This study examines strategic corporate environmentalism in a managerial delegation contract within a product differentiated duopoly framework when eco-firms exist and provide abatement goods in an eco-industry. We construct an incentive subsidy scheme on the procurement of abatement goods, which induces polluting firms’ profitable environmental concerns to be socially desirable. It shows that given a well-designed government regulation on the voluntary initiative of self-regulation, welfare-improving alignment between private and social incentives is feasible and attainable.