Board Gender Diversity, And Corporate Environmental Performance: A Study In Australia

Abstract

The study investigated how board gender diversity affects firms’ environmental performance, particularly in the aspect of greenhouse gas emissions and environmental innovations. Analyzing data from the top 300 companies on the Australian Stock Exchange from 2014 to 2023, the LS regressions found a statistically significant negative correlation between the representation of females on board and greenhouse gas (GHG) emissions. In other words, companies with more women on their boards tended to have lower GHG emissions. Conversely, the study revealed a statistically significant positive association between the percentage of females on the board and environmental innovation. These findings demonstrate the support to various corporate governance implementation and public policies enacted worldwide to promote greater gender diversity on corporate boards. The results suggest that board gender diversity improves the efficiency of the board in addressing the interests of a wider range of stakeholders. The insights from this study could benefit stakeholders and regulators seeking to improve corporate governance systems as well as environmental performance.