Board gender diversity and emissions performance: Insights from panel regressions, machine learning, and explainable
Mohammad Hassan Shakil1, Arne Johan Pollestad2, Khine Kyaw2
1NTNU Business School, Norwegian University of Science and Technology, Trondheim, Norway; Smith School of Enterprise and the Environment, University of Oxford, United Kingdom.
Journal of Environmental Management
|February 5, 2026
Summary
Board gender diversity (BGD) improves emissions performance (EP) up to 35%, with a 22% minimum threshold. ESG controversies do not weaken this link, indicating governance drives improvements.
Area of Science:
- Corporate governance
- Environmental, Social, and Governance (ESG) studies
- Sustainability performance
Background:
- European Union mandates are increasing gender quotas on corporate boards.
- Understanding the link between board gender diversity (BGD) and corporate environmental performance (EP) is crucial.
Purpose of the Study:
- To investigate the relationship between BGD and EP in European firms.
- To determine optimal BGD levels for EP and identify mediating factors.
Main Methods:
- Panel regression analysis
- Advanced machine learning algorithms
- Explainable AI (XAI)
- Path analysis
Main Results:
- A non-linear relationship exists: EP improves with BGD up to an optimal 35% level.
- A minimum BGD threshold of 22% is required for significant EP improvements.
- ESG controversies do not affect the BGD-EP relationship, suggesting governance mechanisms are key.
Conclusions:
- Board gender diversity positively impacts emissions performance, but only up to an optimal threshold.
- The effect of BGD on EP is driven by governance, not symbolic ESG actions.
- Environmental innovation does not mediate the BGD-EP relationship.
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