Abstract:
Purpose: Greenhouse gas emissions are acknowledged as a major contributor to global
climate change. Recently, stakeholders are increasingly concerned about environmental
issues and expect companies to provide comprehensive information regarding
environmental practices and impacts. This paper explores the relationship between
board gender diversity and the voluntary disclosure of greenhouse gas emissions among
companies in Sri Lanka.
Design/Methodology/Approach: The paper utilizes panel data collected from non-
financial listed companies in Sri Lanka for the period from 2020 to 2024. The final sample
includes 50 firms and 250 firm-year observations, with greenhouse gas emissions
disclosure serving as the dependent variable and board gender diversity as the
independent variable.
Findings: Research indicates that companies with greater gender diversity on their
boards demonstrate a positive and statistically significant (R = 0.92, p < 0.001) impact on
the voluntary disclosure of greenhouse gas emissions in Sri Lanka. The outcome of
regression claims that gender diversity explains 22% of the variance in greenhouse gas
emissions disclosure (R2 = 0.22, F = 28.93, p < 0.001). Other factors, such as other
corporate governance, may account for the remaining 88% of a company's disclosure.
This aligns with the resource dependency theory that diversity enhances a board's
capacity for effective advising and monitoring. Diverse leadership fosters a broader range
of perspectives and experiences, often translating into a stronger focus on sustainability
initiatives. As a result, board gender diversity prioritizes transparency and
accountability, leading to improved voluntary disclosure of greenhouse gas emissions.
Research limitations: The study is limited to companies listed on the Colombo Stock
Exchange and may not represent all sectors or unlisted firms in Sri Lanka.
Implications: The findings suggest that enhancing board gender diversity can drive
better voluntary greenhouse gas emission disclosure practices. Policymakers and
corporate leaders should promote gender diversity in leadership roles as a strategy to
improve environmental reporting and foster a culture of accountability within
companies.
