Abstract
Globally, pollution is deteriorating the climate with air and water pollution, harboring more pathogens and parasites that affect the agriculture sector, food quality, and human life. The study aims to examine how pollution deteriorates the environment and focuses on renewable energy and the adoption of green innovation adoption as solutions to reduce the detrimental effects of traditional energy consumption practices with the help of spreading environmental awareness. VBN theory was applied to the framework that explores climate change via environmental awareness. In contrast, renewable energy adoption (REA) mediates the relationship between awareness and climate change, and green innovation strengthens the relationship between environmental awareness and renewable energy adoption. The data was collected from high-level managers of 368 Chinese SME firms, and PLS-SEM was applied to validate the data. This study explores how environmental awareness influences renewable energy adoption, green innovation adoption (GIA), and climate change perceptions in Chinese SMEs. This study is an essential contribution to the development of VBN theory at the organizational level by demonstrating how values and beliefs integrated in SME implementations lead to pro-environmental practices that sustain climate resilience.This study, by focusing on the theoretical perspective of VBN is instrumental for developing new insights regarding how organizational values and beliefs influence SMEs' sustainability strategy. The results also make policy recommendations and managerial actions that are based on environmental consciousness, renewable energy, and innovation to control climate risks.