The practice of greenhushing, or choosing not to publicize climate goals, is becoming more prevalent among companies. This strategy is a response to the crackdown on greenwashing and the growing number of lawsuits over deceptive environmental marketing. However, it makes it difficult to scrutinize companies’ actions and learn from each other’s mistakes. The term “greenhushing” was popularized by a report from South Pole, which found that nearly a quarter of large companies worldwide have decided not to publicize their milestones on climate action. The increase in corporate commitments and sustainability initiatives has also contributed to the rise of greenhushing. Additionally, regulations aimed at countering greenwashing, such as the Green Claims Directive in the European Union, and the need for standardized disclosure of emissions data are factors influencing this trend. Despite concerns, the practice of greenhushing is seen as a positive development as it curbs misleading information about climate progress.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Greenhushing: Companies not publicizing goals | From publicizing to silence | Increased transparency and accountability | Fear of lawsuits and criticism |
| Governments cracking down on greenwashing | From lax regulations to strict regulations | Stronger legal cases against greenwashing | Protecting consumers from deception |
| Companies concerned about criticism | From reluctance to talk to silence | Stifling public discourse and progress | Fear of negative public response |
| More countries crafting regulations against greenwashing | From limited regulations to comprehensive regulations | Greater compliance and reduced greenwashing | Legal requirements and potential lawsuits |
| Updating of rules on environmental marketing | From outdated rules to updated guidelines | Strengthened legal cases against violations | Increased clarity and accountability |
| Republican backlash against “woke investing” | From support to backlash | Potential impact on asset managers | Separate from corporate sustainability |
| Companies stopping misleading climate progress claims | From false claims to silence | Increased accountability and honesty | Litigation, regulation, and consumer pressure |