ESG ratings, serving as a holistic evaluation of companies across environmental, social, and corporate governance dimensions, play a crucial role in mitigating information asymmetry between enterprises and investors, thereby guiding investment decisions and regulatory practices. However, the lack of standardization among rating agencies has resulted in substantial divergence in ESG ratings across firms, prompting inquiries into the implications of this divergence. This paper empirically investigates the impact of ESG rating divergence on corporate excess cash holdings, employing a sample of Chinese A-share listed companies spanning from 2015 to 2021. Our findings reveal a significant positive relationship between ESG rating divergence and firms' excess cash holdings, a conclusion robust to various sensitivity analyses. Heterogeneity analyses further demonstrate that the effect of ESG rating divergence on excess cash holdings is amplified under conditions of cross-ownership, heightened media scrutiny, and greater corporate financing constraints. Moreover, our study uncovers several mechanisms through which ESG rating divergence influences excess cash holdings, including exacerbating information asymmetry, amplifying environmental uncertainty, and heightening operational risk. This research contributes not only to a deeper understanding of the economic ramifications of ESG rating divergence and its influence on excess cash holdings but also offers valuable insights into the cash management decisions of listed companies, fostering sustainable enterprise development.