Do early-life extreme weather experiences of CEOs affect corporate climate strategies?

Abstract While the drastic physical impacts of climate change and related extreme weather events (EWEs) are increasingly apparent, little is known about long-term behavioral consequences of climate change-related experiences. In this study, we investigate whether extreme weather events experienced by CEOs during their early lives induce a systematic shift towards more climate-friendly professional decisions. Our sample covers decisions of 447 U.S. born Chief Executive Officers (CEOs) between 1991 and 2018. The results of our study reveal a significant positive effect of early-life EWE experiences on sustainability-related and climate-related corporate policies during a CEO's tenure. These findings are robust to different proxies and model specifications. Our results provide evidence that extreme weather experiences have long-lasting effects on climate-related attitudes and thereby moderate the willingness to act with respect to climate change.