ABSTRACT Climate change has evolved from an environmental concern into a strategic challenge, exposing firms to financial, operational, and reputational risks that threaten long‐term survival. Resilience to these risks, however, remains uneven, particularly in emerging economies where institutional diversity and regulatory gaps complicate adaptation. Although ESG strategies are increasingly promoted as tools for resilience, evidence of their effectiveness in heterogeneous contexts such as the BRICS economies remains limited. This study addresses this gap by examining how ESG strategies enhance corporate climate risk resilience (CRR) in BRICS, with a focus on the moderating role of sustainable governance and the mediating role of digital transformation. The analysis uses panel data from 641 listed manufacturing firms in BRICS economies between 2010 and 2023 and applies dynamic panel estimations, non‐linear modeling, and multi‐level analysis with robustness checks. The results show that ESG strategies significantly strengthen resilience, with environmental and social practices providing strong early gains but diminishing returns, while governance reforms generate slower yet compounding effects over time. Cross‐country analysis finds environmental strategies most influential in China, social initiatives strongest in South Africa, and governance reforms most effective in Russia, while industry‐level evidence highlights resilience gains in energy‐intensive and technology‐driven sectors. The study contributes by unpacking non‐linear ESG–resilience dynamics, clarifying the enabling roles of governance and digitalization, and extending ESG scholarship to underrepresented BRICS contexts. Policy recommendations emphasize tailoring ESG strategies to institutional and sectoral conditions, strengthening regulatory frameworks, and expanding digital and green finance infrastructure to accelerate sustainable and resilient business practices.
Zhou et al. (2026) studied this question.