Advancing Corporate Environmental Performance in Emerging Markets: Insights from Board Diversity, Green Innovation and CSR Engagement

This study builds on and extends the literature on corporate governance and environmental sustainability by investigating the moderating roles of green innovation and corporate social responsibility (CSR) engagement in the relationship between board gender diversity and environmental performance (EP). Using a panel data set of 439 manufacturing firms across the Latin American and Caribbean region from 2010 to 2023, we employ the generalised method of moments and the instrumental variable two-stage least square to address endogeneity concerns and ensure robust estimation. The findings reveal that greater gender diversity on corporate boards significantly enhances firms’ EP. Moreover, green innovation not only directly improves EP but also amplifies the positive influence of gender-diverse boards. Higher CSR participation strengthens the association between board gender diversity and EP, demonstrating that proactive CSR activities enable diverse boards to affect environmental outcomes. The data also show regional and industry variability, suggesting contextual variables shape these processes. These results show the synergy between governance structures and strategic sustainability efforts, adding to the conversation on board composition, sustainable innovation and CSR. Policymakers, practitioners and stakeholders seeking inclusive governance and ecologically responsible business behaviour may learn from the research.