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The Rise of “Greenhushing” Among Carbon-Neutral Certified Firms

Context:

While the number of carbon-neutral certified companies has been increasing globally, a notable trend has emerged where many of these firms opt not to publicize their environmental achievements, a phenomenon known as “greenhushing.” This reluctance often stems from a blend of altruism and a desire to maintain their social salience without appearing to capitalize on their green initiatives.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

  1. What is Greenhushing?
  2. Concerns with Greenhushing
  3. Solutions to Address Greenhushing

What is Greenhushing?

  • Greenhushing refers to when companies underreport or withhold information about their environmental goals and achievements.
  • These firms deliberately do not publicize their eco-friendly efforts or remain quiet about their future commitments to environmental sustainability.
Why Do Firms Engage in Greenhushing?
  • In the US, public firms could face lawsuits if perceived as prioritizing sustainability over shareholder profits, leading to firms avoiding open discussions about their environmental activities.
  • In some conservative regions of the US, there has been a backlash against ESG (Environmental, Social, and Governance) initiatives, causing firms to retreat from promoting their sustainability goals to avoid political and regulatory scrutiny.
  • Many consumers perceive green products to be of lower quality or to have higher prices, discouraging companies from marketing their environmental contributions due to potential brand harm.
  • Firms vocal about sustainability may attract unwanted attention and be held to higher standards, pushing them to remain silent to avoid future commitments or pressures to achieve more ambitious goals.
  • In industries like tourism, companies may opt not to promote their environmental efforts, fearing they might make customers uncomfortable by reminding them of issues like climate change or resource depletion.
  • Concerns about greenwashing accusations, where companies are criticized for falsely claiming to be more eco-friendly than they are, also encourage firms to hide their environmental achievements from public view.
  • A lack of consumer demand for carbon-neutral products further discourages companies from investing in marketing their carbon neutrality, as they are unwilling to spend on promotion without clear consumer interest.

Concerns with Greenhushing:

  • South Pole Report Findings: According to climate consultancy South Pole, 58% of surveyed companies have reduced their climate communication due to increased regulation and scrutiny.
  • Assessment Challenges: Without open communication about sustainability efforts, it becomes difficult to evaluate a company’s progress in reducing carbon emissions.
  • Tracking and Verification: Greenhushing reduces the ability to track and verify the progress of climate action.
  • Delayed Adoption: Withholding information about environmental efforts could delay the adoption of sustainable practices, weakening the global effort to combat climate change.
  • Fear of Backlash: Concerns about backlash from industries or regions that oppose sustainability efforts can discourage other businesses from adopting sustainable practices.
  • Consumer Impact: Silence about sustainability efforts can lead to consumers continuing to purchase less sustainable products, inadvertently slowing down the demand for eco-friendly alternatives.

Solutions to Address Greenhushing:

  • Emphasize Sustainability as a Journey: Companies should stress that environmental sustainability is an ongoing process and not a fixed goal.
  • Engage Audiences: Highlighting continuous improvement and engaging with audiences can help reduce criticism and ease concerns about greenwashing.
  • Stronger RegulationsClearer regulations, like the EU’s Greenwashing directive, can help prevent misleading advertisements, providing consumers with more accurate product information.
  • Increase Consumer Awareness: Raising awareness about sustainability can help reverse negative perceptions of green products, encouraging consumers to support companies that are committed to sustainable practices.

-Source: Down To Earth


November 2024
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