This study uses the Paris Agreement as a proxy for global environmental awareness to examine its impact on the climate risk in the mergers and acquisitions (M&As) of US suppliers facing pressure from customers with high carbon emissions in a difference-in-difference analysis. The degree of climate risk in each M&A deal is measured by text analyzing the press releases of the acquirer's bidding announcement. This study finds that the M&As of suppliers with high-emission customers experience a relatively higher increase in climate risk but not innovation compared to the deals of suppliers with low-emission customers after the Paris Agreement. Additionally, M&As with higher degrees of climate risk are associated with worse post-merger environment performance, sales growth, operating performance, and valuation for acquirers with high-emission customers compared to firms in the control group. By engaging in M&As with lower climate risk, suppliers with high carbon emission customers can demonstrate their efforts to reduce climate risk to customers and thus enhance sales growth compared to counterparties.