Board gender diversity and sustainability performance: Nordic evidence

This study investigates the relationship between board gender diversity and sustainability performance using a sample of 205 Nordic‐listed firms across countries Denmark, Finland, Norway, and Sweden over the period 2002–2020. Drawing on gender social role theory and upper echelons theory, our results show a positive and significant association between board gender diversity and sustainability performance. Furthermore, the study extends the finding indicating that a “critical mass” of at least 30% of women on boards is required to have a significant effect on sustainability performance. The study also reveals that the association between board gender diversity and sustainability performance is more pronounced in the carbon‐intensive industry subsample. Therefore, our study, amidst inconsistent board gender diversity and firm performance studies, suggests increasing the “critical mass” of women on boards to have a positive effect on sustainability performance.