Are Women-led Firms Greener?

An analysis of data collected in the 2009 UC Davis Study of California Women Business Leaders suggests this may be so. The Study evaluated the presence of women at the very top of the 400 largest publicly held corporations in California. In an otherwise discouraging report of their minority status in the executive suite, this intriguing data point stood out.

To test the hypothesis that women are more apt to pursue eco-sustainable business practices, the UC Davis Study authors drew on information from two sources: Census data from their own study and a report by KLD Research & Analytics, Inc. and Newsweek Magazine which ranked the largest 500 U.S. firms on the extent to which they pursue eco-friendly policies. 62 of California’s largest 400 firms in 2009 were included on the list.

Here’s a summary of their findings: “Firms that had no women directors or executives had the poorest environmental performance. Firms that had both women managers and directors had the best environmental performance. Firms that had at least one woman director (but no women executives), and firms that had at least one woman executive (but no women directors) had environmental records in between these two extremes.”

Although the survey sample was small and it didn't evaluate for a correlation between better environmental performance and higher revenue, the results are still intriguing. Especially in California where “green” jobs are on the rise - up by 35.9% since 1995 according to a new study by public policy group, Next 10. The total number of jobs grew by only 13.3% in the same period. The study defines green jobs as those that develop new energy sources, save energy, conserve natural resources or reduce pollution.

If it’s true that women-led firms are greener as the UC Davis findings suggest, it will be a great travesty if women are as under-represented in the executive ranks of the growing clean-tech segment as they are in other industries.