Nexus Between Board Diversity and Environmental, Social, Governance ( <scp>ESG</scp> ) Performance and Disclosure: A Systematic Literature Review

ABSTRACT Board diversity plays a key role in shaping a firm's approach and commitment towards environmental, social, and governance (ESG). This is because diversity within corporate boards introduces a wide range of values, experiences, and perspectives which ultimately shape a firm's strategic orientation and compliance with stakeholders' expectations, regulatory requirements, and societal demands. Several studies have investigated the relationship between various dimensions of board diversity and ESG performance and reporting. However, the literature remains fragmented and inconclusive. Therefore, this study aims to integrate and synthesize the fragmented findings of the recent studies (i.e., published during 2015–2024) using a systematic literature review (SLR). In addition, the study develops a holistic typology of the various dimensions of board diversity that have been linked in the literature with ESG performance and ESG disclosures respectively, and how each dimension shapes ESG performance and discourse practices within firms. Furthermore, the study highlights the concentrations within the literature and the relatively unexplored dimensions of board diversity that require further exploration.