodiversity risks meaningfully engage with SDG 15 and under what conditions does this exposure translate into real economic consequences? Using S&P 1500 firms, the study finds that biodiversity exposure alone does not consistently increase firms' contributions to SDG 15. However, firms that adopt proactive sustainability strategies, such as eco‐sustainable sourcing and adaptive supply networks, are more likely to convert biodiversity exposure into meaningful engagement with SDG 15. Similarly, external governance mechanisms, including CSR auditing and higher audit quality, strengthen the positive association between biodiversity exposure and sustainability outcomes by enhancing transparency and credibility. Overall, the findings suggest that biodiversity exposure can drive sustainability transformation when supported by appropriate strategic and governance structures, thereby generating both environmental and economic value.