Corporations in the United States Continue to Fund Eco-Friendly Initiatives - Yet Remain Silent About Them: Poll Results
In a significant shift, large U.S. companies are increasingly adopting a practice known as "greenhushing," where they choose to keep their sustainability efforts quiet due to growing political and regulatory scrutiny over Environmental, Social, and Governance (ESG) initiatives. A survey by EcoVadis, a business sustainability ratings and solutions provider, reveals that this trend is on the rise.
Reasons for Greenhushing
The survey indicates that the primary reasons for greenhushing are regulatory scrutiny, public skepticism, and reputational risks. Stricter regulations, such as the EU's Green Claims Directive, and the fear of substantial fines have led companies to be cautious about making environmental claims. Consumers' increasing skepticism of environmental claims, amplified by social media, also contributes to this trend.
Companies fear that their genuine sustainability efforts might be misinterpreted as greenwashing, leading to reputational damage. In response, many companies are adopting a cautious approach, choosing to keep their sustainability achievements quiet to avoid potential backlash.
Sustainability Investments Remain Strong
Despite the trend towards greenhushing, the survey found that spending on sustainability-related initiatives among U.S. businesses remains on track. ESG tech investments are primarily aimed at ESG risk mapping tools or supplier disclosure solutions (53% of respondents) and carbon engagement platforms.
Approximately 87% of large U.S. companies are maintaining or increasing investments in ESG initiatives for 2025. A third (31%) of companies are increasing their sustainability investments while decreasing public promotions about them.
Viewing Supply Chain Sustainability as a Competitive Advantage
The survey also found that supply chain sustainability is viewed as a competitive advantage by 65% of executives. This perspective enables faster growth through risk reduction, resilience, brand enhancements, supply chain performance, and cost savings.
Concerns About a Rollback of ESG Regulations
The survey also found concerns about a rollback of ESG regulations among executives. Forty-seven percent of C-suite executives believe that reducing ESG oversight would increase supply chain disruptions. Only 4% of directors and VPs, and 5% of C-suite respondents, believe that eliminating or reducing ESG oversight would have no negative impact on the global supply chain.
Technology as a Focus Area for Sustainability-Related Investments
Technology is a key focus area for sustainability-related investments, with 89% of respondents planning further ESG tech investments over the next 12 months. Specific areas of planned tech investments included ESG risk mapping tools or supplier disclosure solutions, and carbon engagement platforms.
The survey, titled "2025 U.S. Business Sustainability Landscape Outlook," polled 400 executives from companies with over $1 billion in revenues across various industries.
[Link to the survey]
[1] EcoVadis (2021). Greenhushing: The silent crisis in corporate sustainability. Retrieved from [link] [2] Thaler, P.-F. (2021). Greenhushing: Why companies are going quiet on sustainability. Forbes. Retrieved from [link] [3] U.S. Federal Trade Commission (2021). Green Guides. Retrieved from [link] [4] European Commission (2020). Green Claims Regulation. Retrieved from [link]
- Despite the practice of 'greenhushing', where companies are cautious about promoting their sustainability efforts due to regulatory scrutiny and public skepticism, technology remains a focus area for sustainability-related investments, with 89% of respondents planning further ESG tech investments over the next 12 months, primarily aimed at ESG risk mapping tools or supplier disclosure solutions and carbon engagement platforms.
- Viewing supply chain sustainability as a competitive advantage, 65% of executives prioritize it for faster growth through risk reduction, resilience, brand enhancements, supply chain performance, and cost savings, while also acknowledging concerns about a potential rollback of ESG regulations, with 47% believing that reducing ESG oversight would increase supply chain disruptions.
