‘Destination Zero’, published by Swiss consultancy South Pole in January 2024, says keeping quiet about climate action is setting us back. It found that nearly half of companies surveyed (44%) have found external communication on climate targets increasingly difficult over the past year. 58% are decreasing communications as a result.
Paradoxically, those same companies say communicating their climate practices is good for their bottom line. 93% see the communication of their net zero strategy as key to commercial success.
What’s a company to do? It can feel like a no-win situation for businesses trying to do the right thing. How do you strike a balance between greenwashing (saying too much) and greenhushing (saying too little)? And why does it matter?
What’s greenwashing and why is it a problem?
Greenwashing is when a company makes itself out to be doing more to protect the environment than it really is.
It has grown in recent years as companies have been adapting to rising consumer demand for sustainability. However, in an effort to meet this demand, sometimes companies overstate or create a misleading impression of how sustainable they are.
In Aotearoa New Zealand, the Fair Trading Act makes it illegal for businesses to mislead or deceive. If found guilty, they can face significant fines. Just being accused of greenwashing can cause significant brand damage.
Greenwashing has become so prevalent that in January 2024 the European Union voted to ban misleading terms such as ‘environmentally friendly’, ‘eco’, ‘climate neutral’, ‘climate positive’ and ‘biodegradable’ without evidence.
Closer to home, Consumer NZ is running a campaign to call out greenwashing. At the end of 2023, together with Lawyers for Climate Action and the Environmental Law Initiative, the organisation took Z Energy to the High Court for greenwashing about its attempts to decarbonise. Z Energy has denied the charges.
What’s greenhushing and why is it a problem?
Greenhushing is when a company under-reports its sustainability progress (or doesn’t talk about it at all) to avoid being criticised for not doing enough.
It’s a new phenomenon that has arisen as accusations of greenwashing have grown. Many companies are now afraid to talk about sustainability at all, even when they’re making good progress. That’s not a good thing, because leading companies inspire others. Also, if fewer companies share their sustainability progress there’ll be less pressure on laggards.
Surprisingly, the South Pole report found that greenhushing is most common among the most sustainable companies. 88% of those in environmental services said they were decreasing their messaging about their climate targets, even though 93% said they were on track to meet their goals.
The main reason they gave for greenhushing was heightened scrutiny from investors, customers and the media.
The report said:
“While environmental claims must be backed by robust data so as not to mislead stakeholders, it is equally important that climate leaders set a good example. Being unwilling to communicate climate action out of fear of attack provides climate laggards with the cover to continue stalling on making meaningful change. In our opinion, the level of scrutiny needs to strike the right balance. Companies taking genuine action should be confident to communicate their successes and their lessons learned. This encourages others to follow their lead.”
In the same vein, Z Energy CEO Lindis Jones says that court cases against corporates around the world are penalising organisations that are most open about their emissions, and that deters others from stepping up.
How can you share your sustainability progress while avoiding greenwashing AND greenhushing?
It’s important to set goals and share your sustainability progress. Your staff, customers and consumers want to know and if you get it right, it can help grow your market share. It can also inspire others to follow and help grow the sustainability movement.
Yet with growing scrutiny it’s not easy to communicate sustainability well by avoiding both greenwashing and greenhushing.
Here are some tips:
- Set realistic targets and report on them. Make sure you have a solid sustainability strategy that focuses on issues that are most material to your business. Set specific, measurable and verifiable goals and report on them.
- Be honest and transparent. Stick to the facts and don’t overstate your progress. Be transparent where things aren’t going so well to build trust.
- Use plain language. Use simple language that your audiences will understand. Avoid jargon. Don’t use vague terms like ‘eco-friendly’, ‘good for the planet’ or ‘natural’. Be specific.
- Ditch the animal pics. Avoid imagery such as leaves, cute creatures or a green tick that may imply a product is better for the environment than it really is.
- Consider certification. Reputable third-party certifications such as Fairtrade, BioGro Organic or B Corp can give consumers confidence that a product or service meets certain criteria. Check out the main sustainability certifications used in Aotearoa New Zealand.
- Have evidence ready. Make sure you can substantiate any claims you make. Save documentation of evidence, both quantitative and qualitative. Have it to hand in case you are questioned.
- Upskill your team. The role of your sustainability and communications teams is important in getting this right. Make sure they work well together and understand the nuances of sustainability terminology and the law. If necessary, undergo some training.
- Be open to questions. Embrace transparency by addressing questions as honestly as you can, even when facing challenges. This is where your evidence as well as training on sustainability and communications will come in handy.
Effective sustainability communication requires a delicate balance between saying too much and saying too little. Yet it’s important to share your progress. People want to know about the good you’re doing: it’s good for business – and the environment.
Further information
Find out more about greenwashing and how to avoid it in our simple guide.
Use Docket to review the sustainability of your business. See where you’re doing well and learn how to share those success stories with your customers and suppliers. Identify where you can improve and get free tools and resources to help.
And if you’re interested in training on communicating sustainability, sustainability reporting or strategy, get in touch.
South Pole’s Destination Zero report, now in its fourth year, analyses insights from 1,400 sustainability executives from 12 countries and 14 sectors.
Image credit: Jelleke Vanooteghem
