Do board characteristics affect environmental performance? A study of EU firms

This paper explores the relationship between board characteristics and environmental performance. We adopt a triple perspective of environmental performance, focussing on emissions (waste and CO2), resource consumption (water and energy), and the implementation of environmental initiatives. The sample comprises 644 nonfinancial European Union–based companies. The data cover the period 2002 to 2017. The results confirm that gender diversity and the existence of a corporate social responsibility committee are positively associated with the firms' environmental performance. This finding is consistent with the view that the educational background, talent, and experience of women help promote sustainable environmental initiatives. The existence of a corporate social responsibility committee reflects a company's commitment to sustainable development.