The Impact of Female Leadership on ESG Performances in Chinese Listed Companies

The present study investigates the influence of female leadership on environmental, social, and governance (ESG) performance, specifically focusing on the roles of female directors, senior executives, and supervisors. To this end, data from 2018-2022 of Chinese listed companies were used. The main results of the empirical analysis are as follows. A higher proportion of women in leadership positions is positively associated with improved ESG performance. This performance suggests that female leaders prioritize environmental aspects such as energy consumption, emissions, and waste generation, thereby driving companies to adopt more environmentally friendly measures to enhance their environmental reputation. Moreover, female leaders' empathy helps foster a positive working atmosphere, promoting teamwork and coordination which positively influences the enterprise’s social goals. Additionally, female leadership contributes to risk reduction and avoidance while providing comprehensive perspectives and suggestions that enhance board decision-making quality, thereby positively impacting governance goals. At present, while the number of women leaders is gradually increasing, women's leadership in Chinese companies is relatively low, and stereotypes about women still abound in some companies, which leads some to question their leadership styles and strategic choices, thus limiting their performance in terms of ESG performance. Therefore, governments and companies should increase institutional and policy support for women's career development.