LGBTQ+ Workplace Inclusion and Corporate Environmental Performance

This study examines the impact of LGBTQ+ workplace inclusion on corporate environmental performance, with a focus on the mediating role of environmental innovation. Drawing on 6,419 firm-year observations from 898 U.S. firms between 2010 and 2023, we measure LGBTQ+ workplace inclusion using the Human Rights Campaign’s Corporate Equality Index. Our findings show that firms with stronger LGBTQ+ inclusion exhibit higher environmental performance scores and greater renewable energy consumption. We further find that this relationship is partially mediated by environmental innovation, indicating that LGBTQ+ inclusive workplace practices enhance environmental outcomes by fostering innovation. To strengthen causal inference, we implement a quasi-natural experiment based on the staggered legalization of same-sex marriage across states. Results reveal that firms headquartered in states that recognized same-sex marriage prior to the Obergefell v. Hodges ruling demonstrate superior environmental performance. These findings are robust across various identification strategies and estimation methods.