Climate risk perception and pharmaceutical supply chain resilience in China.

Climate risk shocks to the global supply chain are becoming more severe, and the pharmaceutical industry is especially vulnerable, given the high stakes of patient safety, cold-chain constraints, geographic concentration of active pharmaceutical ingredients, and stringency of quality regulation. Using panel data on pharmaceutical manufacturers listed in the A-share from 2003 to 2024, we construct a climate risk perception indicator based on the textual analysis of annual reports and examine its impact on the supply chain resilience of firms and the mechanisms involved. Our findings show that the heightened climate risk perception significantly enhances supply chain resilience. This relationship is robust to alternative dependent and independent variables, alternative specifications of fixed effects, and different trimming ranges. Three mechanisms drive the effects: (i) promoting green innovation, (ii) deepening supplier relationships, and (iii) diversifying customer concentration. The heterogeneity analyses suggest that the effects are stronger for state-owned enterprises, smaller firms, and firms with higher managerial risk aversion. This study connects climate risk perception and supply chain resilience in a regulated pharma context, offering new theory and empirical evidence for resilience in relationship-driven supply chains.