Forget Greenwashing, Now Companies Are "Greenhushing"

Despite climate change remaining heavy on the public’s mind, companies don't seem to be shouting about their sustainability efforts as loudly these days. After an era of marketers constantly pronouncing their environmentally friendly corporate efforts, businesses are now staying quiet about whatever (if any) green initiatives within their walls in a marketing trend known as "greenhushing."

Greenwashing to Greenhushing

According to a recent report, over half of companies surveyed are actually cutting back on communicating their sustainability initiatives. The reason? They're scared of being called out for greenwashing–you know, when companies try to make themselves look greener than they really are.

The irony: Companies used to be all about touting eco-friendly credentials, plastering "sustainable" and "environmentally-friendly" all over their marketing. Not to mention, 31% of public companies who have been caught greenwashing since 2018 were also found to be “socialwashing,” or making misleading social claims on top of their green ones. It’s simple: Lie to your customers, and they stop believing–and buying from–your company.

Now, many seem terrified of even mentioning the word "green" in case someone comes after them with a lawsuit. With behemoths like Volkswagen getting busted for fudging their emissions data, it's no wonder the marketing team gets a little nervous. No one wants to be the next company dragged through the mud for exaggerating their environmental efforts. McDonald’s, Nespresso, Starbucks and Coca-Cola have all been in the same boat, falsely aggrandizing their contribution to a greener planet–and getting caught.

"The crackdown on greenwashing really makes a lot of companies think twice before they say something," Wren Montgomery, associate professor of sustainability at Ivey Business School and co-founder of the Greenwash Action Lab, an anti-greenwashing researcher, told Marketing Dive. “And it may be that they’re actually doing things internally and trying to change, but they’re just being a little bit more careful about the claims they’re making and not overclaiming about what they’re doing.”

Greenhushing Real Efforts

As greenhushing extends beyond corporations falsifying their environmental missions, companies who stay silent could miss out on major opportunities. Sustainability is a huge selling point, especially for younger consumers who want to support eco-conscious brands. So, if you're not shouting about your business’s veritable green initiatives, you may be leaving money on the table.

Not to mention, the lack of transparency means we're all kind of flying blind. How are we supposed to hold these companies accountable if they won't reveal what they're doing? It's as if they say, "Trust us, we're being sustainable...we just don't want to talk about it."

According to the report, most companies actually do have emissions reduction targets and are increasing their sustainability budgets. South Pole’s research with Grist showed 89% of companies they studied have a net-zero target, and nearly 75% have actually directed budget increases to make their green initiatives a reality. Here, a little more transparency could go a long way in rebuilding consumer trust. 

Looking Forward

Efforts are ramping up in the U.S. and Europe to make it mandatory for brands to report their emissions data, a practice that is currently optional. The Federal Trade Commission (FTC), which first introduced its Green Guides in 1992, has been revising them to reflect evolving perceptions and cultural shifts regarding climate change. A new version is anticipated later this year.

For terms like "green," "sustainable," and "eco-friendly," the FTC is advocating for clearer, more precise language to help consumers make well-informed choices based on their individual values. The guidelines also require brands to specify goals and deadlines for any claims about achieving net-zero emissions.

The Bottom Line

At the end of the day, greenhushing might make sense from a risk-averse perspective, but it's not doing anyone any favors. We need companies to be bold, to lead the charge on sustainability, and to share their successes and failures so we can all learn from them.

“In my view, greenwashing typically occurs due to a lack of education rather than deliberate deception,” Mastercard Chief Marketing and Communications Officer Raja Rajamannar told Marketing Dive. “It’s essential that marketers fully understand sustainability terminology, understand the impact of their actions and communicate transparently with consumers.” 

Otherwise, we might as well just give up and go back to using plastic straws. Even though we all know that corporations–not consumers–are the root problem.