For decades, environmental advocates have fought against the misleading practice of “greenwashing”, where companies falsely claim eco-friendly practices. Now governments and authorities alike, from the EU to the US, are stepping up with stricter regulations and guidelines to combat these deceptive claims. While these efforts are commendable, and a long overdue step toward transparency, they’ve brought with it an unexpected consequence.
Many companies, even those at the forefront of progressive sustainability initiatives, are growing increasingly hesitant to speak out about their efforts or are deleting claims – the emerging trend of “greenhushing”. A survey by South Pole found that around 70% of sustainability-minded companies worldwide are deliberately withholding their climate goals to comply with new regulations and avoid public scrutiny. Are these well-intentioned rules inadvertently stifling the very progress, and action, they aim to promote?
Having supported many clients across multiple industries in the development and communication of their sustainability strategies, we’ve seen firsthand how the fear of mis-stepping into greenwashing accusations can lead to “Greenwash Paralysis”. The consequences of this hesitation go far beyond just one company. Creating the illusion that no real progress is being made can embolden others to decelerate their own sustainability initiatives. This erodes trust as well as the competitive drive and pressure that often spurs companies to set more ambitious goals, ultimately stalling industry-wide progress.
Actionable recommendations
As sustainability professionals, we must encourage companies to see tightening regulations and greenwashing risks as opportunities for stronger and more compelling communication as well as informed business decision-making. This is a pivotal moment for brands to shift from fear-driven approaches to embrace transparency and focus on long-term business resilience. This will help drive both meaningful impact and business success. Here are seven actionable recommendations to help companies break free from greenwash paralysis, seize opportunities and move forward with confidence:
1. Prepare your business to meet claims regulatory requirements
Company’s need to ensure they are prepared for existing and emerging green claims regulation and industry guidance. Assessing a business’s preparedness will identify gaps and priority actions to comply and support individual green claims. This should include systems, processes, capacities and governance structures in place to issue, approve, track and monitor claims on a continuous basis.
2. Assess green claims in line with relevant regulation
Evaluate every individual green claim on products, services and marketing materials to ensure compliance with regulation and best practice guidance. Leverage AI and a robust assessment framework to check every requirement with a clear audit trail that legal teams and third-party verifiers can review.
3. Focus ESG strategies and plans on material issues
Businesses must focus their ESG strategies on the most material issues to ensure authenticity and avoid greenwashing. By addressing what truly impacts their operations and stakeholders, companies can create meaningful, credible initiatives that drive real progress rather than superficial claims. The new EU Corporate Sustainability Reporting Directive (CSRD) Double Materiality assessment can provide the strategic insight on where to focus efforts, as well as meet reporting requirements.
4. Prioritise incremental progress – in action and communications
Lofty, ambitious, long-term goals can feel overwhelming and paralysing. Instead, focus on taking small, actionable steps that are contributing to long-term success and focus communications around these. Consider what’s going to ultimately drive long-lasting change and success, rather than what’s going to grab the headlines.
4. Embrace failure - it’s part of grappling with complex challenges
Acknowledge that embracing change comes with inherent risks and the possibility of falling short of heightened expectations. Build credibility further, internally and externally, by creating and fostering a culture of continuous self-assessment and improvement. This approach will resonate much more powerfully when communicating progress on initiatives than lofty, unverified claims.
5. Champion transparency and a humble tone of voice
No one company can be perfect, especially when dealing with complex sustainability topics. Be transparent about your successes and your setbacks to build trust with your audience. By openly sharing your journey in an engaging way, including the missteps, you demonstrate a commitment to authenticity and continuous improvement. Openly sharing your learnings will also help other companies learn and develop effective initiatives.
6. Collaborate with partners, vendors, and other stakeholders
Strong relationships are the backbone of effective sustainability efforts. By collaborating with partners, vendors, and other stakeholders, you can build a foundation of trust, cultivate a culture of collaboration and gain confidence in your approach, goals and progress. These collective efforts can also amplify your impact and drive systemic change.
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