Board gender diversity and sustainability performance: Nordic evidence

Abstract

This study investigates the relationship between board gender diversity and sustainability performance using a sample of 205 Nordic-listed firms across countries Denmark, Finland, Norway, and Sweden over the period 2002–2020. Drawing on gender social role theory and upper echelons theory, our results show a positive and significant association between board gender diversity and sustainability performance. Furthermore, the study extends the finding indicating that a “critical mass” of at least 30% of women on boards is required to have a significant effect on sustainability performance. The study also reveals that the association between board gender diversity and sustainability performance is more pronounced in the carbon-intensive industry subsample. Therefore, our study, amidst inconsistent board gender diversity and firm performance studies, suggests increasing the “critical mass” of women on boards to have a positive effect on sustainability performance.