Banks with more women in their boardrooms lend less to big polluting companies, according to new research by the European Central Bank.
“Female corporate directors and women in general are more likely to care about long-term societal issues, including climate change.”
The study is a world first, regarding the influences of gender on boardroom banks’ capability to “green” the economy, leading to evidence that a greater female representation in the boardroom contributes to advancing the fight against climate change.
The study also found that the “green” effect of female board members is stronger in countries with more female climate-oriented politicians.
Exploring the potential influence of women in the boardroom on banks’ lending strategies is a critical step towards fighting climate change. The study noted several other previous studies which found that women were more community-minded, altruistic and caring than men.
Female directors have a stronger orientation toward corporate social responsibility (CSR), compared to male directors who tend to be more focused on economic performance.