Do the Characteristics of the Board of Directors Matter for ESG Performance? Evidence from Companies Listed on the MILA Market

This study aims to analyze the influence of board composition on the environmental, social, and governance (ESG) scores of companies listed on the Latin American Integrated Market (MILA, in Spanish). A fixed-effects regression model using panel data with country and year controls was applied. The analysis incorporates governance variables to capture institutional heterogeneity. The sample comprises 56 companies from the Dow Jones Best-in-Class MILA Pacific Alliance Sustainability Index for the period 2019–2021. The results indicate that both the size of the board and the percentage of independent directors are significantly associated with environmental performance, while the percentage of women on the board is positively associated with social and governance performance. The study suggests that companies and regulators should promote more rigorous governance guidelines as a strategic mechanism to improve the sustainability performance of companies included in the Dow Jones MILA Pacific Alliance Index. The findings suggest that stronger governance guidelines may support sustainability performance among companies included in the Dow Jones MILA Pacific Alliance Index.