Does the greenness of top management team matter for ESG rating divergence?

ESG rating divergences severely undermine the efficacy of ESG information and distort the resource allocation decisions in capital markets. Identifying a feasible pathway for mitigating ESG rating divergences can promote the healthy development of ESG and extend the depth of related literature. Results based on listed firms in China from 2015 to 2023 indicate that the green background of top management team (hereafter TMT) can significantly mitigate ESG rating divergences. The greenness of TMT affects ESG rating divergences via increasing corporate environmental awareness, green governance performance, and ESG performance. Regulatory intervention, stakeholders’ attention, and resource availability moderate the relationship between the greenness of TMT and ESG rating divergence. The above-mentioned results provide a feasible pathway for mitigating ESG rating divergences, shed lights on the roles of external monitoring and internal governance, and have policy implications for ESG regulations. This dataset contains variable data for all tests conducted in this study.