Board of Directors' characteristics and environmental SDGs adoption: an international study

Abstract

Drivers of environmentally conscious firm behaviour have gained increasing attention over past decades. The Board of Directors holds a central role in corporate decision‐making, and previous empirical evidence suggests that its characteristics could influence corporate environmental performance. This paper contributes to the literature with the first evidence of the influence certain board characteristics have on whether a firm ultimately supports one or more environmental SDGs. Our focus is on board size, gender diversity, board independence and CEO duality. Logistic and fractional regressions on 4417 globally listed firms highlight that board size, the share of female directors, and the share of independent directors are significant drivers of support for environmental SDGs. The results and insights revealed in this study should be helpful to policymakers, investors and corporations in evaluating the effectiveness of corporate governance characteristics and fostering corporate contributions to the 2030 Agenda.

Walking on the gender tightrope: Unlocking ESG potential through CEOs' dynamic capabilities and strategic board composition

“…In the current business landscape, achieving high ESG performance has become increasingly imperative for corporations (Delgado-Ceballos et al, 2023;Jebe, 2019;Liang & Li, 2023). Due to the complexities of ESG, managers must address different demands from various stakeholder groups, realize the commercial potential of ESG investments, and cope with the increasing demands of ESG investing (Bazel-Shoham et al, 2023;De Masi et al, 2021;Issa, 2023;Taglialatela et al, 2023). Against this backdrop, this study adopted a multi-theoretical perspective to examine the role of CEOs' dynamic capabilities for ESG performance.…”

“…With the rising awareness of sustainability, modern corporations have made sustainability a core part of their business strategy (Bosch-Badia et al, 2013;Wood, 1991). The United Nation's (2015) sustainable development goals (SDGs) have emerged as a crucial framework for companies striving to achieve sustainable development (Sandberg et al, 2023;Taglialatela et al, 2023). These goals have garnered significant attention and adoption within the corporate world because they provide concrete and measurable targets for achieving sustainability (Pizzi et al, 2021;Taglialatela et al, 2023).…”

“…The United Nation's (2015) sustainable development goals (SDGs) have emerged as a crucial framework for companies striving to achieve sustainable development (Sandberg et al, 2023;Taglialatela et al, 2023). These goals have garnered significant attention and adoption within the corporate world because they provide concrete and measurable targets for achieving sustainability (Pizzi et al, 2021;Taglialatela et al, 2023). Moreover, the external determination of SDGs contributes to increased accountability among companies (Silva, 2021;Taglialatela et al, 2023).…”

“…These goals have garnered significant attention and adoption within the corporate world because they provide concrete and measurable targets for achieving sustainability (Pizzi et al, 2021;Taglialatela et al, 2023). Moreover, the external determination of SDGs contributes to increased accountability among companies (Silva, 2021;Taglialatela et al, 2023).…”

“…The moderator, BGD, is the percentage of female directors in relation to the total board size (Carvajal et al, 2022;Glass et al, 2016;Nadeem, Gyapong, & Ahmed, 2020;Orazalin & Baydauletov, 2020;Taglialatela et al, 2023).…”