This study examines the relationship between climate change and firm performance in the context of European publicly listed companies. We conduct a multivariate regression analysis using Corporate Environmental Performance and Corporate Financial Performance as independent and dependent variables, respectively. A financial statement analysis of European publicly traded firms with high environmental performance shows that they register high corporate financial performance. Environmental performance positively impacts financial performance (β = .013, p-value < .01). Return on equity (ROE) is positively related to firm size and CE1 (carbon emissions) intensity but negatively linked to CE2, CE1 & 2, and capital intensities. However, return on investment (ROI) is positively correlated with all the control variables, including capital intensity, firm size, and growth. The results confirm that the firm-wide adoption of environmental practices reduces environmental risks, and thereby lowers production costs and increases profits. These findings can guide policymakers and organizations pursuing climate change mitigation and sustainable business solutions.