 Do Corporate Governance Mechanisms Help to Reduce Carbon Emissions? Some Empirical Evidence on Listed Companies in France, Germany, the United Kingdom, and JapanCécile Cezanne, Gaye Del Lo, Yves Kassi and Sandra Rigot Business Strategy and the Environment, 2025, vol. 34, issue 6, 6948-6967 Abstract: Climate change is one of the greatest challenges facing humanity today. In this paper, we analyze the role of firms in mitigating climate change through their model of corporate governance. We examine the impact of key organizational control and incentive mechanisms on firms' carbon emission intensity. Using a panel of 305 listed firms in France, Germany, the United Kingdom, and Japan over the period 2015–2021, we show that board gender diversity plays a crucial role in reducing both firms' direct and indirect carbon emissions. Moreover, the presence of a sustainability committee can be an effective arrangement to limit direct GHG emissions. However, our study finds no significant evidence for the variables of board size, board independence, and top sustainability‐based executive compensation. Our findings vary depending on the high‐ or low‐emission sector. Based on these results, we propose several managerial and policy implications that can help improve corporate climate performance. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:6:p:6948-6967 Ordering information: This journal article can be ordered from Access Statistics for this article Business Strategy and the Environment is currently edited by Richard Welford More articles in Business Strategy and the Environment from Wiley Blackwell |
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