Does diversity among directors affect corporate climate change behaviour? Evidence from Japan

Daisuke Nogata, Yuriko Hayabuchi and Shiro Hori

Applied Economics Letters, 2024, vol. 31, issue 6, 518-523

Abstract: This paper examines how female and foreign corporate directors influence their corporation’s climate change behaviour. This study found that female directors contribute to the formulation of their company’s climate change vision, and foreign directors contribute to the formulation of a climate change mission. Japan has set a long-term goal of reducing greenhouse gas emissions to net zero by 2050, an extremely difficult goal to achieve. Our results suggest that it is important to appoint female and foreign directors to achieve net zero emissions. Our results also suggest that diversity among company directors needs to be further expanded.

Date: 2024
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DOI: 10.1080/13504851.2022.2140100

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