The Biodiversity Paradox in Emerging Markets: Are African Multinational Enterprises Truly Committed to Environmental Preservation?

Research on biodiversity has centred on multinational enterprises (MNEs) from Triad economies. Although African MNEs command a small share of global output, they operate in biodiversity-rich sectors. This study examines how internal governance and national institutions influence biodiversity commitment in African MNEs. Using the Upper Echelons and Institutional theories, the study sought to understand the extent to which board independence and board gender diversity influenced firm-level biodiversity commitment, and whether the presence of a sustainability committee and institutional quality enhanced that commitment. We analysed a panel dataset of 247 listed MNEs from Nigeria, Egypt, South Africa, Kenya and Ghana between 2010 and 2023. Biodiversity commitment is measured with four indicators covering commitment, due diligence, impact assessment and risk assessment. We find that board independence is positively associated with firms' biodiversity commitments, and greater female representation on boards shows a similar pattern across both the composite index and its component indicators. In contrast, the presence of sustainability or governance committees exhibits a weaker negative association with biodiversity commitment; however, this relationship turns positive where regulatory quality is stronger. We identify specific governance attributes that shape biodiversity outcomes and highlight the institutional conditions under which committees operate as substantive rather than symbolic controls. Our findings show that board composition, regulatory quality, and investor attention to substance beyond disclosure carry important implications for future research.