ABSTRACT This study investigates the connection between the governance mechanism, the industry performance, and the amount of carbon dioxide emissions (lCO 2 ) based on the 302 non‐financial companies listed on the PSX‐100 Index over 13 years (2010–2022). The analysis uses Two‐Stage Least Squares (2SLS) technique, and Generalized Method of Moments (GMM) is used to make it robust. The findings reveal that the negative influence of firm size (FS) is substantial on the emissions, which can be regarded as a major indication that the larger the firm, the less it emits because of the economies of scale and availability of cleaner technologies. CEO duality (CEO) is also associated with a negative effect on emissions, which allows concluding that unified leadership can contribute to improving environmental decisions. Conversely, board gender diversity (BG) is positively correlated with an increase in emissions, which could be as result of poor governance. The ownership concentration (lOWN) and board size (BS) are both found to be lessening the emissions, indicating that ownership concentration and larger boards are essential in ensuring environmental sustainability. The empirical findings reveal a positive relationship between the emissions and the board meetings (BM). Also, the performance (ROA) of the firms is related negatively with emissions. Such results indicate that the governance systems and profitability are central to decreasing carbon emission. Policy suggestions involve enhancement of the governance laws to facilitate sustainability in Pakistan.
Ullah et al. (Mon,) studied this question.