Firm maturity and corporate biodiversity risk

We examine how organizational maturity shapes firms’ strategic responses to biodiversity challenges. We find that older firms exhibit significantly lower biodiversity risk, consistent with the view that organizational maturity facilitates capability development rather than constraining adaptation through inertia. We show that mature firms are systematically less exposed to biodiversity-related challenges. This effect is particularly pronounced for profitable firms with substantial capital investments, suggesting that accumulated resources enable mature firms to more effectively develop and deploy capabilities for managing biodiversity-related pressures. Our findings advance corporate life cycle theory by revealing how organizational maturity shapes environmental risk management and highlight how experience, resource accumulation, and stakeholder integration shape firms’ strategic adaptation to emerging ecological constraints. Our study also validates the effectiveness of machine learning-based textual analysis in measuring complex corporate risks.