Companies With More Women Better for Planet — BIS Study

Research published by the Bank for International Settlements found that companies with more women in managerial positions have less carbon emissions than those dominated by men.

The study analyzed 2,000 listed companies from advanced economies and found that a 1 percent increase in female managers leads to a 0.5 percent decrease in a company’s carbon emissions.

“This effect is robust when controlling for institutional differences due to culture and religion,” said the researchers, Yener Altunbas, Leonardo Gambacorta, Alessio Reghezza and Giulio Velliscig.

According to the study, firms with greater gender diversity have reduced 5 percent more carbon emissions than male-dominated ones after the Paris Agreement in 2015.

The authors noted that previous research on the links between gender diversity in companies and carbon emissions have only been focused on female board directors and have often produced “conflicting” conclusions.

While board directors set a company’s environmental goals, managers are “those that select the suitable strategy to achieve the firms’ objectives”. Female managers, the study found, tend to be “climate-sensitive” in strategizing than their male counterparts.

Female managers might be “more likely to take into account the overall wellbeing of society without necessarily focusing narrowly on the interest of shareholders,” said the researchers, citing other academic papers.

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