Why Are Businesses Quiet on Climate Pledges?
Recent discussions have highlighted a growing trend among businesses to remain silent about their climate commitments. This phenomenon, often referred to as “greenhushing,” involves companies downplaying their climate pledges to evade potential backlash.
Understanding Greenhushing in Business
Experts say this trend is multifaceted and predates the 2024 U.S. presidential election. Initially recognized in 2022, greenhushing gained attention when the climate consultancy South Pole revealed surprising insights from their annual report. They discovered that 25% of surveyed companies had established science-based emission reduction targets but planned to keep them private.
The Evolution of Climate Commitment Communication
As time progressed, the trend of greenhushing continued to grow. In early 2024, South Pole noted that nearly half of all companies faced difficulties in communicating their climate pledges. Key factors contributing to this struggle included:
- New regulations
- Compliance requirements
- Lack of confidence in public declarations
This ongoing challenge reflects a shift in how businesses manage their climate strategies. South Pole’s latest report, focusing on financial institutions, indicated a trend where general risk statements are more common than detailed climate risk plans.
The Regulatory Landscape
Complex regulations appear to play a significant role in companies’ hesitance to disclose their climate plans. Firms often find themselves in precarious positions: they can face lawsuits for lack of transparency or over-commitment. Thus, many businesses navigate a confusing environment where the risk of communication missteps is high.
Conclusion
The issue of why businesses are quiet on climate pledges is layered and influenced by regulatory challenges rather than political motivations. As companies strive to adapt, the trend of greenhushing is likely to continue unless clearer guidelines and support are provided.
