Climate change risk management and firms’ adaptive responses: evidence from the livestock industry

Building on the existing literature on corporate risks management and emerging risks, this study investigates livestock firms’ identification, assessment, and management of climate change risks. Specifically, we surveyed a sample of 40 Italian firms operating in the upstream stages of the livestock supply chain, to explore their perception of and responses to climate-related threats. Our findings reveal that, while being well aware of potential climatic challenges, the sampled firms have not adopted a systematic approach to climate change risk assessment and management. Furthermore, results suggest that Italian livestock firms tend to enact a wait and see strategy, along with adaptation measures when faced with unexpected disruptive events due to changes in the natural environment. On the whole, our study contributes to the ongoing debate on climate change risk by shedding light on firms’ reactions to unpredictable uncertainties and by exploring the role of industry- and entity specific characteristics in shaping risk responses.