ABSTRACT This study examines the impact of board sustainability committees and their composition on environmental performance initiatives, as well as the underlying dimensions of these initiatives. Grounded in agency theory, resource dependence theory, and stakeholder theory, this study analyzes a panel of European firms from 2014 to 2022 using panel regression models with multiple fixed effects. The findings reveal that the presence of a board‐level sustainability committee significantly enhances overall environmental performance initiatives, as well as their specific dimensions. Moreover, committee characteristics—specifically size, tenure, and gender diversity—are positively associated with improved environmental performance, whereas committee independence is negatively related to environmental outcomes. The relationship is particularly pronounced in firms operating in salient industries with strong governance quality and high ESG scores. The results are robust across multiple specifications, including the Two‐Step System Generalized Method of Moments (GMM) and the Two‐Stage Least Squares (2SLS) method, and offer meaningful implications for both researchers and practitioners. The study offers valuable insights for board members, managers, investors, policymakers, and regulators seeking to promote sustainable practices and achieve better environmental outcomes.
Javaid et al. (2026) studied this question.