["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nThis study examines whether managerial climate awareness contributes to symbolic or substantive sustainability of Chinese publicly listed firms. We find that only when managers' climate awareness is high enough will they significantly drive firms toward substantive sustainability. Otherwise, they are prone to prioritize symbolic actions. We also find that the positive effect of managerial climate awareness on substantive progress is strengthened by managerial ability and weakened by the executive pay gap. Notably, as management must also take into account firms' short‐term benefits and their self‐interests, having managerial climate awareness does not guarantee that climate change concerns are given priority, particularly in the absence of external pressure.\n"]