This article investigates the impact of firm-level climate change risk (FCCR) on firm value (FV) and the moderating effect of ESG investments. The study uses a dataset of 1771 US-listed firms from 2006 to 2021, employing various econometric models to analyze the relationships between FCCR, FV, and ESG investments. The main findings are as follows: 1. **FCCR and FV**: FCCR has a negative and significant effect on FV, indicating that firms exposed to climate change risks experience a decrease in their market value. 2. **ESG Investments and FV**: ESG investments positively and significantly influence FV, suggesting that investing in environmental, social, and governance factors can enhance firm value. 3. **Moderating Role of ESG Investments**: ESG investments moderate the relationship between FCCR and FV, meaning that ESG investments can help mitigate the negative impact of FCCR on FV. The study also confirms the robustness of these findings through multiple robustness checks and sensitivity analyses. The results provide a fresh perspective on risk management and offer significant policy implications for investors, managers, and regulators in the US. The article suggests that ESG investing is an important strategic catalyst for US firms, helping them to manage climate change risks and enhance their long-term performance and value.This article investigates the impact of firm-level climate change risk (FCCR) on firm value (FV) and the moderating effect of ESG investments. The study uses a dataset of 1771 US-listed firms from 2006 to 2021, employing various econometric models to analyze the relationships between FCCR, FV, and ESG investments. The main findings are as follows: 1. **FCCR and FV**: FCCR has a negative and significant effect on FV, indicating that firms exposed to climate change risks experience a decrease in their market value. 2. **ESG Investments and FV**: ESG investments positively and significantly influence FV, suggesting that investing in environmental, social, and governance factors can enhance firm value. 3. **Moderating Role of ESG Investments**: ESG investments moderate the relationship between FCCR and FV, meaning that ESG investments can help mitigate the negative impact of FCCR on FV. The study also confirms the robustness of these findings through multiple robustness checks and sensitivity analyses. The results provide a fresh perspective on risk management and offer significant policy implications for investors, managers, and regulators in the US. The article suggests that ESG investing is an important strategic catalyst for US firms, helping them to manage climate change risks and enhance their long-term performance and value.