Greenhushing: what is it and why do companies do it?

Australia is home to a growing number of carbon neutral certified firms, but many of them don’t advertise their credentials.

These firms measure, reduce and offset their carbon emissions but often decide to stay silent about their efforts, an emerging global trend called “greenhushing”.

What is greenhushing?

Greenhushing occurs when firms underreport or strategically withhold information about their environmental goals and achievements. Greenhushing firms don’t advertise their green credentials or deliberately remain silent about their future commitments to environmental sustainability.

Why firms do it

Greenhushing can happen for different reasons. In the US, where public companies can be sued for violating their obligation to increase shareholder profits, firms stay silent about their environmental efforts to avoid costly litigation.

In conservative states that have experienced a strong ESG (environmental, social, and governance) backlash, regulators have turned their attention to sustainable investments, prompting firms to stop talking about their green efforts.

Some firms don’t advertise their sustainable products because consumers associate “green” with lower quality.

Consumers intuitively think that green products perform less well, so they’ll need to use more, or are more expensive than their conventional counterparts, even when objectively this is not the case.

When consumers believe that sustainability was achieved at the cost of reduced technical performance or increased price, companies can be reluctant to promote the environmental benefits of their products.

Research in the tourism industry has shown that sustainable businesses only communicate a small percentage of their environmental efforts to avoid moral discomfort of their guests.

When on vacation, people like to indulge and not concern themselves with everyday problems such as climate change, resource depletion or unsustainable lifestyles.

When sustainability is inconvenient, tourism businesses prefer to take environmental measures “behind the scenes” and “out of sight” to not offend their customers’ sense of indulgence.

Some companies remain silent about their environmental commitments to avoid scrutiny.

Firms that promote themselves as environmentally responsible are often held to a higher standard than those that do not actively espouse the same environmental values.

Banging the drum can invite outside attention and raise expectations of future commitments. When it comes to climate action, firms may decide to hide their climate goals to avoid scrutiny and questions about how to achieve them.

Why carbon-neutral certified firms Greenhush?

Carbon-neutral certified firms remain silent for two major reasons: Lack of customer demand and to avoid greenwashing accusations.

Not many consumers know about carbon neutrality or ask for carbon-neutral products. Without the demand from customers, companies are reluctant to spend money on advertising their carbon neutrality.

Another reason is greenwashing accusations. Many firms are afraid that touting their climate credentials will make them targets of public criticism.

Public accusations of greenwashing can harm a firm’s image and cause reputational damage to brands. To avoid the negative impacts of criticism, these firms prefer to hide their achievements from external audiences.

Why firms become carbon-neutral certified

Competitive motives are what drive some businesses. Carbon neutrality helps to differentiate themselves from competitors, attract talent and access finance at better terms.

Other firms see carbon neutrality as a strategy to maintain their social licence and improve stakeholder relationships.

Finally, ethically motivated firms become certified because it is the right thing to do. Their passion and responsibility for the environment are the major drivers behind environmental sustainability.

However, these firms differ in how they communicate their green credentials.

Competitively driven firms are proactive in promoting their carbon-neutral status. Firms motivated by altruism and a desire to maintain their social licence, on the other hand, are more reluctant to communicate and tend to greenhush more often.

Is greenhushing on the rise?

A recent report by Swiss-based climate consultancy South Pole revealed that companies across nearly all sectors are engaging in greenhushing.

Its global survey of 1,400 sustainability executives discovered that 58 per cent of companies are intentionally decreasing their climate communications because of greater regulation and scrutiny.

Despite their actions toward and finance of net zero goals, these companies refrain from publicising their efforts, something which the South Pole observes is a concerning trend.

Should we be concerned and what can be done?

When green companies communicate their environmental achievements, they make solutions more visible, which may motivate others to copy them. Greenhushing, however, is a step in the opposite direction.

While the reasons for being silent differ from case to case, there are a few things that can reverse the trend.

First, companies can emphasise that environmental sustainability is a journey and not a destination. Engaging their audiences and highlighting their efforts for continuous improvement can reduce criticism and allay concerns about greenwashing accusations.

Second, better regulations can bring clarity, build trust and level the playing field. The EU’s Greenwashing Directive approved earlier this year is a positive step in this direction.

Third, educating consumers about sustainability can increase awareness of environmental efforts and help them to better understand what different terms mean. This can lower their negative association with green products and choose more sustainable companies.

This content is originally published under the Creative Commons license by 360info™. The Ground Report editorial team has made some changes to the original version.

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