This study employs unique firm-level survey data from the GRINS research project to map climate strategies of companies and their associated governance factors. Drawing on a sample of 2,121 companies – primarily small and medium-sized enterprises (SMEs) – located in the Piedmont region, we categorized firms’ responses to climate risks into different clusters based on climate-related investments made and planned (“Wait-and-see”, “Planners”, “Foresighted”, and “Proactive”), and assessed their prevalence. Our findings indicate that most Piedmont companies adopt a “wait-and-see” approach to climate investments, while approximately 20% exhibit a “proactive” climate profile. More proactive climate strategies appear to be positively associated with corporate literacy on sustainability issues, active participation in training activities, the presence of a sustainability manager, and the preparation of a sustainability report. These findings provide valuable guidance for policymakers in supporting firms' commitment to aligning with EU climate objectives.

Keywords: climate change, climate risks, climate strategies, corporate sustainability, SMEs