NEWS AND INSIGHTS UPDATE:
It’s been proven again and again that businesses perform better and stocks rise when women are on corporate boards, but did you know that the number of women on a corporate board directly correlates with a company’s sustainability performance? It’s true according to research from the University of California Berkeley’s Haas School of Business.
The “Women Create a Sustainable Future” study found that companies with one or more women on their board of directors are significantly more likely to have improved sustainability practices. Study co-author Adjunct Assistant Professor Kellie McElhaney explains:
“We found, like researchers before us, that the sweet spot is three. Companies with at least three female board members had a better ESG performance but we’re talking about very few companies who meet this threshold–just three of the 1,500 we studied: Kimberly-Clark, General Motors, and Walmart.”
The study authors measured corporate environmental, social, and governance (ESG) performance using a dataset of Fortune 1500 companies. ESG is a widely accepted measure of corporate sustainability for investors and is used to analyze risk management, opportunity recognition, and strong leadership. You can read the full report here.