We find robust evidence that when firms increase their imports, their own emissions fall with a corresponding rise in supplier generated emissions. Several quasi-natural experiments further support this pivotal evidence that U.S. firms outsource some of their pollutions abroad. We show that firms, management, and directors with desires to maintain high environmental standings and environmentally-conscious customers and investors play a role in corporate environmental policies. Finally, firms with more imported emissions tend to have higher reputational risks and larger future stock returns but are less incentivized to develop clean technologies.