What is ‘green hushing’? The new negative sustainability trend, explained

12 03 2023

Photo: Getty

Greenwashing has become part of our modern-day lexicon. Now there’s a new term, ‘green hushing,’ for when a company is too quiet about its accomplishments. By Talib Visram from Fast Company • Reposted: March 12, 21023

Greenwashing—the term referring to businesses exaggerating their commitment to sustainability—is now firmly rooted in our modern-day lexicon. Baseless green claims draw public scrutiny and sometimes outrage, not to mention lawsuits, such as ones filed against companies including Dasani, Kroger, and Whole Foods.

Faced with the threats of tarnished reputations and legal trouble, some companies are instead choosing not to communicate their climate goals at all, leaving them unpublicized and meaning other companies can’t emulate their success. A new term has sprouted to signify the practice: green hushing.

WHAT IS GREEN HUSHING?

Green hushing refers to companies purposely keeping quiet about their sustainability goals, even if they are well-intentioned or plausible, for fear of being labeled greenwashers.

Xavier Font, professor of sustainability marketing at the University of Surrey in the U.K., defines it as: “the deliberate downplaying of your sustainability practices for fear that it will make your company look less competent, or have a negative consequence for you.”

HOW LONG HAS THIS TERM BEEN AROUND, AND HOW COMMON IS IT?

Since at least 2017. Font had seen the term only once before studying the practice more closely that year. And for something many of us may not have heard of, the practice is pretty prevalent. “Greenwashing is very visible,” Font says. “Green hushing, by definition, is not. [But] I think green hushing happens a lot more than we realize.”

It gained more widespread coverage after October 2022, when Swiss carbon finance consultancy South Pole highlighted the trend of green hushing in a report. It noted that nearly a quarter of 1,200 companies with a sustainability head are not publicizing achievements “beyond the bare minimum.” (Belgium had the highest rate, with 41% of its companies with science-based climate targets not publicizing them.) The report called the trend “concerning,” because publishing green actions has the power to inspire others, shift mindsets, and encourage collaborative approaches.

WHAT DOES IT LOOK LIKE IN PRACTICE?

In his study, Font, who focuses on the tourism industry, found that companies were not communicating environmental successes to consumers, especially odd in an industry where there are many chances to do so, such as at hotels or on websites.

The study concentrated on 31 small rural tourism businesses in England’s Peak District National Park. Font found that companies communicated only 30% of their sustainability actions. He noted that companies feared that by broadcasting their sustainability practices, customers would believe their vacation experiences would be worse.

One issue, he says, is that many companies aren’t sure when to announce achievements. A hotel he worked with that procured sustainable seafood sourcing didn’t know whether to announce it when launching, or when half of its hotels used it, or when all of them did. “If 50% of my supply chain is doing something,” he was asked, “is that a message that is credible for me to communicate to the world?”

Similarly, Font mentions pushback over supermarkets labeling bananas as fair trade, because customers then asked why more goods weren’t fair trade. “Many companies are choosing to not talk about it, simply for fear that the customers will see the glass as being half empty, not half full,” he says.

For larger companies, there are legal motivations to not report extensively. In recent years, lawsuits have been filed against Dasani for claiming its water bottles were 100% recyclable, and Kroger for claiming its sunscreen was “reef-friendly.” Cracking down on these false claims—like the ubiquitous “locally sourced wherever possible”—is a good thing, Font says. “That’s a bit like me saying, ‘I’m a good husband whenever possible,’” he says. “It has no value.”

WHAT OTHER FORCES ARE AT PLAY?

Like in Europe, American companies are receiving pressure from environmental groups to stop greenwashing. But in the U.S., companies have to worry about the other political side, too, as there is an increased politicization of the climate crisis and environmental and social governance (ESG).

Several states, most notably Florida, are divesting billions of dollars from BlackRock because it has developed strong ESG portfolios. “We see attacks being more irrational and so fierce,” says Peter Seele, a professor of corporate social responsibility and business ethics at Università della Svizzera Italiana in Switzerland. This has created another reason for companies to stay silent, or else also be on the receiving end of “anti-woke” tirades.

That polarization is troubling, Font says, and seeps into customers’ beliefs, which requires businesses to be culturally sensitive in the markets they operate in. “If I was a company in the U.S., serving the full range of customers, I would downplay the ‘S word,’” he says, referring to sustainability. They may want to spin a sustainable practice as one that is beneficial to customers in some other way. 

“In the U.S., we’re just more litigious,” says Anant Sundaram, professor of business and climate change at Dartmouth University. “You say something in your 10K, or you put out some document, [and] immediately it becomes the basis for a lawsuit.” So American companies “tend to prefer to stay under the radar, and are a little gun-shy.”

