Impact of Corporate Board Characteristics on Carbon Intensity: Navigating the Path to Low-Carbon Economy

This study explores the impact of corporate board characteristics on carbon intensity in Indian firms, emphasizing the significance of corporate governance practices. Using data from 131 companies listed in the BSE 500 index from 2016 to 2022, the study analyses how specific board attributes—namely, size of board, gender diversity, independence of board, and CEO duality—influence carbon emissions. Using a fixed-effects model, we find that the firms with larger boards and more gender-diverse leadership have lower carbon intensity. Interestingly, board independence is positively related to carbon intensity; this suggests that independent directors may face challenges in steering firms towards sustainable practices. CEO duality has no significant impact on emissions. For businesses engaged in high emission industries, these results provide a useful and practical insight that firms can reduce environmental damage by expanding board size and promoting gender diversity. For policymakers, the findings emphasize the importance of encouraging gender diversity and optimal board sizes as part of a regulatory agenda to improve firms’ environmental performance.