Board Climate Expertise and the Sustainability Performance of Nigerian Listed Firms

This study investigates the relationship between board climate expertise and sustainability performance among 148 listed firms on the Nigerian Exchange Group over the period 2011–2025. Drawing on resource dependence theory, upper echelons theory, and stakeholder theory, the paper argues that directors possessing specialized knowledge in climate science, environmental management, and sustainability governance constitute a critical strategic resource that enhances firm-level sustainability outcomes. Using an ex-post facto research design and panel regression analysis, the study models sustainability performance as a function of board climate expertise while controlling for firm size, industry type, leverage, profitability, and growth opportunities. The findings reveal that board climate expertise exerts a positive and statistically significant influence on sustainability performance. Specifically, firms whose boards include directors with demonstrable climate-related qualifications, experience, or training report higher environmental, social, and governance (ESG) disclosure scores and stronger sustainability outcomes. The results remain robust across fixed effects, random effects, and generalized method of moments specifications, as well as after accounting for potential endogeneity through instrumental variable approaches. Among the control variables, firm size and profitability display positive associations with sustainability performance, while leverage exhibits a negative relationship. Industry type moderates the expertise-performance nexus, with firms in environmentally sensitive sectors deriving greater benefits from climate-competent boards. Growth opportunities show mixed results depending on model specification. This study contributes to the growing body of literature on board competence and corporate sustainability by providing the first large-scale, longitudinal evidence from the Nigerian context. The paper offers practical implications for regulators, investors, and corporate governance reformers seeking to embed climate intelligence at the apex of organizational decision-making in emerging markets.