The Nexus of ESG and Environmental Sustainability: Does Gender Diversity Make a Difference in Asian Companies?

Abstract This study examines the association between Environmental, Social, and Governance (ESG) and Environmental Sustainability Performance (ESP), focusing on the moderating role of gender diversity on the board (BGD) in Asian companies listed from 2005–2019. Model 1 is estimated using the GMM system to investigate the association between ESP and ESG, while Model 2 examines the moderating effect of BGD on this association. The results reveal a significant association between ESP and the ESG score, with BGD strengthening this relationship. This research contributes to the literature on ESG and sustainability by offering evidence of the role of BGD in enhancing sustainability performance. Furthermore, this study has significant implications for policymakers, highlighting the importance of monitoring and evaluating listed companies to ensure they receive higher ESG ratings. Encouraging firms to disclose their energy use and minimize pollution can improve their ESG score, benefitting society.