IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v105y2026ics0038012126000212.html

The role of corporate governance in shaping environmental performance: Exploring industry differences

Author

Listed:
  • Agnese, Paolo
  • Arduino, Francesca Romana
  • Bruno, Emma
  • Ferri, Giovanni

Abstract

This paper investigates the critical role of corporate governance in shaping environmental performance, as reflected in the Environmental pillar of ESG scores. Using the two-step system generalized method of moments (GMM-SYS) estimator, the analysis includes companies listed on the STOXX Europe 600 between 2014 and 2022. We show that selected corporate governance characteristics - board independence, gender diversity, establishing a CSR sustainability committee, and adopting specific sustainability-related policies - enhance corporate environmental performance. Furthermore, we explore variations in environmental commitment across different industries, finding a strong influence on environmental performance for firms operating in the consumer cyclical, non-cyclical, energy, utilities, and real estate sectors. This research contributes to the existing literature by enhancing the understanding of how corporate governance mechanisms can promote sustainability initiatives. It emphasizes the need to strengthen specific governance characteristics to boost environmental stewardship across various industrial contexts. Additionally, the study encourages policymakers and managers to prioritize effective governance as a strategy to foster responsible business practices, thereby improving environmental performance.

Suggested Citation

  • Agnese, Paolo & Arduino, Francesca Romana & Bruno, Emma & Ferri, Giovanni, 2026. "The role of corporate governance in shaping environmental performance: Exploring industry differences," Socio-Economic Planning Sciences, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:soceps:v:105:y:2026:i:c:s0038012126000212
    DOI: 10.1016/j.seps.2026.102435
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012126000212
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2026.102435?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:105:y:2026:i:c:s0038012126000212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/seps .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.