IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i18p8476-d1754662.html
   My bibliography  Save this article

Silver-Haired, Carbon-Heavy? Director Age and Corporate Environmental Outcomes

Author

Listed:
  • Abongeh A. Tunyi

    (School of Management, Swansea University, Swansea SA2 8PP, UK
    Department of Financial Governance, College of Accounting Sciences, University of South Africa, Pretoria 0002, South Africa)

Abstract

Corporate boards play a pivotal role in shaping firms’ environmental strategies, yet the influence of board demographics, particularly director age, on sustainability outcomes remains insufficiently understood. This study investigates how the age profile of board members affects corporate environmental performance, including greenhouse gas emissions. Analyzing a comprehensive panel of 1843US publicly listed firms (17,218 firm-year observations) from 1996 to 2018, primarily through panel regressions with firm and year fixed effects, we find consistent evidence that firms with older boards tend to exhibit poorer environmental performance and higher direct, indirect and value chain greenhouse gas emissions. We argue that this relationship is driven by age-related differences in risk tolerance, time horizons, and sensitivity to environmental concerns. Additionally, the study explores moderating factors such as poor governance oversight (board co-option), pressure for profitability from institutional ownership, CEO social and environmental consciousness (CEO gender), and managerial ability, revealing that these governance dynamics significantly influence the strength of the director age–environmental performance link. The results, robust to endogeneity concerns, underscore the importance of considering age diversity and board refreshment in corporate governance to foster more effective environmental stewardship. These insights offer valuable implications for board members, corporate leaders, and policymakers aiming to advance sustainable business practices, but also open up opportunities for further exploration in alternative institutional contexts.

