Unlocking ESG Potential: The Interaction of Gender Diversity and Specialized Skills

Abstract

Amidst global regulatory efforts to increase female representation on corporate boards and growing academic interest in gender-diverse leadership, this study examines the impact of gender diversity and directors' specialized skills on ESG performance. Analyzing 1880 publicly listed European companies from 2010 to 2022, the research uncovers a positive link between gender diversity and ESG scores, as well as the beneficial impact of directors with industry or finance expertise. This investigation contributes to the evolving understanding of how gender diversity and directors' skills synergistically impact organizations' sustainable practices, offering practical insights for companies seeking to enhance their ESG performance.

Keywords: corporate governance, Women on boards, Board expertise, ESG, Sustainability