According to study provided by the Bank for International Settlements, companies with more women in middle management create less carbon than those dominated by men.
The research implies that hiring women and enhancing gender diversity in the workforce, not just at the board level, but throughout the company, can be beneficial.
From 2009 to 2019, an analysis of 2,000 publicly traded companies in 24 advanced economies found that a 1% increase in the number of female executives was connected with a 0.5 percent reduction in carbon emissions.
The researchers, Yener Altunbas, Leonardo Gambacorta, Alessio Reghezza, and Giulio Velliscig, noted, “This effect is robust controlling for institutional differences attributable to culture and religion.” The BIS is a Swiss-based supervision organisation for the world’s central banks, and it released the study.
Previous studies on the relationship between female board members and carbon emissions have yielded “conflicting results,” according to the authors. They looked into the management structure below the board level.
“Female managers are more motivated toward environmental conservation than their male peers,” they discovered. Managers are just as crucial as the board when it comes to a company’s climate strategy since they must “choose a viable plan to fulfil the objectives.”
They used other scholarly articles to explain their findings, claiming that women are “more inclined to consider general social well-being than than focusing narrowly on shareholders’ interests.”
