The nexus of ESG and environmental sustainability: Does gender diversity make a difference in Asian companies?

This study examines the relationship between environmental, social, and governance (ESG) and environmental sustainability performance (ESP), focusing on the moderating role of gender diversity on the board (BGD) in Asian firms listed from 2005 to 2019. Using the GMM estimation model, the results reveal a significant relationship between ESP and the ESG scores. The study further reveals that BGD strengthens the relationship between ESP and the ESG scores. This study is timely given that investors in Asian countries are becoming more environmentally sensitive and focusing more on sustainability performance. The study contributes to the literature on ESG and sustainability by offering evidence of the role of BGD in enhancing environmental sustainability performance. Furthermore, this study has significant implications for policymakers, highlighting the importance of monitoring and evaluating listed firms to ensure that they receive higher ESG ratings. Policymakers should encourage firms to disclose all energy used to minimize pollution, which will improve their ESG score and benefit the society at large through the adoption of recently released IFRS Sustainability Disclosure Standard.