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Opportunistic behaviors are considered ethically and strategically troublesome since they disrupt otherwise mutually beneficial relationships. Previous literature has shown that firms attempt to protect their investments from opportunism by generating a large amount of patented marginal innovations in domains central to their industry. However, this approach may generate some ethical dilemmas by preventing firms and societies from more radical, collaborative, and much-needed environmental progress. We extend the environmental innovation literature using strategic and ethical lenses to analyze the potential of an alternative, divergent way to provide financial opportunities for a focal firm without aiming to prevent innovative opportunities for competitors. Our longitudinal analysis of 6768 environmental patents from 59 large companies worldwide in the electrical components and equipment industry shows …