Configurations for High‐Quality Environmental Disclosure in China's Dual Carbon Era

ABSTRACT Amid growing global commitments to carbon neutrality and sustainable development, heavy‐polluting enterprises worldwide are undergoing a critical transition toward low‐carbon operations, highlighting the essential role of environmental information disclosure systems in monitoring and guiding corporate environmental performance. This study investigates how environmental regulation, market development, and corporate governance structures interact to shape EID quality among listed chemical and pharmaceutical enterprises in Shanghai, Shenzhen, and Beijing Stock Exchanges. Drawing from institutional and configurational theories, we construct an analytical framework “Environmental Regulation–Market Cultivation–Governance Structure” and apply fuzzy‐set qualitative comparative analysis (fsQCA) and Necessary Condition Analysis (NCA) to assess causal complexity. Our findings identify multiple configurations through which state‐owned and private enterprises achieve high EID performance, including patterns driven by strong certification, profitability, and ownership structure. These results illustrate how governance models reflect deeper institutional tensions between state intervention, market evolution, and corporate autonomy. By advancing a multipath understanding of environmental governance, the study contributes to ongoing debates about climate accountability, regulatory legitimacy, and the political economy of sustainability in emerging economies. Policy implications highlight the need for differentiated, equity‐sensitive governance reforms.