THE IMPACT OF BOARD CHARACTERISTICS ON THE ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE OF FRENCH LISTED COMPANIES

This study investigates the impact of board characteristics on the Environmental, Social, and Governance(ESG) performance of French-listed companies. Grounded in a multi-theoretical framework integrating agency,resource dependence, legitimacy, and critical mass theories, we examine how board size, independence, genderdiversity, and the presence of a sustainability committee influence ESG ratings. Using a panel dataset of 158non-financial companies from the SBF 250 index over the period 2016-2024, we employ fixed-effects regressionmodels with lagged governance variables to address endogeneity concerns. The results reveal that robust anddiverse governance structures are fundamental drivers of superior ESG performance. Specifically, the presenceof a dedicated sustainability committee and a critical mass of at least three female directors are identified asthe most potent and consistent predictors of higher ESG scores. The analysis also confirms the value ofindependent oversight and collective knowledge, with both board independence and larger size demonstratinga significant positive influence on ESG ratings. The findings highlight that in France's distinctive stakeholder-orientedand highly regulated environment, deliberate board composition is essential for translatinggovernance into tangible sustainability outcomes. This study provides actionable insights for corporate boardsand validates the effectiveness of regulatory interventions aimed at enhancing corporate governance.