From disclosure to competitiveness: the role of resilience in European firms

Purpose This study aims to investigate the link between climate risk disclosure, corporate resilience and competitiveness among European firms. Design/methodology/approach Drawing on stakeholder theory, the resource-based view, institutional theory and the dynamic capabilities perspective, it examines how transparent disclosure of climate-related risks strengthens organizational resilience and enhances competitive performance. Using a panel data set of European industrial firms from 2010 to 2024, the analysis uses fixed-effects and system GMM estimations to address potential endogeneity and unobserved heterogeneity. Findings The findings indicate that climate risk disclosure positively impacts competitiveness (measured through financial performance, innovation intensity and market share), with resilience being a partial mediator of this effect. Moreover, the influence is stronger in sectors that are more vulnerable to climate risks and in firms with robust governance structures, indicating the contextual nature of competitiveness outcomes. Originality/value This study contributes to the growing literature on sustainability and competitiveness by demonstrating that climate risk transparency functions as a strategic capability, transforming environmental accountability into long-term competitive advantage. It offers practical insights for policymakers and managers aiming to integrate resilience-building and climate risk management into strategic decision-making processes.