The Role of ESG Performance in Reducing Occupational Accidents: The Moderating Effect of Board Diversity

This explored the links between ESG performance and occupational accidents, and the effect of board diversity.

211 matched pairs of Taiwanese companies were included (those reporting vs those not reporting accident data), with a total sample of 422 firms.

Extracts:

· They found a “significantly negative association between ESG performance and occupational accidents”

· “This relationship is more pronounced in firms with more diverse boards, suggesting that diverse boards may strengthen the impact of ESG initiatives on workplace safety”

· And while “ESG scores do not significantly reduce the likelihood of occupational accidents, they are associated with a lower frequency of disabling injuries”

· “This suggests that firms with higher ESG scores report fewer disabling injuries per million work hours“

· “Moreover, board diversity strengthens this relationship. Firms with higher ESG scores and more diverse boards report significantly fewer employee injuries”

· “Diverse boards bring broader perspectives, which enable more comprehensive risk assessments, including those related to workplace safety”

· “Female and minority directors often advocate for stronger safety and inclusion policies, thereby enhancing ESG effectiveness in protecting employees”

· “For practitioners, the results suggest that standalone ESG initiatives may not yield substantial benefits unless accompanied by improvements in board quality”

Of course, several limitations were present.

Ref: Lin, Y. C. (2025). The Role of ESG Performance in Reducing Occupational Accidents: The Moderating Effect of Board Diversity. Business Strategy and the Environment.