Governing for the green: How European board attributes are driving environmental innovation

This study examines the impact of corporate board attributes, namely, gender diversity, independence, size, tenure, and CEO duality, on environmental innovation (EI). The study utilised a large dataset of 13,278 firm-year observations belonging to companies from 24 European countries and covered the period 2010-2021. Drawing from the agency and stakeholder theories, we find that all attributes addressed in this study have a positive impact on EI. These findings enhance our understanding of how businesses manage EI in the real world. Strategic focus is essential for achieving environmental sustainability and fostering innovation in business processes. This study expands our understanding of the role of diverse, long-term, and independent board structures in fostering EI. We can use the insightful results it provides to plan future corporate strategies and policies.