Grounded in the strategic orientation of China’s “double carbon” goal, the manufacturing industry urgently needs to transform environmental regulatory pressures into drivers of green innovation in order to build a sustainable and credible corporate green image. Drawing upon institutional theory and the resource-based view from a stakeholder perspective, this study constructs a logical framework of “environmental regulation→green innovation→green image.” Using panel data from listed firms in China’s heavily polluting manufacturing sectors between 2014 and 2021, the study finds the following: 1) Both command-and-control and market-based environmental regulations enhance firms’ green image, with the former exerting a stronger influence on government-perceived green image, and the latter having a more pronounced effect on non-government-perceived green image; these effects also exhibit non-linear characteristics; 2) Green product, process, and organizational innovation serve as key mediating mechanisms linking environmental regulation and green image; and 3) Ethical leadership positively moderates the impact of environmental regulation on green image, while environmental ethics culture and green human capital further enhance the effect of environmental regulation on green innovation. Overall, this study reveals the internal mechanisms and boundary conditions through which environmental regulation shapes the corporate green image, offering theoretical insights for promoting firms’proactive engagement in green and low-carbon innovations in response to China’s carbon neutrality goals.