Greenwashing vs. Greenhushing: The Importance of Clear and Responsible Communication
Companies communicate with different stakeholders, adapting messages for different purposes: from aspirational messages that reflect the vision of the future, to sales strategies or community involvement initiatives. Communication varies depending on the target audience, whether it’s to inspire, attract consumers, involve the community or align internal stakeholders. With sustainability becoming a “sexy” and attractive topic, many organizations are integrating their long-term goals, achievements and aspirations into communications aimed at customers and investors, in order to influence decisions such as investments and acquisitions.
However, the problem arises when these messages, assumed to be true by stakeholders, are only partially true, distorted or lack verifiable elements. When decisions are made on the basis of false or misleading information, companies enter the dangerous territory of greenwashing.
What is Greenwashing?
Greenwashing occurs when a company communicates messages or information about sustainability that are misleading, exaggerated or false, with the aim of appearing more sustainable than it actually is. This includes environmental or social impact statements that cannot be verified, that omit critical information or that lead consumers, investors or other stakeholders to make decisions based on incorrect perceptions.
In the European Union, greenwashing is regulated by various standards and legal initiatives. In particular, Regulation (EU) 2019/2088, known as the Sustainable Finance Disclosure Regulation (SFDR), establishes requirements for financial companies to transparently communicate their ESG commitments. In addition, the Unfair Commercial Practices Directive (Directive 2005/29/EC) reinforces the ban on misleading commercial practices, including false or unverifiable environmental claims. Recently, the EU has launched initiatives to ensure that environmental claims made on packaging or in marketing communications are supported by concrete and auditable data.
What is Greenhushing?
Greenhushing, on the other hand, represents a more cautious approach. Some companies, fearing failure or exposure to public scrutiny, choose to hide or minimize the communication of their sustainability initiatives until they see concrete results. In this case, companies prefer to wait until they have indisputable proof before sharing information about their efforts. While this approach may seem safe, it can lead to a lack of transparency and make it difficult to build trust with stakeholders.
Greenhushing also deprives consumers and investors of information that could be important for purchasing or investment decisions. This lack of communication can give the perception that the company is inactive in sustainability, even when it makes significant efforts.
Greenwashing and Fact Checking
The main problem with greenwashing occurs when messages about sustainability are communicated as absolute truths, without providing consumers or stakeholders with the necessary direction to check the facts. If consumers are led to believe that a product, service or company is more sustainable than it actually is, based on partial or misleading information, they are being misled. This not only damages trust, but can also have legal consequences, given the increased regulation around environmental claims.
What often happens is that companies, when trying to convey aspirational messages, unwittingly fall into greenwashing, especially when they don’t provide concrete and verifiable elements to support their statements. For example, when communicating an ambitious target, such as “becoming carbon neutral by 2030”, it is essential to include verifiable details, such as concrete action plans, measurement methodologies and periodic progress reports.
A Clear and Responsible Strategy
To avoid falling into greenwashing or greenhushing practices, companies need a robust and responsible communication strategy. This strategy must ensure that all sustainability-related messages are clear, precise and verifiable. Long-term aspirational goals are important, but they must be accompanied by concrete and transparent plans, allowing stakeholders to monitor progress.
Communication must also be balanced: don’t exaggerate achievements or promise unrealistic results (to avoid greenwashing), but also don’t omit ongoing efforts (to avoid greenhousing). Transparency and responsibility are the key to building trust and credibility in an era where consumers and investors are increasingly aware of the environmental and social impact of companies.
Data and Transparency
To avoid falling into greenwashing or greenhushing practices, companies need a robust and responsible communication strategy. This strategy must ensure that all sustainability-related messages are clear, precise and verifiable. Long-term aspirational goals are important, but they must be accompanied by concrete and transparent plans, allowing stakeholders to monitor progress.
For any statement about sustainability to be credible, it is essential that companies collect, monitor and organize solid, verifiable data. The ability to back up statements with factual evidence is what distinguishes responsible communication from deceptive practice. Without reliable data, even the best-intentioned commitments can be called into question.
In addition to internal monitoring, it is essential to simplify the collection and processing of data throughout the value chain. Indirect emissions, resource consumption by suppliers and logistical impacts are all part of the sustainability profile. Automating and standardizing these processes allows for consistency, transparency and alignment with the standards in force.
Finally, collecting data is not enough – it needs to be communicated in a clear, adapted and relevant way to each audience. Investors are looking for evidence of risk mitigation; consumers value responsible practices; regulators demand compliance. By communicating transparently and strategically, companies build trust and position themselves as leaders in a market that is increasingly attentive to sustainability.
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