Exploring Biodiversity Disclosure and Financial Performance in the European Context: The Moderating Role of Board Experience

Silvio Bianchi Martini, Antonio Corvino, Federica Doni and Antonietta Trecca

Business Strategy and the Environment, 2026, vol. 35, issue 3, 4083-4101

Abstract: In recent years, the growing recognition of biodiversity as a pivotal pillar in environmental and economic stability has intensified. Its role extends beyond ecological preservation, influencing business resilience, risk management and long‐term sustainability strategies. However, while previous studies explored the link between biodiversity disclosure and financial performance, the experience of boards of directors (BoDs) in shaping this relationship remains largely overlooked. Against this backdrop, our study seeks to explore how biodiversity disclosure affects corporate performance over the period 2014–2023 and investigates the moderating effect exerted by BoD experience. A longitudinal approach is applied to a sample of 481 leading European listed companies across various industries. Building on the legitimacy theory (LT) and upper echelon theory (UET), our findings show a significant positive relationship between biodiversity disclosure and financial performance, with BoD experience strengthening this effect. From a theoretical perspective, the integration of LT and UET fuels the broader academic debate on how managerial characteristics influence environmental disclosure and its financial outcomes. From a practical standpoint, our research sheds light on how nature and biodiversity disclosure can play a crucial role in supporting corporate strategic development, providing valuable insights for managers, investors, and policymakers. Overall, by integrating natural capital protection and restoration into its core activities, firms can pave the way to novel growth patterns consistent with the planet's future.

Date: 2026
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