We construct a market-based, forward-looking measure--the price valuation gap between high- and low-emission firms--to capture the multifaceted effects of climate change on publicly-listed firms. We validate the measure by showing that high-emission firms have lower price valuation ratios than low-emission firms in the same country, especially in recent years. This gap is linked to improved climate policies and increased awareness following local natural disasters. Under price pressure, high-emission companies reduce carbon emissions, enhance green innovation, and downsize operations. Private high-emission firms do not exhibit similar trends. Our findings clarify the ongoing debate regarding the productivity of sustainable investing.