Companies with strong board networks, especially companies with experienced board members, would have better environmental, social and governance (hereinafter: “ESG”) policy outcomes than those with weak board networks, a study from S&P Global Market Intelligence’s Quantamental Research found out

According to the results of the study, corporate boards with members serving on several boards and having a range of professional connections would be the best suited to help with ESG policy. The study stipulates that such board members might be able to use their experience to acquire information. In addition, they would better understand trends in the area, better be able to share that knowledge with their companies and, if serving on multiple boards, have the ability to successfully transfer ESG strategies from one board to another.

Additionally, companies with strong board networks would be more proactive about addressing gender diversity issues at both the C-Suite and board level. The exact opposite would be the case with weak boards networks. Therefore, companies with strong board networks would be twice as likely to have female CEOs compared to firms with weak board networks.