A new study published by the Bank for International Settlements (BIS), a Swiss-based oversight institution for the world’s central banks, suggests a benefit to hiring women and improving staff gender diversity, not just at the board level, but across the company.
The document found that a 1 percentage point increase in the share of female managers leads to a 0.5% decrease in carbon emissions.
In addition, after the Paris Agreement, firms with greater gender diversity at the management level reduced their CO2 emissions by about 5% more than firms with more male managers.
“We document that this effect is statically significant, also when controlling for institutional differences caused by more patriarchal and hierarchical cultures and religions”, researchers say.
The study also indicates that gender diversity at the managerial level has stronger mitigating effects on climate change if women are also well represented in political institutions and civil society organizations.
Researchers analyzed 2,000 companies in 24 economies from 2009 to 2019. Overall, results show that gender diversity within organizations can have a significant impact in combating climate change.
Source: Does gender diversity in the workplace mitigate climate change?