This paper explores the relationship between board gender diversity and corporate environmental strategy and financial performance of firms. It uses Bloomberg ESG data from over 3,000 firms in different countries between 2011 and 2016. Based on 12 corporate environmental policies, including pollution reduction, energy efficiency, and sustainable development, the empirical evidence shows that women on boards contribute to promoting proactive environmental strategies, particularly the pollution prevention strategy, leading to competitive advantages in short-term and long-term financial performance.

The study shows that corporates’ environmental strategy should integrate gender diversity in their top management. In this regard, the study indicates that organizations should focus on bringing women to their boards to promote proactive environmental strategies.

The findings of this study can be a useful guide to business practitioners, corporate decision-makers, investors, and policy-makers concerning the effects of gender diversity in corporate environmental management issues. In this direction, organisations should focus on introducing further diversity in their top management to drive a sustainable development strategy and promote long-term financial performance.