Greenhushing is as bad as Greenwashing. Here’s why.

"We are making a lot of progress on sustainability. But we don't want to talk about it." This sentiment frequently emerges in my discussions with CEOs and corporate heads of sustainability. In recent times, the term "greenhushing" has gained significant traction. While "greenwashing" refers to overstating or misleading claims about eco-friendliness, "greenhushing" is the practice of downplaying or deliberately concealing positive environmental initiatives.

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In October 2022, Swiss carbon finance consultancy South Pole shed light on the growing trend of greenhushing in a comprehensive report. It revealed that nearly one-quarter of the 1,200 companies with a dedicated sustainability head were refraining from highlighting accomplishments "beyond the bare minimum." (Belgium, my country of origin, recorded the highest rate, with 41% of its companies having science-based climate targets yet not publicizing them.)

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Initially, the motivation behind greenhushing was often rooted in the fear of being called out by regulators and environmental groups for not meeting stated targets, or for perpetrating greenwashing. Recent lawsuits against brands like Dasani, Kroger, and Whole Foods, coupled with the EU's legislation against misleading or unverified green claims, underscore the growing awareness and consequences of such practices. More recently, a new factor has emerged: the apprehension of facing an "anti-woke" backlash, particularly evident in the United States. For instance, asset manager BlackRock witnessed several US states, notably Florida, divesting billions due to BlackRock's robust ESG portfolios.

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Consequently, companies find themselves caught between competing forces, often leading them to silence their environmental endeavors. To me, this is deeply disconcerting, and here's why.

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1.???? Sustainability needs pricing power

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Let me start with what I believe is the most important argument. One of the most commonly heard complaints from CFOs is that sustainability initiatives tend to be margin-dilutive. As Bill Gates also pointed out in his book “How to Avoid a Climate Disaster”, the cost disparity between green technology and conventional alternatives (also called the “green premium”) – can reach as high as 250%. Although this gap will diminish as green technology scales and matures, it's a persistent reality. The solution lies in creating customer value through sustainability, thus yielding pricing power. And the only way you can do that is by communicating, by making the sustainability alternatives sexier and more desirable. What I have noticed is that the greenhushing trend means that all too often, marketers and communication departments are standing on the sidelines of the sustainability playing field. And that results in a low return on investments for sustainability initiatives.?

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2.???? Actions inspire belief, not the other way around.

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Extensive neuroscientific research has shown that the number 1 cause of human change is when people around us change. Beliefs do not change our actions. Actions change our beliefs.? When companies choose to remain silent about their sustainable efforts, they miss out on the opportunity to inspire others and drive industry-wide improvements. Instead of leading by example, they perpetuate a culture of secrecy and complacency, stalling the path to a more sustainable future.

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3.???? We need to shoot for the moon

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As far back as 1994, Interface founder and chairman Ray Anderson set the goal of Mission Zero to have zero negative impact on the planet by 2020. He was a big proponent of setting “unreasonable” instead of incremental goals. “The more ambitious and aspirational your mission, the greater its power. Be unreasonable!”. Interface grew to be one of the world’s sustainable corporate pioneers, and the company became a great inspiration for many others.? In today’s world, Ray Anderson might be accused of setting unrealistic goals and potentially even of greenwashing.

With the climate crisis on our hands, this is not the time for incremental goals and actions. If we want to create transformation, we need to be able to set goals that we don’t know how to achieve yet.

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4.???? Progress trumps Perfection (and yes, it’s OK to make mistakes)

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Many companies grapple with the expectation of perfection, fearing that anything less will be labeled as greenwashing. Yet, this mentality contradicts entrepreneurial wisdom, where progress is driven by experimentation, adaptation, and learning from failures.

Starting the sustainability journey with an ultimate end goal in mind is important. But what is even more important is making deliberate progress by trying, failing fast, and adapting your processes along the way. It is OK to make mistakes, as long as we learn from them.

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Recently, at a sustainability conference in Amsterdam, I witnessed a growing divide between pragmatists seeking solutions within the existing economic system and idealists advocating for a complete overhaul. At times, it felt like we ended up in a circular firing squad, with heated discussions and insinuations of greenwashing versus naiveté. Such debates are healthy when open, but companies often retreat into silence. And this is only wind in the sails of the climate sceptics and the ‘anti-woke’ movement. And it certainly does not help our planet.

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