Examining the impact of board composition on environmental, social, and governance disclosure

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Abstract

Given the world’s complex and pressing environmental and social challenges, businesses must effectively represent their approach to sustainability by informing stakeholders about how they have decided to mitigate the effects of their actions and capitalize on sustainability-related opportunities. Stakeholders put pressure on businesses to make responsible decisions by upholding high environmental, social, and governance (ESG) standards and minimizing their impact on society and the environment. The board of directors is responsible for aligning corporate conduct with the needs of all stakeholders and steering the firm toward long-term growth processes. The purpose of this paper is to look into how some corporate governance variables affect ESG disclosure in Italian listed companies. More specifically, the paper looks into how board composition affects ESG disclosure and whether gender diversity on boards has a positive impact on ESG disclosure. To fulfill the research goal, the sample investigated is all firms registered on the Italian stock exchange, excluding financials, from 2018 to 2022. In terms of methodology, a basic linear regression model that takes into account numerous properties of the board of directors was performed. The ESG score was obtained using the Refinitiv database, while the other statistics were obtained from the individual corporations’ corporate governance reports. The research findings allow us to highlight the impact of diversity on boards in ESG disclosure, confirming that there is a positive and significant relationship. As a result, the research contributes to a better practical and theoretical understanding of the critical role that gender diversity plays in boosting corporate governance and ESG best practices through increased corporate openness and accountability. The study’s findings may serve as a motivation for policymakers and social regulators to continue to push initiatives and changes that promote gender equality on corporate boards. All because a diverse board of directors fosters better sustainable governance, leading investors to view companies engaged in ESG activities as a safer investment.

Keywords: Board Size, Diversity, Board, Governance, ESG, Sustainability

Authors’ individual contributions: Conceptualization — M.A.B., G.S., M.R., and G.B.; Methodology — M.A.B., G.S., M.R., and G.B.; Software — M.A.B., G.S., M.R., and G.B.; Validation — M.A.B., G.S., M.R., and G.B.; Formal Analysis — M.A.B., G.S., M.R., and G.B.; Investigation — M.A.B., G.S., M.R., and G.B.; Resources — M.A.B., G.S., M.R., and G.B.; Data Curation — M.A.B., G.S., M.R., and G.B.; Writing — M.A.B., G.S., M.R., and G.B.; Funding Acquisition — M.A.B., G.S., M.R., and G.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M14, M41

Received: 11.07.2025
Revised: 12.10.2025; 24.10.2025
Accepted: 03.11.2025
Published online: 05.11.2025

How to cite this paper: Baldini, M. A., Sicoli, G., Rija, M., & Bronzetti, G. (2025). Examining the impact of board composition on environmental, social, and governance disclosure. Corporate Board: Role, Duties and Composition, 21(3), 68–75. https://doi.org/10.22495/cbv21i3art6