From Education to Sustainability: Can STEM CEOs Drive ESG Performance? Evidence from Top-Sustainable Companies

Considered as innovation-oriented, this research is conducted to examine the does the STEM-educated CEOs drive better ESG performance. Using OLS regression, this research is conducted using listed companies assessed their ESG performance on Sustainalytics on the period of 2022 identified as “top sustainable companies” encompassing 1,039 observations. The findings of this research reveal that STEM-educated CEOs is negatively associate with ESG performance in top sustainable companies. Robustness analysis also conducted to prevent endogeneity issues. This study introduces the novel idea of strategic trade-offs in ESG leadership. While STEM leaders drive innovation, their focus might lead to underinvestment in other crucial ESG aspects within already sustainable firms. In addition on offering contribution of governance and ESG research, this research bring new insight in selecting CEOs for top ESG companies which should consider a balanced skillset beyond technological solutions.