Why Greenhushing could be your biggest corporate communications mistake yet

Let’s be honest: in the age of ESG being ‘everything, everywhere, all at once’, companies are treading on eggshells when it comes to getting their sustainability messaging right. No organisation wants to be the next headline for a greenwashing scandal. But, by trying to avoid one pitfall, many firms are stumbling straight into another – greenhushing.

This is a rising trend of businesses opting to keep their sustainability efforts on the down-low, hoping that silence will save them from public and/or regulatory scrutiny. Spoiler alert: it won’t.

Yet recent research from data insights firm Connected Impact has found that almost six in ten (58%) of the 100 largest public and private companies in the US are responding to greenwashing concerns by keeping quiet on genuine ESG progress.

And in the asset management space, 44 ESG-focused funds in the EU chose to remove the ‘sustainable’ label from their brand names during the first half of 2023, according to data from consultancy firm Broadridge. This is a concerning trend, given that 44% of investors claim to be prioritising ESG over returns.

The cost of keeping quiet

While greenhushing might appear like a reasonable strategy for avoiding criticism, at least on the surface, today’s consumers, corporate buyers, investors, and employees are now firmly tuned in to what companies are doing for the planet and society.

If you’re not telling them, they’ll assume you’re doing nothing, or even covering up wrong moves. This can be a costly misstep.

Active versus passive greenhushing

Some firms are actively using greenhushing as a strategy to obscure a lack of meaningful ESG progress, to mask competitive disadvantages, or bypass regulatory concerns. For example, companies might refrain from communicating their efforts when measurement is complex and ESG data accuracy is uncertain.

Others are more passive in their approach, simply hoping to avoid a negative backlash by staying silent. Regardless of the root cause, however, greenhushing stifles knowledge-sharing and hinders industry-wide progress by preventing organisations from learning from each other’s successes and challenges. It can also hugely undermine stakeholder trust and hamper progress towards long-term sustainability goals.

At a time when the planet is facing unprecedented challenges, businesses have a powerful role to play in addressing these issues. This requires them to step up and speak out.

After all, 70% of consumers are more inclined to support brands that are transparent about their sustainability efforts, and willing to pay extra for their goods or services. So, if you choose to keep quiet on ESG, you’re not only avoiding scrutiny, but also missing out on a huge opportunity to build trust and loyalty – while gaining market share.

Let’s not forget about investors, either. ESG-driven investing isn’t a niche anymore, it’s mainstream, with $30.3 trillion invested globally in sustainable assets. If you’re not talking about your ESG efforts, you might as well be waving goodbye to that capital.

Transparency is the clear path ahead 

Given the nuances around ESG communications, how do you strike the right balance between greenwashing and greenhushing? What should your communications strategy feature – and what should it avoid?

Above all else, at Rationale, we believe transparency is key. Being upfront about where you are on your ESG journey, what you’re doing right, and where you need to do better.

Start with setting realistic, actionable ESG goals. Instead of making big promises that you might not be able to keep, focus on what’s achievable. Then communicate that clearly, without jargon, by connecting your efforts to real-world outcomes. People want to know how your sustainability initiatives are making a difference, not just in the abstract sense but in their personal and professional lives.

One of the most effective ways to do this is through ESG storytelling. Authentic, relatable stories about your sustainability efforts can resonate far more than any corporate report.

But it’s not about spinning a tale, it’s about sharing the journey. This kind of communication builds credibility and helps forge a deeper connection with your audience. In turn, this will help to build trust – and win over hearts, minds, and wallets!

How to communicate fearlessly

At Rationale, we believe the best alternative to greenhushing is smart, strategic, and fearless communication around your ESG initiatives. That’s why we designed the RAFT strategy, to help you stay afloat in the turbulent waters of sustainability storytelling. We help you create impact through:

  1. Risk-informed goal-setting

Mapping where you are on firm ground, and where you might be exposed, enabling you to play to your strengths while taking into account regulatory, fiscal, shareholder, and public perceptions.

  1. Audience expectations 

A crystal-clear understanding of exactly what each key audience needs to hear and what you want them to take away or act on.

  1. Fearless communication

Crafting clear, confident messages that are honest, ethical, and defensible. Every statement should be transparent, verifiable, and backed by meaningful action.

  1. Track and evolve 

 

Continually monitoring and adapting the strategy, staying ahead of shifting expectations from stakeholders and audiences alike.

The bottom line

Green hushing might seem like the easy way out, but it’s a short-sighted strategy that could cost you financially, strategically, and reputationally, in the long run. The companies that succeed in the ESG space will not be the ones that stay silent – they will be the ones that communicate openly, set realistic goals, and engage their stakeholders with authenticity.

It’s time to stop being scared and start talking. Because in the world of ESG, silence isn’t golden (or green!) – it’s a missed opportunity.

Find out more about our RAFT strategy in this sister blog or get in touch for a free discovery session and we’ll happily talk you through ways of applying it in your organisation.

Keep your eyes peeled for our next blogs in this series, where we will examine the role of AI in ESG communications, and how to handle the rolling back of DEI programmes with sensitivity and clarity.

Share this page

Related insights

5 mins

November 19, 2024

Bold messaging for medtech brands

Your new technology is set to change the face of healthcare. But, while your solutions stand at the cutting edge, you are finding it harder to be heard and differentiate within the market.

7 mins

Healthcare AI Chess
November 7, 2024

AI in Healthcare

In this post, diving chess meets medical AI on how marketers can deliver the value of AI effectively, while also building trust and understanding among patients and providers.

9 mins

FS ESG
November 1, 2024

Wary of a misstep on ESG?

You’ve got a compelling story to tell, and this is how to tell it.

Interested in working with us?