CEO gender and climate change commitment: The mediating effect of environmental regulation perception

This study delves into the influence of CEO gender on climate change commitment within SMEs in the Mediterranean region. Utilizing data from the sixth wave of the BEEPS1 survey (2018-2020), we explore the mediating role of environmental regulation perception in this context. Our findings align with social role theory, indicating that women demonstrate heightened ecological and communal behavior, driven by their perception of environmental regulations. We reveal a full mediation link within the EU Mediterranean region, where environmental regulation perception explains women's commitment to environmental causes. However, in the EU neighborhood, we identify a direct significant effect of CEO gender on SMEs' engagement with climate change, particularly in terms of controlling CO2 emissions. Our study sheds light on the limited presence of women in top management positions in the Mediterranean region. Additionally, we highlight the scarcity of environmental regulations for SMEs in the EU neighborhood, with the perception of these regulations as barriers hindering proactive climate change strategies. Therefore, governmental authorities need to develop more stringent environmental regulations while taking into account the financial capacities of SMEs. Providing ecological business education before implementing new regulations could also be beneficial. The study carries significant managerial and social implications, emphasizing the necessity of diverse leadership to promote sustainability and underscoring the importance of tailored regulatory initiatives for effective climate action.