Board busyness and biodiversity disclosure practices: a global evidence

Purpose This study aims to explore the relationship between board busyness and corporate biodiversity performance, examining variations across high- and low-income countries, as well as firm size. Design/methodology/approach Using a data set drawn from the Eikon database, two-stage least squares estimation was applied in the analysis using data from 52 countries between 2010 and 2023. Findings The results reveal a positive and statistically significant relationship between busier boards and enhanced biodiversity outcomes, with notable variations between high- and low-income countries. In high-income countries, busy directors leverage their networks, expertise and governance structures to drive biodiversity initiatives effectively. Due to limited resources and governance frameworks, this relationship is weaker in low-income countries. Furthermore, firm size plays a significant moderating role, as larger firms benefit more from busier directors regarding biodiversity performance than smaller firms. Other corporate governance factors such as board gender, skill diversity and board size also significantly enhance biodiversity practices. Research limitations/implications Based on the resource-based view and institutional theories, this study contributes to the corporate governance and sustainability literature by demonstrating how board busyness influences biodiversity performance through knowledge spillovers and institutional adaptation, showing that busy directors bring valuable external knowledge that enhances biodiversity performance. It also expands the corporate governance literature by emphasizing the importance of board characteristics for environmental performance. Practical implications In line with the United Nations Sustainable Development Goals (SDGs), particularly SDG 15 (Life on land) and SDG 13 (Climate action), the findings underscore the importance of board composition in fostering environmentally sustainable business practices. This study demonstrates how firms can leverage board expertise and director networks to align with global biodiversity conservation goals, thus reinforcing the role of corporate governance in achieving long-term ecological sustainability. Firms, especially in high-income countries, can benefit from appointing busy directors who bring cross-sector experience to biodiversity management. However, there is a need for caution in low-income settings where resources and governance structures may limit the impact of busyness. Policymakers should consider strengthening corporate governance frameworks in low-income countries to enhance the positive effects of busy boards on biodiversity performance. Social implications It promotes a better biodiversity management through strong corporate governance, which helps preserve ecosystems, supports rural and Indigenous communities and enhances social well-being. It highlights the importance of equitable resource distribution and governance, encouraging policymakers to strengthen frameworks in low-income regions. Originality/value This research highlights the importance of corporate governance in addressing biodiversity concerns and suggests that the effectiveness of busy directors varies by economic and firm context. To the best of the authors’ knowledge, this research is also the first to have examined across countries.