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Greenhushing
Context:
Many carbon-neutral certified firms in Australia measure, reduce, and offset emissions but choose not to advertise their efforts, a trend known as “greenhushing.”
What is Greenhushing?
- Greenhushing is when companies deliberately withhold or under-report information about their environmental goals and sustainability achievements.
- Unlike greenwashing (misleading claims about being sustainable), greenhushing involves remaining silent about sustainability efforts.
Greenwashing, Greenhushing, and Greenwishing: Understanding Key Concepts
- Greenwashing refers to the practice where businesses misrepresent themselves as more sustainable than they truly are.
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- This can involve misleading information about a product’s sustainability or labelling a fund as “green” when it isn’t.
- Greenwashing erodes trust and can have significant repercussions. It exists on a spectrum, from outright deceit to wishful thinking.
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- Greenhushing occurs when a company refuses to publicise its ESG information (Environmental, Social, and Governance).
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- The company might fear pushback from stakeholders who would find its sustainability efforts lacking, or from investors concerned that ESG initiatives could undermine returns.
- Although not overtly dishonest, greenhushing restricts transparency, making it harder to analyse corporate climate targets, share best practices, or calculate Scope 3 emissions that depend on widespread reporting.
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- Greenwishing describes unintentional greenwashing, where a company hopes to meet certain sustainability commitments but lacks the capacity to do so.
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- Driven by pressure to set ambitious goals, companies may commit to unrealistic targets due to financial, technological, or organisational constraints.
- Failing to achieve these targets can further undermine trust in the company and the broader sustainability efforts.
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Why Do Companies Greenhush?
- Litigation Fears: In the US, companies may stay silent to avoid lawsuits from shareholders who believe environmental actions reduce profits.
- Political and ESG Backlash: Firms in conservative regions facing ESG (Environmental, Social, Governance) opposition may avoid promoting sustainability to evade political scrutiny.
- Consumer Perception of Quality: Some firms fear that “green” products are seen as lower quality, more expensive, or less effective by consumers.
- Moral Discomfort in Tourism: In the tourism industry, companies may hide their sustainability efforts to avoid discomforting vacationing customers with issues like climate change.
- Avoiding Scrutiny: Firms may stay silent to avoid being held to a higher standard or facing increased public expectations regarding their environmental performance.
Reasons Carbon Neutral Firms Greenhush:
- Lack of Customer Demand: Many consumers are unaware of or don’t demand carbon neutral products, making companies reluctant to spend on advertising.
- Fear of Greenwashing Accusations: Firms fear being criticised for greenwashing, which could damage their reputation, so they choose to stay silent.
Why Firms Become Carbon Neutral Certified:
- Competitive Edge: Helps differentiate from competitors, attract talent, and access better financing terms.
- Social License & Stakeholder Relationships: Firms view carbon neutrality as a way to maintain social approval and improve relations with stakeholders.
- Ethical Motivation: Some firms are motivated by a genuine passion for the environment and do it because it’s the right thing to do.
Is Greenhushing on the Rise?
- A report by South Pole found that 58% of companies are reducing their climate communications due to increased regulation and scrutiny.
- Greenhushing has been observed across nearly all sectors globally.
Concerns and Possible Solutions:
- Loss of Visibility & Influence: By not sharing achievements, solutions remain hidden, and companies lose the opportunity to inspire others.
- Proposed Solutions:
- Emphasise sustainability as a journey: Firms can engage audiences in continuous improvement to reduce criticism.
- Better regulations: Policies like the EU’s Greenwashing Directive can bring clarity and build trust.
- Educating consumers: Raising awareness about sustainability can help change negative perceptions about green products.
