Corporate board diversity and carbon disclosure: evidence from France

Abstract

Purpose: This study aims to examine the association between carbon disclosure and board diversity by drawing on a multiple theoretica frameworks that embody five dimensions, namely, board nationality, gender, independence, tenure and age, within firms with varying decarbonization performance and industry carbon impact. Design/methodology/approach: This study uses the generalized method of moments approach. The sample includes Société des Bourses Françaises 120 (SBF 120) nonfinancial French listed firms for a period of 10 years (2010–2019). Findings: Being sensitive to increased stakeholders’ information demands, diverse boards tend to disclose a higher volume of carbon information to improve environmental transparency and protect firm legitimacy. Findings show that board independence and nationality play a key role in enhancing carbon disclosure. Research limitations/implications: The authors’ evidence underscores the crucial role of board diversity in shaping sustainability strategies and disclosure in an economy targeting carbon neutrality. The study encourages management and policymakers to increase board diversity that goes beyond gender diversity. Originality/value: To the best of authors’ knowledge, this study is the first to investigate the role of board diversity as a multidimensional concept in enhancing the carbon disclosure of SBF 120 large firms, which are subject to communicating their contributions to reducing their carbon footprint.