One standard, two worlds? How multinational companies strategically respond to ESG regulatory asymmetry between the European Union and Brazil

Resumo

Title: One standard, two worlds? How multinational companies strategically respond to ESG regulatory asymmetry between the European Union and Brazil. Author: Paul Tepe Purpose: This study examines how multinational enterprises (MNEs) strategically respond to environmental, social, and governance (ESG) regulatory asymmetry between the European Union (EU) and Brazil. It investigates how firms organize ESG governance, balance global consistency with local adaptation, and integrate ESG requirements into strategy and value-chain practices. Design/methodology/approach: The study adopts a qualitative comparative research design based on semi-structured expert interviews, written expert questionnaires, and document analysis. The empirical material includes eleven expert contributions from companies and consulting firms from both contexts. Findings: The findings show that MNEs respond to ESG regulatory asymmetry through hybrid ESG governance: they use centralized standards for reporting, while adapting implementation to Brazil’s territorial, social, and sector-specific conditions. EU-related ESG requirements also influence Brazilian operations indirectly through headquarters reporting, market access, and value-chain pressures. Research limitations/implications: The qualitative sample limits statistical generalization but provides analytical insight into how ESG regulatory asymmetry is interpreted and managed across firms and sectors. Practical implications: The findings show how firms can navigate divergent ESG regimes by combining global reporting consistency with local implementation capabilities. Originality: The study contributes to ESG strategy and international business literature by examining the EU–Brazil regulatory corridor and showing how MNEs combine global ESG standardization with local implementation in asymmetric institutional environments. Category: Master’s Thesis.

Ficha do documento

Tipo

Dissertação

Ano

2026

Instituição

Fundação Getulio Vargas

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Acesso aberto

Identificador

oai:repositorio.fgv.br:10438/40170

Temas

Governança

Palavras-chave

ESG StrategyESG GovernanceMultinational CorporationsRegulatory AsymmetryGlobal Value ChainsEuropean UnionBrazilEstratégia ESGGovernança ESGCorporações MultinacionaisAssimetria RegulatóriaCadeias Globais de ValorUnião EuropeiaAdministração de empresasGovernança corporativaResponsabilidade social da empresaEmpresas multinacionaisBrasil