Journal of Basic and Applied Research International

With the deepening of the concept of green finance, ESG (Environmental, Social, and Governance) has become a key topic in capital markets and a focal point in corporate and securities law globally. ESG represents a comprehensive framework for evaluating a company’s performance in environmental sustainability, social responsibility, and corporate governance effectiveness. It reflects how businesses balance profit generation with their duties to the environment, society, and internal governance systems. China’s commercial legislation and practice are also paying increasing attention to this issue at various levels. From a comparative law perspective, the legislative and regulatory approaches of the EU and the US differ, but both show a trend toward unification. Although the US has yet to establish a unified and comprehensive mandatory ESG disclosure framework at the federal level, regulators and some states are actively advancing relevant legislation. In contrast, Europe has a more mature and comprehensive ESG disclosure regulatory regime, demonstrating strong legislative momentum and increasingly detailed requirements in both legislation and judicial practice. This also reflects the “strong regulation” characteristic of commercial law under the civil law system. Despite global advancements, there is still a lack of clear, comparative analysis on how China’s evolving ESG regulatory framework aligns with international trends. China’s evolving commercial law has responded positively to ESG information disclosure regulation. However, current regulations governing ESG disclosure by listed companies in China face several issues: lack of uniform disclosure standards, inconsistent disclosure quality, insufficient coordination among regulatory bodies, and a lack of effective oversight and incentive mechanisms. To improve the regulatory system, this paper proposes building a comprehensive institutional framework, promoting the interaction between hard and soft laws, and designing collaborative mechanisms. Specifically, a multi-department joint regulatory mechanism should be established, third-party verification institutions should be cultivated, and industry associations’ self-regulatory roles should be fully utilized. These measures aim to enhance the quality and transparency of ESG disclosures by listed companies, which is of great significance for promoting sustainable development and ensuring the healthy and stable growth of the capital market. Only in this way can evolving commercial law better meet the demands of social development. This paper adopts a comparative law approach and draws from judicial practice to explore possible solutions.