A new study by Murdoch University, which explored how the generational composition of boardrooms relates to sustainability performance, has suggested that baby boomers, i.e. those born between 1946 and 1964, play a distinct role in shaping sustainability decisions at board level.
The study, Does Older Mean Better? Analyses of Boards’ Influence on Sustainability Performance, which was published in Business Strategy and the Environment, analysed data from more than 2,000 publicly-listed firms in the United States, with board members grouped into four different cohorts: traditionalists, i.e. those born before 1946, baby boomers, Generation X, born between 1965 and 1981, and millennials, born between 1982 and 2000.
The sustainability performance of said firms was then analysed using ESG scores from LSEG, an internationally-recognised rating system.
Sustainability performance
As it noted, boards that boast high baby boomer representation tended to record a stronger sustainability performance, whole boards dominated by traditionalists, Generation X, or millennials showed a lower performance.
“If companies want to strengthen their sustainability performance, having baby boomers in the boardroom is a smart move,” commented the study’s lead author, Augustine Donkor of Murdoch Business School. “Boomers bring long-term vision and a collaborative mindset that aligns with environmental and social goals.
“Our research shows that their presence can tip the balance toward decisions which protect both the planet and the company’s long-term success.”
‘Mix of generations’
This is not to say that ‘older is better’, however, with traditionalists – the oldest cohort in the study – more likely to push back against sustainability initiatives. In addition, Generation X and millennials were more likely to focus on short-term targets and personal career growth over environmental and social commitments.
“Ultimately, a mix of generations adds value, but our research shows baby boomers are essential for steering companies toward lasting environmental and social impact,” Donkor added. Read more here and here.
