- Research by GIM and XIM University examines how board diversity shapes ESG disclosures under climate-related risks
A joint study by researchers from Goa Institute of Management (GIM) and XIM University has examined the relationship between board diversity and corporate responses to climate-related risks.
The study, published in Finance Research Letters, analysed data from 9,128 firms across 91 countries between 2015 and 2023. It found that companies do not respond uniformly to climate risks and often adjust Environmental, Social and Governance (ESG) disclosures depending on the type and intensity of risk faced.
The research was conducted by Purba Bhattacherjee, Assistant Professor, Finance and Accounting Area, Goa Institute of Management, and Sibanjan Mishra, XIM University.
According to the study, firms with greater gender representation on boards showed stronger engagement with ESG disclosures when responding to long-term transition risks linked to market shifts towards decarbonisation and changing regulatory expectations.
The researchers also found that during short-term physical disruptions, such as extreme weather events, firms with gender-diverse boards were more likely to prioritise operational continuity over expanded sustainability disclosures.
The study noted that board diversity appeared to have a stronger influence in countries with weaker governance structures, where institutional oversight and enforcement mechanisms were less developed.
Purba Bhattacherjee, Assistant Professor, Finance and Accounting Area, Goa Institute of Management, said climate risks often require companies to balance resilience measures with disclosure priorities.
Sibanjan Mishra, XIM University, said the findings indicate that ESG reporting may vary according to the nature of climate-related risks rather than follow a fixed pattern.
The study contributes to broader discussions on climate governance by distinguishing between gradual transition risks and sudden physical risks, while examining how board composition can shape corporate decision-making under uncertainty.
