The presence of “baby boomers,” the generation born between 1946 and 1964, in boards of directors during the period of rapid post-war demographic growth, can significantly improve companies’ performance on sustainability. The conclusion comes from a new study by Murdoch University in Western Australia, which analyzed the relationship between the generational composition of corporate leadership and the environmental, social, and governance results of companies.
The work, titled Does Older Mean Better? Analyses of Boards’ Influence on Sustainability Performance, evaluated data from 2,162 U.S.-listed companies, cross-referencing the ages of board members with international sustainability ratings (ESG), assigned by LSEG (formerly Refinitiv).
The researchers analyzed four generations: the traditionalists (born before 1946), the “baby boomers” (1946–1964), Generation X (1965–1981), and the millennials (1982–2000). The results show that companies with “baby boomers” on their boards performed, on average, better in sustainability, while the other generations showed a smaller positive impact.
According to the study, the “baby boomers” stand out for combining extensive professional experience with a long-term vision and a more consensus-oriented approach to decision-making. This combination, according to the authors, favors choices that reconcile economic objectives with environmental and social concerns.
“If companies want to strengthen their sustainability performance, including ‘baby boomers’ on the board of directors is a sound decision,” says Augustine Donkor, a researcher at the Murdoch Business School and the study’s lead author. “This generation tends to value long-term impact and collaboration, which translates into decisions more aligned with environmental protection and the future resilience of companies.”
The study also reveals that the influence of each generation depends on the number of representatives on the board. While the “baby boomers” and traditionalists require at least three members to exert significant influence, Generation X needs two and the millennials only one.
Contrary to some common assumptions, the authors emphasize that age alone does not guarantee better sustainability results. “Traditionalists, despite their experience, tend to resist change more, which can slow advances in this area,” explains Donkor. On the other hand, younger generations, though they bring dynamism and technological skills, tend to prioritize short-term objectives and individual advancement, which does not always translate into durable environmental or social commitments.
The researchers argue that boards with generational diversity are, in general, more robust, but they underline the central role of the “baby boomers.” “A combination of generations adds value, but our data show that the baby boomers are particularly important in guiding companies toward a lasting environmental and social impact,” concludes the author.
The study was published in the scientific journal Business Strategy and the Environment.
