Female leadership, gender boards and environmental innovation: Comprehensive evidence from the global energy sector

Is female leadership greener? This study explores how female leadership influences environmental innovation in the energy sector, which is crucial for addressing sustainability challenges related to GHG emissions. Building on upper echelons theory, gender socialization, and contingency theories, we argue that female CEOs, especially when supported by gender-diverse boards, promote environmental innovation through collaborative leadership and a long-term strategic orientation. Using a dataset of 4510 firm-year observations from 410 energy firms across 31 countries (2012?2022), we apply advanced econometric techniques to address endogeneity and enhance causal inference. Our findings indicate that firms led by female CEOs exhibit greater environmental innovation, particularly when their boards reflect gender diversity. This relationship is most pronounced in developed economies, while it also emerges in developing markets. These results underscore the importance of inclusive leadership in achieving sustainability goals and provide guidance for aligning governance structures with environmental innovation in high-emission sectors.