With the intensification of climate change, climate risk has emerged as a disruptive economic variable, posing a significant threat to the stable operation of China's economy. This study systematically examines the impact of climate risk on corporate investment volatility, explores its underlying mechanisms, and discusses potential adaptive strategies. The findings reveal that climate risk exacerbates corporate investment volatility, with private enterprises and high-growth firms being particularly vulnerable to its effects. Mechanism testing indicates that climate risk increases the unpredictability of future corporate earnings, reducing investment sensitivity to opportunities, and heightens cash flow uncertainty, making it more difficult for firms to secure external financing, thereby destabilizing investment activities. Further analysis shows that climate-adaptive urban development can mitigate the adverse impacts of climate risk on local firms; insurance can act as an economic shock absorber and a stabilizing force, helping to alleviate and offset the effects of climate risk; and firms can enhance their resilience to climate risks by strengthening organizational resilience, improving financial flexibility, and accelerating digital transformation. From the perspective of corporate investment volatility, this study reveals the micro-level transmission mechanisms through which climate risk threatens economic stability. The findings provide valuable theoretical insights and policy recommendations for improving corporate climate adaptability, establishing effective mechanisms to mitigate climate-related financial risks, and ensuring the stable operation of the economy.