Does the Attentiveness of NEDs to ESG Issues Influence Corporate Sustainability?

Andrew Clare, Carlos Manuel Pinheiro and Alberto Franco Pozzolo

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 6, 7938-7955

Abstract: In this paper, our core research question is: do NEDs' ESG attentiveness contribute to corporate sustainability? Being detached from daily management decisions, NEDs are well‐positioned to supervise the effort for more sustainable business activities. Indeed, previous empirical research has confirmed that companies that share board directors exhibit superior ESG credentials. Based on individual board characteristics for all FTSE‐350 companies listed from 2012 to 2022, our study makes an original contribution to this literature. We find an economically and statistically significant relationship between ESG corporate performance and the presence on a board of NEDs that serve on the boards of other companies that have a strong ESG performance. We make this contribution by proposing and calculating a measure of NED attentiveness. From a corporate governance perspective, our findings underscore the practical influence of specific board capital on corporate ESG performance.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/csr.70118

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:6:p:7938-7955

Access Statistics for this article

More articles in Corporate Social Responsibility and Environmental Management from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().