WHAT COULD REDUCE GREEN HUSHING?

Climate reporting is now prevalent across developed nations. And the disclosures on climate risks, mitigation, and sustainable strategies that companies submit to government agencies are publicly accessible. But mostly, they are voluntary—allowing businesses to green hush.

Companies are keeping relatively quiet about most of their climate data. In the U.S., a report found that while 71% of S&P 500 companies report their greenhouse gas emissions, only 28% of smaller companies do so. And only 15% of S&P 500 companies disclose information on biodiversity and deforestation, and 12% on water risks. 

But public reporting is changing soon. In the EU, climate disclosures will become mandatory in 2025, and for a wider swath of companies than previously. In the U.S., the Securities and Exchange Commission aims to roll out stricter regulations for 2024 (which will initially be for larger, publicly traded companies, with market caps of at least $700 million). This stricter enforcement may give businesses less of a choice to practice green hushing.

WHAT ARE THE CONSEQUENCES OF GREEN HUSHING?

It’s not ideal. As the Swiss report noted, companies discussing their climate actions can have positive knock-on effects and create change. But not if they’re silent.

Greenwashing crackdowns are valuable, but not if they are indiscriminate. Seele says there is a trend of attacking companies no matter how good their actions or intentions—which has brought about another phrase in the German media: “greenwashing truther,” for people who launch those kinds of accusations.

And in France, new greenwashing laws will place fines on companies for making misleading claims like being carbon neutral. While well-intended, such laws may serve to reduce greenwashing but heighten green hushing.

To see the original post, follow this link: https://www.fastcompany.com/90858144/what-is-green-hushing-the-new-negative-sustainability-trend-explained

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3 ways sustainable brands could help conscious consumerism make a comeback

10 02 2023

Graphic: Chief Learning Officer

A new survey asked shoppers why they aren’t buying from socially responsible brands anymore. The biggest problems: They can’t name any and think they’re too expensive. By Heath Shacklford from Fast Company • Reposted: February 9, 2023

The number of Americans who believe it is important to support socially responsible brands has risen in the past decade. The percentage of consumers who plan to increase their spending with such brands in the year ahead has never been higher. Yet, when push comes to shove, fewer and fewer consumers report purchasing products and services from socially responsible companies. 

These are some of the key takeaways from the 10th annual Conscious Consumer Spending Index, a benchmarking study my agency runs that gauges momentum for conscious consumerism, charitable giving and earth-friendly practices. The Index score is calculated by evaluating the importance consumers place on purchasing from socially responsible companies, actions taken to support such products and services, and future intent to increase the amount they spend with responsible organizations. 

With inflation lingering near 40-year highs and one quarter of Americans reporting a decrease in their household income in the past year, more individuals are finding it challenging to support socially responsible brands, which typically cost more than traditional products and services. In fact, almost half of respondents (46%) said the cost of socially responsible goods and services prevented them from buying more from conscious companies. 

This decrease in purchasing power resulted in only 57% of respondents reporting they purchased goods for socially responsible brands in 2022, down from 64% in 2021 and 62% from the inaugural index results in 2013. 

While the current economic situation is making it harder for consumers to support socially responsible brands, there are also more systemic challenges to the “do good” movement. Specifically, here are three opportunities for improvement as we consider the path forward for conscious consumerism. 

HOLDING OUT FOR A HERO

Way back in 2015, TOMS was in the media spotlight as an icon for what do good business was all about. It was a hero brand, a poster child for the movement. As part of the Index that year, we began asking consumers to name one company or organization that is socially responsible. Based on unaided recall, TOMS topped the list of responses, and repeated that performance the following year. 

Fast forward to 2022. For the fourth year in a row, Amazon is the most cited brand when consumers are asked this question. Meanwhile, TOMS no longer makes the list at all. It’s a classic case of out of sight, out of mind. There are only so many experiences the average consumer can have with TOMS as a brand, even if they are rabid fans. Meanwhile, they engage with companies like Amazon and Walmart, number two on this year’s list, on a daily or weekly basis. 

The TOMS one-for-one business model is no longer a novelty and no longer the focus of frequent media attention. As a result, we have lost our hero brand for socially-responsible business. We have many strong brands who are well-known for doing good: Patagonia and Ben & Jerry’s are among the examples. But no brand has captured our collective attention and imagination like TOMS did during its peak as a media darling. 

Ultimately, this movement needs a hero. A brand that emerges as a leader and carries the torch for socially-responsible business practices. A brand that is large enough to demand consistent attention from the news media and the average consumer. A brand who can serve as an example and as a powerful advocate for business as a force for good.

To see the original post, follow this link: https://www.fastcompany.com/90847231/sustainable-brands-conscious-consumerism-come-back