Female directors' representation and firm carbon emissions performance: does family control matter?

Abstract

Purpose This study investigates whether female board representation reduces carbon emissions in French-listed companies. It also analyzes to what extent and in what direction family control moderates this relationship. Design/methodology/approach The authors collected data from nonfinancial French-listed companies between 2017 and 2022, totalizing 468 firm-year observations. Then, the data were analyzed using linear regression models with panel data. Findings Findings show that board diversity improves firms' emission reduction performance, suggesting that women on board constitute a valuable resource that can bring distinctive management styles to improve carbon emission performance. Furthermore, the carbon performance-favorable orientation of women on board tends to be weaker, according to the family’s interests and wishes. Practical implications This research highlights that female directors help boards address carbon risk only in nonfamily firms. Our study also supports policymakers' efforts to improve diversity in the board of directors through the mandatory female directorship quota of 40% since 2011 in France. Originality/value This study extends past literature by providing new insights into the effect of board gender diversity and family control on carbon emissions performance in the French context, which is characterized by an increasing trend for higher carbon engagement by listed firms in France, mainly after the Paris Agreement.