Board That Transforms: Relationship Between Board Structure and Environmental, Social, and Governance Performance in <scp>BRICS</scp> Countries

ABSTRACT The purpose of this study is to examine the relationship between board composition characteristics and ESG performance in companies from BRICS countries, and to assess how sector sensitivity moderates this relationship. A sample of 2045 BRICS companies was examined using panel data regression with random effects and logistic regression. Analyses were also performed by separating companies into sensitive and non‐sensitive sectors. Results show that larger, independent, qualified, and gender‐diverse boards—especially with higher female presence—improve ESG performance. CEO duality, however, negatively affects the adoption of sustainable practices. Interaction effects show that sector sensitivity amplifies the positive impact of board size and independence on ESG, while intensifying the negative effect of CEO duality. In contrast, skills and gender‐related attributes display weak or inconsistent moderation. Overall, the influence of board characteristics on ESG varies meaningfully across sectoral contexts. This study contributes by comparing companies from sensitive and non‐sensitive sectors within the BRICS, highlighting how sectoral pressures shape ESG dynamics. It offers insights for developing sector‐specific governance strategies to meet varying ESG demands.