The trade-off between economic growth and environmental pollution is a significant challenge for many developing countries. The emergence of digital technology is reshaping economic development and innovation systems, making it crucial to integrate digital technology and green enterprise innovation. However, local government environmental regulations can impact sustainable green development of enterprises. This study constructs a model of a three-party evolutionary game between the government, digital consulting institutions, and enterprises to explore external incentives for promoting sustainable green development among enterprises. Findings suggest that different instruments of environmental regulation have varying effects on sustainable green development of enterprises. High-intensity command-and-control, middle-intensity market-inspired, low-intensity public participation-based, and low-intensity digital technology subsidies are the optimal combination of strategies that can drive sustainable green development among enterprises more quickly and effectively in the long term. This paper proposes an optimal strategy for sustainable green development of enterprises under the game between local governments, enterprises, and digital consulting institutions from a multi-party evolutionary game perspective, providing a reference for policy development plans and theories of sustainable development for China’s double carbon target.