Women directors improve companies’ environmental performance and reinforce corporate social responsibility, according to new research by academics from National Tsing Hua University, the University of British Columbia and the University of Utah.
The paper, “The Eco-Gender Gap in Boardrooms,” will appear in Management Science. It finds that gender diversity on boards leads to stronger environmental scores and fewer instances of negative publicity tied to pollution.
“Our findings show that women bring something distinctive to the boardroom,” said Po-Hsuan Hsu, Tsing Hua Chair Professor at National Tsing Hua University. “They are more willing to prioritize long-term environmental benefits over short-term financial gains.”
Women Directors Prioritize Sustainability
Survey evidence reveals a consistent gap in environmental attitudes. Women in Gallup polls are more likely than men to favor ecological protection over immediate economic growth.
The same trend is evident in PwC’s Annual Corporate Directors Survey, which indicates that female directors are more likely to advocate for sustainability.
“Gender diversity is not just a social issue—it is also a governance mechanism that helps firms evaluate complex tradeoffs,” Hsu said.
Yet, 43 percent of directors in the PwC survey report that voicing dissent remains difficult, suggesting that diversity of thought is crucial to avoid groupthink.
California’s Board Quota as Natural Experiment
California’s 2018 Senate Bill 826 required public companies to appoint at least one woman director. Compliance exceeded 90 percent in the first year, offering researchers a natural experiment.
By comparing affected firms with control groups, the authors found that companies adding female directors improved their environmental performance after the law took effect. Firms that already had women on boards, or those outside California, did not show the same jump.
“This gives us strong causal evidence,” Hsu said. “The law created a shock that allowed us to see how adding women to boards directly affects environmental outcomes.”
Operational Impact Beyond Policy
The study also examined operational data from the U.S. Environmental Protection Agency’s Toxic Release Inventory. A higher ratio of women directors was linked to more pollution-prevention practices and reduced toxic waste.
The results suggest that gender diversity influences not only corporate strategy but also daily facility-level decisions. “We see real effects in terms of less waste and more proactive environmental management,” Hsu said.
Implications for Corporate Social Responsibility
Female directors tend to bring non-traditional backgrounds, such as government or sustainability. They often serve on monitoring committees and push for executive pay tied to ESG performance.
“These results underscore the importance of diversity of thought inside the boardroom,” Hsu said. “Gender diversity enhances corporate social responsibility and strengthens long-term value for shareholders and society.”
The findings suggest that companies aiming to improve sustainability should view female representation not as symbolic, but as a driver of measurable change.
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