Context: Greenwashing
Before discussing Green Hushing, it is important to address Greenwashing. This term is used for companies that claim to be committed to sustainability, social responsibility, and corporate governance (ESG) practices, but in reality, it is nothing more than fraud, mere speculation, or misleading advertising.
The practice consists of deceiving the community and consumers in general by posing as a conscious and sustainable company. However, it serves ignoble purposes, such as securing funding from investment banks more easily or simply misleading clients. Thus, it aims to boost commercial performance by attempting to inflate its reputation through cunning and even criminal strategies.
Facing reputational risks and legal challenges, some companies choose not to communicate their ESG goals (Environmental, Social & Governance), simply omitting them. This creates a certain "vacuum" in the disclosure of their corporate reporting, which involves not only financial and tangible aspects, but also intangible asset initiatives, recognized in the market as the "social balance sheet."
As such, a new term has emerged for this practice of concealing ESG targets from the market: Green Hushing.
What is Greenhushing?
Green Hushing refers to companies that deliberately remain silent regarding their sustainability, social responsibility, and corporate governance goals—even if they are well-intentioned or viable—for fear of being labeled as Greenwashing.
The term gained traction after October 2022, when the Swiss carbon finance consultancy South Pole highlighted this trend in a survey, revealing that 1,200 sustainability-focused companies were not disclosing achievements "beyond the bare minimum." The report labeled the trend as "concerning" because publicizing sustainable actions has the power to inspire others, shift mindsets, influence regulations, and foster collaboration between businesses and the community.
Recent research regarding this movement revealed that retailers hesitated to label a product as sustainable or derived from "Fair Trade" when the majority of their product portfolio did not come from suppliers that were as well-positioned in terms of sustainability. In other words, this mix of offerings would confuse the customer; thus, it seemed better to unify product messaging and disclose nothing regarding the good practices promoted by only a few suppliers.
Legal Impacts
Legal impacts also do not go unnoticed when it comes to Green Hushing. In this context, lawsuits have been filed in recent years to rectify issues and prevent companies from improperly profiting from any form of illegitimate reputation. As an example, there is the lawsuit against Dasani for claiming its water bottles were 100% recyclable, as well as the one against Kroger for claiming its sunscreen was "reef-friendly."
However, the overarching truth is that companies must always adopt best practices in sustainability, social responsibility, and corporate governance. It does not matter whether they keep their achievements concealed or not, practicing what is known as Green Hushing. Naturally, it would be preferable to announce them, as any communication encourages third parties and the community to also adopt sustainable practices.
What is unacceptable in the current stage of the global capitalist economy in which we live is for companies not to at least assess or account for their sustainability, social responsibility, and corporate governance initiatives.
Knowing oneself is, above all, having control over one's destiny.
Article written by: Paulo Perrotti, CEO of ESG Solution, Head of Cybersecurity at LGPD Solution, DPO, President of the Chamber of Commerce Brazil-Canada.
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