The role of the board of directors’ gender diversity moderation in the relationship between carbon emissions and ESG performance

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Abstract

This study examines the relationship between corporate carbon emissions and environmental, social, and governance (ESG) performance while evaluating the moderating influence of board gender diversity within Indonesia’s regulatory environment. Drawing on resource dependence theory (RDT), the analysis positions board composition as a strategic governance mechanism through which firms secure essential resources, including stakeholder legitimacy, environmental expertise, and enhanced oversight, to respond to sustainability pressures. Using panel data from publicly listed firms between 2014 and 2024 and employing fixed effects and lagged regression models, the findings show a positive association between carbon emissions and subsequent ESG performance, indicating that firms with higher environmental exposure tend to strengthen their sustainability disclosures. Although board gender diversity does not directly affect ESG outcomes, it reinforces governance structures that enable more transparent and accountable environmental practices. The study highlights limitations within Indonesia’s compliance-oriented ESG framework and underscores the need for governance-focused reforms to improve the credibility and effectiveness of sustainability reporting.

Keywords: Board Gender Diversity, Carbon Emissions, Corporate Governance, ESG Performance, Resource Dependence Theory (RDT)

Authors’ individual contributions: Conceptualization — A.J.; Methodology — A.J.; Formal Analysis — A.J.; Data Curation — A.P.N.W.; Writing — Original Draft — N.E.P.; Writing — Review & Editing — N.E.P.; Supervision — A.J.

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

JEL Classification: G34, J16, M14, O16, Q56

Received: 28.10.2025
Revised: 09.12.2025; 12.12.2025
Accepted: 17.12.2025
Published online: 19.12.2025

How to cite this paper: Putri, N. E., Juanda, A., & Wicaksono, A. P. N. (2025). The role of the board of directors’ gender diversity moderation in the relationship between carbon emissions and ESG performance. Corporate Board: Role, Duties and Composition, 21(4), 56–67. https://doi.org/10.22495/cbv21i4art5