Using large language models to measure a firm's development and deployment of climate solution products and services, we find that firms with more climate solutions exhibit lower stock returns and higher market valuation multiples. We also document that stock prices of high-climate solution firms react more positively (negatively) to climate-related events that signal increased (decreased) future demand for climate solutions. Furthermore, high-climate solution firms exhibit higher future profitability during periods of high environmental regulatory uncertainty, unexpected increases in climate change concerns, and when they have a larger share of their sales in states with climate plans and stronger public support for addressing climate change. Finally, we find that the lower stock returns among high-climate solution firms are more pronounced for those also having a low carbon footprint. Overall, our results indicate that high-climate solution firms, whose business benefits as climate transition risks materialize, hedge investors against such risks.