From labeling to action: Does green manufacturing certification drive corporate sustainable development?

China's economic trajectory has shifted from prioritizing rapid growth toward emphasizing quality, efficiency, and sustainability, making corporate sustainable development (CSD) an increasingly critical imperative. Yet how government-guided environmental regulation, such as China's green manufacturing certification (GMC), shapes CSD remains insufficiently understood. Exploiting the implementation of the GMC program, this study examines the relationship between GMC and CSD among Chinese listed manufacturing firms over 2009-2024. Employing a staggered difference-in-differences design, we find that GMC is significantly associated with improved CSD. Further analyses indicate that GMC is linked to eased financing constraints, stimulated green innovation, and enhanced media attention. The positive association between GMC and CSD is particularly strong among larger firms and firms operating in less competitive industries. This study provides empirical support for the effectiveness of such incentive-based policy instruments, offering practical implications for policymakers seeking to advance firm-level sustainability.