Post by account_disabled on Feb 18, 2024 3:38:09 GMT -5
Sustainability professionals are well informed about the risks of making exaggerations or false claims about a product's environmental credentials, practices better known as greenwashing . But what is happening with greenhushing and why is it important for the industry to start becoming familiar with the issue and the risks it entails?
According to ESG services provider RepRisk, one Middle East Mobile Number List in five corporate risk incidents linked to environmental, social and governance ( ESG ) factors are linked to cases of greenwashing . However, to evade these accusations, companies have begun to adopt greenhushing practices . We'll tell you what this is about!
Understanding greenhushing
As frameworks such as the Competition and Markets Authority's Green Claims Code emerge , to combat false or exaggerated sustainability claims, the number of companies accused of greenwashing could grow. To avoid these accusations, some brands and companies may feel compelled to not communicate as much about their environmental plans and move silently towards their sustainable goals. This practice is what is known as greenhushing .
The term greenhushing was coined by sustainability consultancy Treehugger in 2020, who claimed to frequently meet with clients about their sustainable initiatives. Often the reasons given were that they feared they were not doing enough, or that their actions would be perceived as not matching their words.
According to Dennis Schoeneborn, a professor at Copenhagen Business School, this is one of the main reasons why companies turn to greenhushing . They simply choose to go unnoticed for fear of attracting the attention of critical activists, journalists or academics.
What is greenhushing
Nowhere to hide sustainability claims
With government and public scrutiny of companies' sustainable goals, it will soon no longer be possible for businesses to hide or go unnoticed about this information. In fact, companies that often prefer to withhold information about sustainability progress to avoid boycotts, increased employee turnover, and reputational risk also face the risk that by not reporting, they could be causing more harm. of what they think.
This coincides with the findings of research published by consultancy South Pole in 2022, whose analysis covered 1,200 large companies with emissions reduction targets based on the Science-Based Targets Initiative (SBTi). in English), and revealed a tendency for companies to keep their goals and progress quiet.
Companies must know what it is
For John Willis, research director at Planet Tracker, greenhushing represents a lack of interest at the board level in sustainability goals. According to him, it can certainly be overwhelming for small and medium-sized businesses (SMEs) to collect the data to disseminate and report, but for big brands that have a lot of data on sales and their products it is no excuse. And he adds:
"Well, if you're not willing, don't be upset when people start questioning the validity of your claims or the sustainability of your products."
John Willis, director of research at Planet Tracker.
With investors and stakeholders actively seeking better ESG data, it's easy to understand why some companies may feel uncomfortable sharing the lack of progress they feel they are making. In fact, nearly 30,000 large companies , collectively worth around $25 trillion, did not respond to information requests in 2022 from CDP, a nonprofit that helps companies and cities disclose their environmental impact. .
There are many reasons why companies may be falling into greenhushing practices and not all of them may be malicious intent to hide information that could actively be perceived as harmful. However, it is imperative that companies take more of the responsibility, especially global brands that have the power to influence change.
This position is not radical. On the contrary, it is supported by the UN Sustainable Development Goals (SDGs), which recognize the need for private companies to play a central role in achieving their goals.
According to ESG services provider RepRisk, one Middle East Mobile Number List in five corporate risk incidents linked to environmental, social and governance ( ESG ) factors are linked to cases of greenwashing . However, to evade these accusations, companies have begun to adopt greenhushing practices . We'll tell you what this is about!
Understanding greenhushing
As frameworks such as the Competition and Markets Authority's Green Claims Code emerge , to combat false or exaggerated sustainability claims, the number of companies accused of greenwashing could grow. To avoid these accusations, some brands and companies may feel compelled to not communicate as much about their environmental plans and move silently towards their sustainable goals. This practice is what is known as greenhushing .
The term greenhushing was coined by sustainability consultancy Treehugger in 2020, who claimed to frequently meet with clients about their sustainable initiatives. Often the reasons given were that they feared they were not doing enough, or that their actions would be perceived as not matching their words.
According to Dennis Schoeneborn, a professor at Copenhagen Business School, this is one of the main reasons why companies turn to greenhushing . They simply choose to go unnoticed for fear of attracting the attention of critical activists, journalists or academics.
What is greenhushing
Nowhere to hide sustainability claims
With government and public scrutiny of companies' sustainable goals, it will soon no longer be possible for businesses to hide or go unnoticed about this information. In fact, companies that often prefer to withhold information about sustainability progress to avoid boycotts, increased employee turnover, and reputational risk also face the risk that by not reporting, they could be causing more harm. of what they think.
This coincides with the findings of research published by consultancy South Pole in 2022, whose analysis covered 1,200 large companies with emissions reduction targets based on the Science-Based Targets Initiative (SBTi). in English), and revealed a tendency for companies to keep their goals and progress quiet.
Companies must know what it is
For John Willis, research director at Planet Tracker, greenhushing represents a lack of interest at the board level in sustainability goals. According to him, it can certainly be overwhelming for small and medium-sized businesses (SMEs) to collect the data to disseminate and report, but for big brands that have a lot of data on sales and their products it is no excuse. And he adds:
"Well, if you're not willing, don't be upset when people start questioning the validity of your claims or the sustainability of your products."
John Willis, director of research at Planet Tracker.
With investors and stakeholders actively seeking better ESG data, it's easy to understand why some companies may feel uncomfortable sharing the lack of progress they feel they are making. In fact, nearly 30,000 large companies , collectively worth around $25 trillion, did not respond to information requests in 2022 from CDP, a nonprofit that helps companies and cities disclose their environmental impact. .
There are many reasons why companies may be falling into greenhushing practices and not all of them may be malicious intent to hide information that could actively be perceived as harmful. However, it is imperative that companies take more of the responsibility, especially global brands that have the power to influence change.
This position is not radical. On the contrary, it is supported by the UN Sustainable Development Goals (SDGs), which recognize the need for private companies to play a central role in achieving their goals.