This research paper aims to study the mediating role of sustainable environmental management practices (SEMPs) in the relationship between internal and external stakeholder pressure (SP) and environmental performance (EP) in red-category industries in India. We have looked up the literature on SEMPs, SP, and EP that was most frequently cited and may impact this relationship. The sample size was 169 red-category industries in India and structural equation modeling (SEM) was used for data analysis. Our research is one of the few studies investigating the mediating role of SEMPs on the relationship between internal and external SP and EP of polluting industries in the Indian context. This study will focus not only on the manufacturing sector but also on the service sector. Thus, our research work significantly contributes to the literature and aids in the decision- making process of managers, experts, and government personnel engaged in this field.