Researchers at a Xian university say female-led companies tend to make more environmentally friendly decisions. The study analyzed 350 firms from high-pollution industries listed on the Shenzhen and Shanghai stock exchanges between 2008 and 2018.
According to researchers, female-led companies tended to make decisions favoring the environment. For example, reducing waste gas emissions, water pollution, toxic residues, and greenhouse gases.
The research team said that Board members and shareholders might promote women to executive positions to improve their corporate sustainable environmental strategies.
Zhang Ying, an associate professor, pointed out that policymakers and board members should discuss promoting women to corporate leadership positions. Such a move would provide social and environmental benefits for stakeholders and society.
The research team also said China aims to achieve carbon neutrality before 2060.
They believe that a female leader will contribute to this goal.
The proportion of female executives and chief financial officers in China’s listed companies is higher than the global average. However, women are under-represented on corporate boards in China.
According to MSCI, an American finance company, 6.4% of the 636 mainland-listed companies had female CEOs as of October last year. The figure was above the 5.4% average for emerging markets.
However, women only accounted for 13.8% of board directors, which was below the 22.6 % global average.