How the fear of greenwashing is shutting up industry and shutting down progress

Industries that are crucial for achieving net zero, like steel (11% of global carbon emissions), cement (8%) and mining (5%) are those we hear from the least. So, while we walk on pavement made of concrete, work in buildings made of steel, and use phones powered by batteries made from minerals, we are unaware of how the suppliers behind these products are responding to the climate emergency.

Comparing industrial companies with consumer-facing brands, industrial companies mention and are referenced in regard to net zero and sustainability 5.8x less on social media than consumer-facing brands (Brand24).

The good news is that, based on research by RBL Brand Agency, 93% of the firms surveyed report they are progressing towards net zero goals. So, they are committed to decarbonisation, but they talk about it less publicly.

But there is a critical gap. 79% are not communicating their full progress towards decarbonisation and 36% are actively keeping quiet for fear of greenwashing accusations. This tendency to play down progress is part of the reason we are less aware of the progress in these sectors. Industrial companies are self-censoring, anticipating the criticism and scrutiny of the media and potential legal implications. Instead of flying the flag, rallying the industry and encouraging the public, they go quiet.

This is greenhushing.

“Where organisations are making genuine progress, they shouldn’t be afraid to communicate it”

The number of greenwashing lawsuits brought against corporations is increasing. The CMA can fine companies up to 10% of their global revenue if found guilty. The consequences for greenwashing are serious, but industrial companies are making progress. Gillian Daines, Global Head of Corporate Communications for OCI Global says, “Where companies are making genuine progress, they shouldn’t be afraid to communicate it.” However, survey respondents rated their confidence levels when communicating net zero and sustainability topics on behalf of their employer at only 55/100.

Why is confidence so low?

Changing employer perception is critical to improving confidence and communication

Industrial companies in this transition need to shift how they see themselves before their employees feel confident speaking about net zero and decarbonisation. These companies have long histories of traditional industry when carbon emissions weren’t even considered. This legacy isn’t easy to change. It undermines employee confidence when putting forward a message about net zero or decarbonisation.

The only way to improve confidence is to change how the organisation sees itself. If the board has agreed on a decarbonisation plan, this new direction of travel should be integrated into the core of the organisation – the brand. This way, everyone at every level feels backed by the brand and aligned with the official position.

By engaging employees in this process, co-creating a new identity together that incorporates decarbonisation, and then building a new identity, these legacy companies can bring the brand up to speed with their current state and future ambitions.

How greenhushing holds back progress

Does this lack of confidence and communication mean less progress? 80% of respondents indicated they thought greenhushing was more of a deterrent to progress than greenwashing for these reasons:

  • it slows momentum by silencing good examples
  • it inhibits collaboration
  • it keeps the public in the dark
  • it prevents penetration of global markets

And this is a self-perpetuating cycle – a corporate psychological “doom loop”. The lack of confidence leads to less communication, which leads to less collaboration, which leads to less progress, which leads to less confidence, and so on.

However, this negative cycle turns positive by fixing the issue at the centre. A clear sustainability story built into the core of the brand forms a platform for every employee to feel confident and credible. This increases communication, collaboration, and progress, which fuels more of the same.

The opportunity for net zero leadership

There is an opportunity here for net zero leadership. By building an honest sustainability story into the core of the brand these industrial companies could come out of the shadows, lead the conversation, and set an inspiring example of how “dirty” companies are transitioning to clean(er) ways of working.

This is what most greenwashing watchdogs are looking for. During a transition, we don’t expect perfection. We do want honesty. This should give companies who are making credible progress an advantage. Communicating more progress may help us achieve net zero faster and make us all more confident in the corporate response to this global crisis.

To view the full Greenhushing Report, click here.

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