This study analyses the impact of boardroom gender diversity on Environmental, Social and Governance (ESG) disclosure practices in European listed companies. The data was collected from 1,392 companies from 21 European Union (EU) countries for six years (2014-2019), reveals a positive association between women on boards and higher ESG transparency levels at the overall and specific level.

The study uses various panel data models on an extended sample of companies from 21 EU countries. These models control for the individual country’s effects and other corporate governance features (board size, attendance, independence) and firm characteristics (size, profitability, and leverage).

Policymakers and regulators should consider the study’s evidence as a stimulus to take strategic actions and continue reforming Europe’s corporate sector to foster gender equality and balance in decision-making positions. Creating a diverse and heterogeneous board of directors can support implementing a “sustainable corporate governance” which is recently outlined by the European Commission.

Recent regulatory changes in Europe have increased demands for non-financial disclosure and gender diversity on decision-making positions. The EU Directive 2014/95/EU requires companies with over 500 employees to disclose their ESG information regularly. The study highlights that the ESG information has vital significance in meeting multiple stakeholders’ expectations of corporate social responsibility (CSR) metrics.

This study provides empirical evidence supporting that having more women on boards positively impacts a company’s ESG transparency and improves its sustainability practices. Furthermore, creating a diverse board of directors may support the EU’s “sustainable corporate governance” strategy. The study’s findings can contribute to enhancing the practical and theoretical understanding of the pivotal role that gender diversity may exert in improving corporate transparency and accountability behaviours about non-financial issues.