This study critically examines the state of environmental transparency among China's heavily polluting listed companies. Grounded in institutional theory, we examine how corporate disclosure strategies are shaped by a complex interplay of government policies, market pressures, and inherent corporate traits. The results indicate significant differences in disclosure practices across sectors, influenced by factors such as carbon market pressures on energy sector companies and the intricacies of supply chain dynamics in manufacturing. While the relationship between environmental transparency and financial performance is not monolithic, encompassing short-term costs and potential long-term gains mediated by green finance and investor sentiment. The unique institutional setting in China offers unique challenges and corporate responses. We find that the pollution haven hypothesis is not easily amenable to change by foreign investment. And that the levels of regional development have a non-linear relationship with disclosure quality, often compounded by 'information overload' in developed regions and by the nature of campaign-style governance characteristics. This paper argues that traditional measurement paradigms, often crafted within Western settings, have trouble effectively capturing China's 'policy-responsive' disclosures, leading to a gap between nominal compliance and substantive environmental action. Looking forward, we posit that emerging technologies like blockchain and AI hold the potential to shift the paradigm from unverifiable corporate statements to traceable, fact-based accountability, offering a pathway to resolving the deep-seated issue of greenwashing and fostering genuine environmental responsibility.