Does Adopting Sustainable Development Goals Drive Corporate Change? The Case of the Goal on Gender Equality

This study investigates whether firms' adoption of Sustainable Development Goal (SDG) 5 on gender equality leads to measurable improvements in gender diversity within corporate leadership. Using a sample of large European firms from 2016 to 2023, we apply a difference-in-differences methodology to compare gender diversity outcomes between firms that have formally adopted SDG 5 in their sustainability strategies and those that have not. Gender diversity is assessed at three leadership levels: board representation, the C-suite, and senior management. The results indicate that adoption of SDG 5 does not significantly improve gender diversity at any of these levels, suggesting that while firms may publicly adopt SDG 5, this often does not translate into meaningful internal changes or behavioral adherence. Our findings align with the growing literature on “SDG-washing,” where organizations signal support for global goals without implementing substantive reforms. By highlighting the gap between symbolic adoption and actual outcomes, this study contributes to the literature on corporate social responsibility (CSR), gender diversity, and the effectiveness of voluntary sustainability frameworks. Implications for policymakers, investors, and other stakeholders are discussed.