When nature disrupts: biodiversity risk and corporate supply chain resilience

Although climate change risks have been extensively examined, biodiversity risk has emerged as a pressing yet understudied ecological threat to supply chain resilience (SCR). Motivated by the increasing disruptions from biodiversity degradation, this study explores how biodiversity risk shapes SCR in Chinese listed firms. Using fixed effects and instrumental variable approaches, we find that biodiversity risk significantly undermines SCR. The negative effects are especially pronounced in firms with limited diversification, fewer female directors, a manufacturing focus, and non-state ownership. Mechanism tests reveal that maturity mismatch and agency costs channel the negative impact. These findings highlight biodiversity risk as a distinct source of supply chain vulnerability and offer insights into enhancing SCR.