The Eco-Gender Gap in Boardrooms

Abstract

To examine what women bring to the boardroom table, we first show a significant gender gap in viewing the tradeoff between environmental and economic benefits using the Gallup Poll. We next demonstrate that such a gender gap extends into boardrooms: Having female directors is associated with more environmentally friendly business operations, but also with higher investment in environmental protection at the same time. Results from an analysis using a California law change that imposed board gender quotas point to a potentially causal effect from female directors. Employing a rich set of director demographics and board characteristics, we show that none consistently supersedes the share of female directors in explaining corporate environmental performance, suggesting that female directors play a unique role in explaining firms’ investment in environmental protection.

Keywords: female directors, board diversity, corporate environmental performance, pollution prevention, emissions, diversity of thought JEL classification: G30, G38, G41 female directors, board diversity, corporate environmental performance, pollution prevention, emissions, diversity of thought JEL classification: G30

JEL Classification: G30; G38; G41