Futures

The Rise of ‘Greenhushing’: Companies Retreat from Public Climate Commitments, (from page 20230827.)

External link

Keywords

Themes

Other

Summary

The trend of “greenhushing” has emerged as companies, including BP and Amazon, quietly scale back climate commitments amid stricter regulations on greenwashing. This silence is concerning for experts like Nadia Kähkönen, as it stifles scrutiny and learning among companies. A report from South Pole found that nearly 25% of large corporations are no longer publicizing their climate goals due to fear of legal repercussions. While companies are still making commitments, they are hesitant to share them openly. New regulations in the U.S. and Europe are aiming to combat misleading environmental marketing, but uncertainty remains. Some investment firms have also reduced their public climate pledges, contributing to the trend. Ultimately, greenhushing restricts transparency in corporate climate actions, although it may deter misleading claims from companies.

Signals

name description change 10-year driving-force relevancy
Greenhushing Companies are choosing to remain silent about their climate goals and progress. Shift from publicizing climate commitments to avoiding disclosure due to regulatory pressure. In ten years, companies may adopt a culture of transparency with standardized emissions reporting. Increased regulations and lawsuits related to environmental marketing and greenwashing. 4
Regulatory Response to Greenwashing Governments are implementing stricter regulations to combat greenwashing practices. A transition from lenient to strict enforcement of environmental marketing standards. Stricter regulations will likely lead to more transparent corporate environmental practices. Growing public concern over misleading environmental claims and demand for accountability. 5
Corporate Silence on Sustainability Many companies are opting to not communicate their sustainability efforts publicly. From active promotion of sustainability to silence due to fear of backlash or litigation. In a decade, the business norm may shift towards transparent communication of sustainability efforts. Fear of negative publicity and legal repercussions from environmental claims. 4
Investor Reactions to Climate Goals Investment firms are reducing visibility of their climate commitments amid political backlash. Shift from public support for climate initiatives to withdrawal from visibility in a politically charged environment. Investment firms may find ways to align profitability with sustainability without public exposure. Political dynamics influencing corporate social responsibility and investor relations. 3

Concerns

name description relevancy
Greenhushing Companies are avoiding publicizing climate goals due to fear of backlash or legal repercussions, which may hinder environmental progress. 4
Increased Legal Risks Corporations face more lawsuits related to deceptive environmental marketing, leading to reluctance in sharing climate strategies. 5
Regulatory Uncertainty New regulations, especially in the EU, create confusion for companies regarding compliance, possibly stalling climate action disclosures. 4
Stifled Public Discourse The trend of companies not discussing their environmental efforts could impede public conversation and learning opportunities. 4
Impact of ‘Woke Investing’ Backlash Political backlash against sustainable investing may influence major firms to downplay or remove climate goals from public view. 3
Corporate Commitment vs. Execution A disconnect between companies making climate commitments and their actual performance and transparency in achieving them. 4

Behaviors

name description relevancy
Greenhushing Companies are choosing not to publicize their climate goals to avoid criticism and potential lawsuits. 5
Increased Corporate Silence A trend where companies are opting for silence over transparency regarding their environmental efforts due to regulatory fears. 4
Regulatory Compliance Anxiety Companies are hesitant to disclose climate targets due to fears of non-compliance with emerging regulations. 4
Shift from Greenwashing to Greenhushing A transition from overstating environmental credentials to remaining silent to avoid backlash. 5
Demand for Standardized Disclosure Calls for a standardized framework for companies to disclose emissions data transparently and regularly. 4
Impact of Political Climate on Sustainability Discourse The political backlash against ‘woke investing’ is affecting corporate communication around climate goals. 3
Consumer Pressure for Transparency Growing consumer demand for companies to disclose their true environmental actions to ensure accountability. 5

Technologies

name description relevancy
Greenhushing A strategy where companies choose not to publicize their climate goals to avoid litigation and scrutiny. 4
Greenwashing Regulation Emerging regulations aimed at countering deceptive environmental marketing practices by companies. 5
Green Claims Directive A set of rules by the European Union to regulate false advertising around sustainability claims. 5
Sustainability Disclosure Frameworks Frameworks aimed at standardizing the disclosure of emissions data by companies for better transparency. 5

Issues

name description relevancy
Greenhushing The trend of companies choosing not to publicize their climate goals, potentially stifling environmental progress and public discourse. 5
Regulatory Compliance Anxiety Companies are hesitant to disclose climate goals due to fear of legal repercussions from greenwashing regulations. 4
Impact of Political Backlash on Sustainability The reaction against ‘woke investing’ may influence corporate sustainability practices and transparency. 3
Evolving Marketing Regulations The update of green marketing guidelines by the FTC and the EU’s Green Claims Directive are reshaping corporate advertising strategies. 4
Need for Standardized Emissions Data Disclosure Calls for a framework to standardize emissions reporting could change how companies communicate their sustainability efforts. 4