Dynamic synergy and heterogeneous governance of environmental and financial performance in heavy-polluting industries: evidence from China’s A-share listed companies

This study critically examines the nexus between environmental performance (EP) and financial performance (FP) in China’s heavy-polluting manufacturing, energy, and mining sectors-industries that play a pivotal role in global industrial systems yet face mounting pressure to reconcile economic imperatives with planetary sustainability. Employing a multi-methodological analytical framework, the research reveals systemic heterogeneities in EP–FP interactions, thereby challenging conventional trade-off narratives. Qualitative evidence highlights clear sectoral distinctions: while manufacturing and mining exhibit persistent tensions in which short-term financial priorities often marginalize environmental stewardship, the energy sector shows emerging synergies, suggesting that strategic EP investments can support long-term value creation amid global energy transitions. These findings enrich interdisciplinary debates on sustainable industrialization by illuminating how regulatory regimes, technological pathways, and stakeholder expectations shape context-specific EP–FP dynamics. The study’s nuanced understanding of sectoral divergence provides practical implications for policymakers and corporate leaders navigating green transitions, underscoring the need for tailored governance strategies that reflect the distinctive operational logics of different industrial ecosystems. By reframing corporate sustainability as a dynamic and context-contingent challenge, this research underscores the urgency of rethinking industrial development paradigms through a heterodox lens-an essential step toward aligning global climate objectives with equitable socioeconomic progress.