The Impact of Board Diversity and Ownership on Environmental Innovation: The Moderating Role of CSR Committees in G20 Firms

ABSTRACT This study investigates the impact of corporate social responsibility (CSR) committees, board cultural diversity (BCD), gender diversity (GD), and ownership structure on environmental innovation among G20 firms from 2005 to 2022. Using 18,941 firm‐year observations and employing ordinary least squares (OLS), fixed effects (FE), random effects (RE), and system generalised method of moments (system GMM) estimations, the study provides robust evidence on governance innovation dynamics. The results reveal that CSR committees significantly enhance environmental innovation, confirming their strategic role in integrating sustainability into corporate governance. Board diversity, both cultural and gender‐based, further strengthens innovation outcomes while foreign ownership exerts a positive influence by promoting global environmental standards. Conversely, government ownership shows a weaker relationship. These findings underscore the importance of governance and ownership mechanisms in fostering eco‐innovation across diverse institutional contexts, offering valuable insights for policymakers, investors, and corporate leaders pursuing sustainability‐oriented strategies.