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Greenwashing fears: Businesses wary of ‘over-promoting’ sustainability progress

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on edie or enjoy below:

🗞️ Driving the news: Two-thirds of large businesses in the UK and USA are under-promoting their sustainability progress due to greenwashing fears
• A review of over 600,000 corporate communications revealed that only 5% of environmental claims were seen as "over-promotion"
• Companies prefer detailed annual data disclosures over public-facing marketing claims

🔭 The context: With increasing consumer awareness and potential repercussions, businesses are cautious to avoid accusations of greenwashing
• Regulatory frameworks like the UK's green claims code and the upcoming EU directive banning misleading green claims are pushing companies towards transparency
• This caution has led to a trend called 'greenhushing'

🌍 Why it matters for the planet: Under-promoting genuine sustainability efforts can hinder broader environmental progress
• Transparent sharing of successful initiatives is essential to empower other organizations and drive collective climate action

⏭️ What's next: As regulatory scrutiny intensifies, businesses must balance caution with effective communication of their sustainability progress
• The adoption of transparent reporting could become a competitive advantage in attracting ESG-minded investors and customers

💬 One quote: "ESG Transparency is currently a missed opportunity for the top 200 businesses in the UK and US
• We know most consumers favour responsible brands and transparent businesses," said Dr. Lucy Walton, Connected Impact’s chief executive

📈 One stat: Almost two-thirds (63%) of environmental progress points reported by the FTSE100 were not promoted, with the US proportion even higher at 67%

Click for more news covering the latest on corporate sustainability

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