This study examines the moderating role of the environmental management team (EMT) in the association between board characteristics and sustainability performance in companies in the Gulf Cooperation Council (GCC) region. It explores how board features such as size (BSize), diversity (BDIV), independence (BI), skills (Bskill) and duality (CEOD) influence ESG performance (ESG), and how EMT enhances or mitigates these effects.
This study adopts a quantitative approach using a dataset of 91 GCC companies covering ten years (2014–2023). Correlation and regression analyses were conducted to evaluate the associations among board characteristics, EMT and ESG performance. STATA was used to analyze data extracted from the Thomson Reuters Eikon database.
EMT significantly strengthens the positive influence of BDIV and independence on ESG but shows varied effects with other board attributes. Larger boards and overreliance on skilled boards dilute the effectiveness of EMT. These findings highlight the nuanced role of the EMT in governance dynamics and sustainability outcomes.
This study highlights the importance of EMTs in enhancing sustainability performance in GCC companies. Firms should prioritise board diversity and independence while balancing board size and skills to maximize EMT effectiveness. Policymakers can develop frameworks promoting EMT integration and governance reforms, aligning corporate strategies with global ESG standards for long-term environmental and social impact.
The study promotes the integration of governance and sustainability in the GCC, fostering social accountability and environmental stewardship. It encourages companies to adopt diverse and independent boards, creating broader societal benefits by aligning corporate strategies with global sustainability standards.
This study is among the first to explore the moderating influence of EMT on the board–ESG relationship within the GCC context, bridging gaps in the existing literature. It offers practical insights into how board composition and environmental governance structures synergistically drive sustainability performance.
