Gender Diversity and Corporate Sustainability: Evidence from ESG Risk Scores of S&P 500 Firms
DOI:
https://doi.org/10.59926/jodprp.vol10/2026/9Keywords:
Corporate Sustainability, Firm performance, ESG risk scores, Female CEOAbstract
This study aims to achieve two main goals. The first goal is to analyse the relationship between the firm’s performance, revenue growth, and size, on one hand, and the firm’s environmental, social and governance (ESG) scores, on the other. Second, it seeks to determine whether this relationship between firm performance and ESG risk scores is moderated by the presence of a female chief executive officer (CEO), on a sample of 426 S&P 500 firms. The study uses descriptive statistics, correlation, and ordinary least squares (OLS) regression with Python. The results indicate that ESG risk scores have a strong positive association with firm performance; and that firms with better financial performance have better sustainability practices. Similarly, the relationship between firm performance and ESG risk score is significantly enhanced in the presence of a female CEO. However, the impact of a female CEO varies, suggesting that the effect of gender diversity on a firm’s sustainability depends on firm-specific factors, including size and performance. These findings highlight that corporate sustainability emphasises the value of increasing gender diversity and incorporating sustainability goals within corporations’ governance frameworks. Furthermore, this study proposes enhancing gender diversity and aligning the firm’s sustainability objectives more effectively with its overall goals to improve societal and corporate outcomes.
JEL Classification Codes: G3, G38, G39
Conflict of Interest: The authors declare no conflict of interest.
Acknowledgement: The views and opinions are those of the authors and do not represent the views of any institution.
AI Declaration/Use of Generative AI: No AI tools were used in this study.
Funding: No
Article History
Submitted: 9 Dec. 2025; Last Revised: 30 July 2026; Accepted: 15 Sep. 2026
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