Gender Inequality and ESG performance: A global analysis of governance, environmental, and social outcomes in 97 countries

Abstract

This study examines the systemic impact of gender inequality on national environmental, social, and governance (ESG) performance across 97 countries from 1995 to 2020. Drawing on institutional theory, the analysis highlights how gender disparities in leadership, access to resources, and decision-making processes hinder sustainable development. Employing fixed-effects regressions, robustness checks, and alternative empirical models, the findings reveal that higher gender inequality significantly reduces ESG performance, with the strongest effects observed in the governance dimension. Heterogeneity analyses show that the impact varies by income level, region, and political regime, with middle-income countries, Latin America, and democracies experiencing the most pronounced effects. Additional covariates, such as income inequality and dependency ratios, confirm the robustness of the results and highlight the interplay between gender disparities and broader socio-economic factors. The study underscores that addressing gender inequality is critical for achieving sustainability goals and provides tailored policy recommendations, including enhancing women's participation in leadership, integrating gender equity into governance reforms, and adopting long-term, context-specific strategies. By centering gender equity in ESG frameworks, this research advances the understanding of sustainability as a multidimensional challenge that requires systemic change and inclusive governance. These findings contribute to global efforts to build resilient and equitable pathways to sustainable development.