["Business Ethics, the Environment &Responsibility, EarlyView. ", "\nABSTRACT\nESG rating disagreement (ESGRD) is derived from ESG ratings. Research on its impact on corporate sustainable development strategies can help better understand and promote the development of the Chinese ESG industry, thus providing useful references for developing countries worldwide. This study uses data from Chinese A‐share listed companies from 2015 to 2023 as the sample, applies the fraud triangle theory to analyze the impact of ESGRD on corporate greenwashing behavior, and examines the moderating effects of media attention and environmental regulation based on institutional theory. The results reveal that ESGRD exacerbates corporate greenwashing behavior. The mechanism analysis indicates that ESGRD induces corporate greenwashing behavior through increasing financing constraints, enhancing information asymmetry, and exacerbating managerial myopia. The moderating effect analysis finds that both media attention (an informal institution) and environmental regulation (a formal institution) have negative moderating effects, which can weaken the positive impact of ESGRD on corporate greenwashing behavior. The heterogeneity analysis shows that the positive impact of ESGRD on greenwashing is more significant in non‐heavily polluting industries and enterprises with low foreign investor shareholdings. An extended analysis reports that ESGRD exhibits significant spillover effects, exacerbating the greenwashing behavior of other firms in the same industry and province. The conclusions not only expand the research scope on the economic consequences of ESGRD but also hold significant implications for standardizing ESG rating criteria, driving corporate green transformation, and fostering sustainable development.\n"]