Audit committee gender diversity and ESG disclosure: Evidence from the UK

This study explores the influence of female representation on audit committees on the level of environmental, social, and governance (ESG) disclosure in UK-listed firms. Drawing primarily on resource dependence theory and critical mass theory, the research investigates whether the presence and number of female members enhance ESG transparency and whether this relationship operates through a specific governance channel, namely the appointment of a female audit committee chairperson. The analysis is based on panel data from 175 non-financial FTSE 350 firms over the period 2011–2024. Using a range of econometric techniques, including OLS, fixed effects, and two-stage least squares (2SLS), the study finds a significant positive relationship between female audit committee representation and ESG disclosure. Notably, the effect becomes stronger when audit committees reach a critical mass of at least three women. In addition, the study develops a mediation-based argument that female representation may influence ESG disclosure through the appointment of a female audit committee chairperson, who may strengthen agenda-setting, oversight quality, and attention to sustainability-related reporting. These findings highlight the governance role of gender diversity in promoting accountability and sustainability reporting. The study offers practical implications for policymakers and corporate leaders aiming to strengthen ESG practices through inclusive and effective audit committee structures.