Divergent Paths in ESG Regulation: A Comparative Analysis of the Regulatory Frameworks in Europe and China with Evidence from the LVMH Case

In today’s global economy, Environmental, Social and Governance (ESG) disclosure has become a fundamental requirement for corporations, driven by increasing pressure from investors, regulators and consumers. Companies are expected to demonstrate not only financial performance but also their impact on the environment, society, and governance, communicating how they address climate, resources, human rights, diversity, and ethics while shaping reputation, investor confidence and long-term resilience. Adopting an international perspective, this thesis examines how ESG disclosure influences corporate transparency and accountability, aiming to answer: How do different regulatory frameworks affect ESG disclosure, and how do multinational companies adapt? To explore this question, the work compares the European and Chinese contexts, two regions moving toward enhanced sustainability reporting, yet shaped by distinct governance models. Specifically, it analyzes mandatory and voluntary approaches, data accessibility, and the growing role of digitalization. Furthermore, the study evaluates ESG audit mechanisms, while addressing regional differences in greenwashing practices. The analysis also includes a case study of LVMH (Moët Hennessy Louis Vuitton), a French multinational and world’s leading luxury group, illustrating how the company communicates its sustainability strategy in Europe and China, balancing a coherent global vision with adaptation to local regulations and market expectations. The research aims to demonstrate that, although corporate sustainability is increasingly moving toward global standardisation, substantial practical differences still persist in ESG disclosure practices across regions.