Suggested Citation

  • Abongeh A. Tunyi, 2025. "Silver-Haired, Carbon-Heavy? Director Age and Corporate Environmental Outcomes," Sustainability, MDPI, vol. 17(18), pages 1-21, September.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:18:p:8476-:d:1754662
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/18/8476/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/18/8476/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Han-Hsing Lee & Woan-lih Liang & Quynh-Nhu Tran & Quang-Thai Truong, 2024. "Do Old Board Directors Promote Corporate Social Responsibility?," Journal of Business Ethics, Springer, vol. 195(1), pages 67-93, November.
    2. Taïeb Hafsi & Gokhan Turgut, 2013. "Boardroom Diversity and its Effect on Social Performance: Conceptualization and Empirical Evidence," Journal of Business Ethics, Springer, vol. 112(3), pages 463-479, February.
    3. Ishmael Tingbani & Lyton Chithambo & Venancio Tauringana & Nikolaos Papanikolaou, 2020. "Board gender diversity, environmental committee and greenhouse gas voluntary disclosures," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2194-2210, September.
    4. Rajna Gibson Brandon & Philipp Krueger & Peter Steffen Schmidt, 2021. "ESG Rating Disagreement and Stock Returns," Financial Analysts Journal, Taylor & Francis Journals, vol. 77(4), pages 104-127, October.
    5. Rania Beji & Ouidad Yousfi & Nadia Loukil & Abdelwahed Omri, 2021. "Board Diversity and Corporate Social Responsibility: Empirical Evidence from France," Journal of Business Ethics, Springer, vol. 173(1), pages 133-155, September.
    6. Emmanuel A. Morrison & Douglas A. Adu & Guo Yongsheng & Danson Kimani & Vida Y. Saa, 2025. "Assessing the Impact of Board Sustainability Committees on Greenhouse Gas Performance: Evidence From Industrialised European Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 34(2), pages 2529-2555, February.
    7. Tunyi, Abongeh A. & Areneke, Geofry & Tob-Ogu, Abiye & Khalid, Sharif, 2023. "Doing more with more: Women on the board and firm employment," Journal of Business Research, Elsevier, vol. 154(C).
    8. Nguyen, Bang Dang & Nielsen, Kasper Meisner, 2010. "The value of independent directors: Evidence from sudden deaths," Journal of Financial Economics, Elsevier, vol. 98(3), pages 550-567, December.
    9. Chen, Liangyu & Yusuyin, Alkut & Zhang, Renyi & Zhang, Yongmin, 2025. "Boards' green background and corporate ESG," International Review of Financial Analysis, Elsevier, vol. 105(C).
    10. Steven N. Kaplan & Luigi Zingales, 1997. "Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(1), pages 169-215.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Han-Hsing Lee & Woan-lih Liang & Quynh-Nhu Tran & Quang-Thai Truong, 2024. "Do Old Board Directors Promote Corporate Social Responsibility?," Journal of Business Ethics, Springer, vol. 195(1), pages 67-93, November.
    2. Asad, Muhammad & Akbar, Saeed & Li, Jing & Shah, Syed Zulfiqar Ali, 2023. "Board diversity and corporate propensity to R&D spending," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Fan, Yiyi & Li, Shanshan & Yang, WenQi, 2024. "The impact of the percentage of female directors on corporate ESG score," Finance Research Letters, Elsevier, vol. 63(C).
    4. Sirimon Treepongkaruna & Hue Hwa Au Yong & Steen Thomsen & Khine Kyaw, 2024. "Greenwashing, carbon emission, and ESG," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8526-8539, December.
    5. Xiao, Zhongyi & Shum, Wai Yan & Lai, Fujun & Xiang, Cheng, 2025. "How do firms respond to divergent ESG ratings? The perspective of green innovation," Research in International Business and Finance, Elsevier, vol. 75(C).
    6. Drobetz, Wolfgang & von Meyerinck, Felix & Oesch, David & Schmid, Markus, 2014. "Board Industry Experience, Firm Value, and Investment Behavior," Working Papers on Finance 1401, University of St. Gallen, School of Finance, revised Dec 2015.
    7. Jianzhi Wei & Xuesong He & Yawei Wu, 2025. "ESG Performance Empowers Financial Flexibility in Manufacturing Firms—Empirical Evidence from China," Sustainability, MDPI, vol. 17(3), pages 1-21, January.
    8. Huang, Ruilei & Wei, Jiuchang, 2023. "Does CEOs’ green experience affect environmental corporate social responsibility? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 205-231.
    9. Wenqin Li & John Ziyang Zhang & Rong Ding, 2023. "Impact of Directors’ Network on Corporate Social Responsibility Disclosure: Evidence from China," Journal of Business Ethics, Springer, vol. 183(2), pages 551-583, March.
    10. María‐Florencia Amorelli & Isabel‐María García‐Sánchez, 2021. "Trends in the dynamic evolution of board gender diversity and corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 537-554, March.
    11. Wu, Zihao & Lin, Siliang & Chen, Tianhao & Luo, Chunyang & Xu, Hui, 2023. "Does effective corporate governance mitigate the negative effect of ESG controversies on firm value?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1772-1793.
    12. Liu, Ziqiang & Gao, Xin & Xu, Hao & Xu, Weidong, 2024. "Climate change exposure and stock liquidity commonality: International evidence," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    13. Rey Đặng & L.’Hocine Houanti & Michel Simioni & Jean-Michel Sahut, 2025. "The role of endogeneity in the relationship between board gender diversity and corporate social performance: evidence from a control function method," Annals of Operations Research, Springer, vol. 347(1), pages 333-365, April.
    14. Jiang, Yichi & Zhang, Xuanyue & Yao, Shujie, 2025. "On ESG and corporate employment decision: Evidence from Chinese listed firms in 2009–2022," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 854-869.
    15. Naiping Zhu & Abdullah & Muhammad Arsalan Hashmi & Muhammad Hashim Shah & JinLan Yang, 2025. "ESG Performance and the Cost of Debt of Chinese Firms: Do Board Idiosyncrasies Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9684-9714, June.
    16. Jibriel Elsayih & Rina Datt & Qingliang Tang & Ali Hamid & Maria Estela Varua, 2023. "Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4065-4091, December.
    17. Daina Mazutis & Katherine Hanly & Anna Eckardt, 2022. "Sustainability (Is Not) in the Boardroom: Evidence and Implications of Attentional Voids," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    18. Al-Najjar, Basil & Salama, Aly, 2022. "Mind the gap: Are female directors and executives more sensitive to the environment in high-tech us firms?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    19. Giovanna Gavana & Pietro Gottardo & Anna Maria Moisello, 2023. "Board diversity and corporate social performance in family firms. The moderating effect of the institutional and business environment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2194-2218, September.
    20. Denis Cormier & Luania Gutierrez & Michel Magnan, 2024. "The link between CSR performance and CSR disclosure quality: does board diversity matter?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(1), pages 237-263, March.

    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:gam:jsusta:v:17:y:2025:i:18:p:8476-:d:1754662. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.