Recent events such as the 15th Conference of Parties (COP15) and the European Green Deal have brought biodiversity issues to the forefront of international and European agendas, with increasing pressure on companies to improve their disclosure and performance related to biodiversity. With growing focus on the relationship between board gender diversity (BGD) and environmental performance, this study investigates the effect of BGD on biodiversity disclosure (BD).
This research explores the relationship between BGD and BD by analysing a sample of 2,793 firm-year observations from European non-financial companies listed on the European STOXX600 index from 2009 to 2020. A three-way fixed-effects ordered logistic regression model was employed, incorporating legitimacy and critical mass theory. The results demonstrate a positive association between BGD and BD, with a stronger relationship for companies in exploitative industries. However, there was no support found for the critical mass theory, and no mediating effect of environmental trainings or partnerships was detected. These findings highlight the importance of gender diversity in promoting sensitivity to societal and institutional concerns, as well as the need for increased transparency and accountability in companies' reporting and actions related to biodiversity. The study's implications call for companies to take proactive measures in promoting diversity and sustainability to meet growing regulatory and stakeholder demands.
Table of Contents
1 Introduction
2 Theoretical and regulatory framework
2.1 Legitimacy and critical mass theory
2.2 Regulatory framework
3 Literature overview and hypothesis development
3.1 Background on biodiversity
3.2 Board Gender Diversity and Biodiversity Disclosure
4 Research methodology
4.1 Sample
4.2 Dependent variables
4.3 Independent variables
4.4 Mediating variables
4.5 Control variables
4.6 Models
5 Results
5.1 Descriptive statistics
5.2 Main results
5.3 Further analysis
5.4 Robustness check
5.5 Endogeneity
6 Discussion
6.1 Limitations and recommendations
7 Conclusion and outlook
Research Objectives and Topics
This study investigates the relationship between board gender diversity (BGD) and biodiversity disclosure (BD) among European companies, while examining the potentially mediating roles of internal environmental trainings and external environmental partnerships within the framework of legitimacy and critical mass theories.
- Analysis of the correlation between the percentage of female board members and biodiversity disclosure levels.
- Evaluation of the "critical mass" theory regarding the impact of three or more female directors on board decisions.
- Examination of mediation effects from environmental training and partnerships on corporate biodiversity reporting.
- Comparative assessment of exploitative versus non-exploitative industries regarding their biodiversity disclosure strategies.
Excerpt from the Book
1 Introduction
According to a recent report of the United Nations Environmental Program (UNEP), 44 trillion US Dollar of economic value generation, which is more than half the world's GDP, is moderately or highly dependent on nature (UNEP, 2020a). This highlights the importance of biodiversity, which is the variation of species and genetics among animals, plants, fungi, or microorganisms, for economic health (Lohbeck et al., 2016). The Convention on Biological Diversity (CBD) has recently adopted the Kunming-Montreal Global Biodiversity Framework, which contains new targets for protection and restoration of biodiversity and ecosystems. One of the key targets is to place 30% of land and marine areas under protection by 2030, while respecting the rights of indigenous peoples and local communities. International funding for conservation is also set to be significantly increased, with a call for all actors across society, including businesses and financial institutions, to contribute through their interactions with nature (CBD, 2022).
Biodiversity loss poses several potential risks for a firm, including operational, reputational, regulatory, and legal, market and financial risks (McCraine et al., 2019; UNEP, 2020b). These risks may constrain a firm's competitiveness, profitability and long-term viability and also challenge the legitimacy of a company. Furthermore, the protection and conservation of biodiversity takes on an even greater significance as close contact between humans and wildlife increases the transmission of zoonotic diseases such as the Covid-19 pandemic (Ceballos et al., 2020).
Summary of Chapters
1 Introduction: This chapter introduces the global importance of biodiversity loss and the pressure on companies to improve reporting, establishing the link to corporate governance.
2 Theoretical and regulatory framework: This section presents the foundational theories of legitimacy and critical mass, and details the EU regulatory environment influencing corporate disclosure.
3 Literature overview and hypothesis development: This chapter reviews existing literature on biodiversity and gender diversity, culminating in the formulation of the study's three core hypotheses.
4 Research methodology: This section outlines the sample of 2,793 firm-year observations from the STOXX600 index and defines the variables and empirical models used.
5 Results: This chapter presents the descriptive statistics and main regression findings regarding the impact of gender diversity and the lack of mediation by environmental training or partnerships.
6 Discussion: This section interprets the findings in the context of legitimacy theory, noting the nascent state of biodiversity reporting and identifying limitations such as sample size and scope.
7 Conclusion and outlook: This chapter summarizes the study's findings, highlighting the positive association between board gender diversity and biodiversity disclosure while acknowledging that further transparency is required.
Keywords
Biodiversity disclosure, Environmental performance, Board gender diversity, Critical mass, Environmental trainings, Environmental partnerships, Corporate governance, Legitimacy theory, Sustainability reporting, STOXX600, European companies, ESG, Nature-related financial disclosure, Impact reduction, Restoration initiatives.
Frequently Asked Questions
What is the core subject of this research?
The research examines the relationship between board gender diversity and the transparency of biodiversity disclosure in European listed companies.
What are the central thematic fields covered?
The paper covers corporate governance, specifically gender diversity on boards, environmental management, sustainability reporting, and the preservation of biodiversity.
What is the primary goal of the study?
The goal is to determine if higher gender diversity on corporate boards leads to improved biodiversity disclosure and if specific organizational factors like environmental training act as mediators in this process.
Which scientific methodology is implemented?
The study utilizes a three-way fixed-effects ordered logistic regression model on a sample of 2,793 firm-year observations from the European STOXX600 index (2009–2020).
What is covered in the main section?
The main section includes the development of hypotheses based on legitimacy and critical mass theories, the definition of variables, and the statistical analysis of the relationship between diversity and environmental reporting.
What are the primary keywords for this work?
Key terms include biodiversity disclosure, board gender diversity, legitimacy theory, critical mass, sustainability reporting, and environmental management.
How is the "critical mass" theory applied to the data?
The study tests whether having a threshold of three or more female directors on a board significantly influences the firm's level of biodiversity engagement compared to boards with fewer women.
Does the paper find a mediating effect for environmental training?
No, the empirical findings demonstrate that environmental trainings and partnerships do not show a statistically significant mediating effect on the relationship between board gender diversity and biodiversity disclosure.
Is the biodiversity disclosure practice currently consistent across industries?
The research notes that disclosure remains a nascent topic overall, though it identifies a stronger relationship between board gender diversity and biodiversity disclosure in industrially exploitative sectors compared to non-exploitative ones.
- Citar trabajo
- Anonym (Autor), 2023, Board Gender Diversity and Biodiversity Disclosure. A European Analysis Focusing on the Mediating Effect of Environmental Trainings and Partnerships, Múnich, GRIN Verlag, https://www.grin.com/document/1372980
