We use mandatory ESG disclosure regulation worldwide as a quasi-natural experiment to investigate the effect of ESG disclosure on corporate tax avoidance. Utilizing a difference-indifference analysis on a sample of firms from 41 countries, we find significant reductions in tax avoidance after ESG disclosure mandates. The decrease in tax avoidance following the mandate is greater under more opaque information environments, in countries with weaker legal, environmental, and social institutions, and under firm- and country-level characteristics that cater less to stakeholders. Moreover, consistent with the prediction that post-mandate tax avoidance is not directed to expropriate stakeholders, we find that firms with greater levels of tax avoidance following the regulation benefit from higher valuation and lower cost of equity capital.