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The aim of the research is clear: to understand whether the presence of female board members helps to reduce companies’ direct and indirect emissions. As boards of directors are responsible for major strategic directions, their composition can influence decisions relating to environmental policies and climate strategies.
Researchers Ammar Ali Gull, Tanveer Ahsan, Sabri Boubaker and Fabiana Roberto analysed a global sample of 2,758 companies across 36 countries, covering the period 2002–2019. The study takes into account total greenhouse gas emissions, as well as direct and indirect emissions.
The results show that the presence of women on the board of directors is associated with a significant reduction in GHG emissions, whether direct or indirect.
The study also highlights a critical mass effect. The presence of a single female director does not have a significant effect on emissions. However, the presence of at least two women on the board of directors leads to a notable reduction in greenhouse gas emissions.
Another key finding is that it is primarily independent female directors who contribute to improved environmental performance, rather than female executives. Their supervisory and oversight role appears to reinforce the consideration of climate issues in strategic decisions.
Finally, the positive effect of gender diversity intensifies following the introduction of gender quota laws, suggesting that such public policies can improve the effectiveness of boards of directors in terms of environmental governance.
This research provides a solid foundation for teaching in sustainable finance, corporate governance and business ethics. In particular, it illustrates how the composition of a board of directors can influence companies’ environmental strategies and climate performance.
For companies, the findings highlight that gender diversity on boards strengthens oversight, ethics and sustainability performance. Thus, companies with more female independent directors are better able to reduce their emissions and align environmental objectives with executive incentives.
Beyond the economic sphere, this research contributes to the United Nations Sustainable Development Goals, in particular SDG 5 (gender equality) and SDG 13 (climate action).
It shows that promoting gender diversity on boards of directors can serve as a practical lever for strengthening corporate environmental accountability and encouraging more sustainable practices in sectors with a high climate impact.
