This study investigates the impact of firm-level climate change risk (FCCR) on firm value (FV) and the moderating role of ESG investments in this relationship. Using a dataset of 1,771 U.S.-listed firms from 2006 to 2021, the study finds that FCCR has a negative and significant effect on FV. ESG investments positively and significantly influence FV, and ESG investments significantly moderate the FCCR-FV relationship. The findings are robust across different estimation methods, including generalized method of moments (GMM), fixed effects, and feasible generalized least squares (FGLS). The study also explores the relationship between ESG investments and firm value, finding that ESG investments enhance firm value through improved reputation, access to capital, innovation, and alignment with long-term sustainability goals. The results suggest that ESG investments can mitigate the negative impact of climate change risk on firm value, making them a strategic catalyst for U.S. firms. The study contributes to the literature by providing new evidence on the interaction between FCCR and FV in the U.S. context and by introducing a more integrated approach to ESG investments compared to traditional CSR. The findings have significant policy implications for investors, managers, and regulators in the U.S.This study investigates the impact of firm-level climate change risk (FCCR) on firm value (FV) and the moderating role of ESG investments in this relationship. Using a dataset of 1,771 U.S.-listed firms from 2006 to 2021, the study finds that FCCR has a negative and significant effect on FV. ESG investments positively and significantly influence FV, and ESG investments significantly moderate the FCCR-FV relationship. The findings are robust across different estimation methods, including generalized method of moments (GMM), fixed effects, and feasible generalized least squares (FGLS). The study also explores the relationship between ESG investments and firm value, finding that ESG investments enhance firm value through improved reputation, access to capital, innovation, and alignment with long-term sustainability goals. The results suggest that ESG investments can mitigate the negative impact of climate change risk on firm value, making them a strategic catalyst for U.S. firms. The study contributes to the literature by providing new evidence on the interaction between FCCR and FV in the U.S. context and by introducing a more integrated approach to ESG investments compared to traditional CSR. The findings have significant policy implications for investors, managers, and regulators in the U.S.