Author: Geoff Cooper
Head of Investment Management, Chartered Wealth Manager - Chair of the Investment Committee
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Published: March 2025
For years, investors and regulators have been focused on combating greenwashing – the practice of companies exaggerating or misrepresenting their environmental credentials to appear more sustainable than they really are. But now, a new and unexpected trend has emerged: greenhushing.
Greenhushing is the opposite of greenwashing. Instead of overpromoting their green initiatives, many companies are now choosing to stay silent about their sustainability efforts. They are removing references to climate goals from annual reports, toning down environmental claims in public announcements, and even stripping sustainability policies from their websites. This shift is happening across industries and geographies, driven by both political and regulatory pressures.
What has caused this new phenomenon?
The motivations behind greenhushing vary by region:
In the US, with the return of Donald Trump to the White House, the political climate has shifted. Many companies developing green technologies now avoid discussing climate change to sidestep political scrutiny. Instead, they emphasise job creation, economic growth, and innovation – all very commendable of course, but keeping sustainability efforts in the background.
In the UK and Europe, fear of greenwashing penalties is driving the change of attitude. Companies are wary of being accused of misleading environmental claims, as regulators crack down on greenwashing. In the UK, for example, the Competition and Markets Authority (CMA) has been granted enhanced powers to impose penalties of up to 10% of a company’s global turnover for misleading environmental claims. In response, many firms would rather say nothing at all than risk making a statement that could be challenged.
A recent study by Connected Impact* found that 63 of the UK’s 100 largest publicly listed firms underpromoted their environmental efforts in 2024. In the US, 67 of the largest 100 publicly listed firms were found to be greenhushing.
The Implications for Ethical Investors
For investors focused on sustainability, greenhushing presents a challenge. If companies stop openly discussing their environmental strategies, it becomes harder to assess which businesses are genuinely committed to sustainability and which are simply going silent for convenience.
However, at MM Wealth our ethical investment approach remains unchanged. We continue to apply a clearly defined set of exclusions – avoiding so-called “sin stocks” for example – and prioritise companies with solid sustainable and green credentials. To us, firms with strong ESG principles are not simply marketing an image; they are demonstrating good risk management and long-term resilience. Companies that are serious about sustainability tend to have strong governance, responsible leadership, and robust operational practices, all of which are indicators of quality businesses, regardless of how loudly they choose to advertise their efforts.
Greenhushing is a reminder that true sustainability is about more than just words, it’s about actions. As investors, we must continue to scrutinise businesses, assessing them on their financial resilience, operational transparency, and ability to navigate both environmental and economic challenges.
While the market may be shifting in how sustainability is communicated, our investment principles remain firm: companies with strong ethical and sustainable foundations are better equipped to manage long-term risks and deliver sustainable returns.
As ever, if you would like to discuss your investments, please do not hesitate to contact us on 01223 233331 or email info@mmwealth.co.uk.
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* The figures are derived from the Transparency Index 2024 report, published by data insights company Connected Impact in collaboration with Ringer Sciences. This comprehensive study analysed over 600,000 corporate communications from 200 companies, including the UK’s FTSE 100 and the 100 largest public and private companies in the US. The findings revealed that approximately 63% of the UK’s largest publicly listed firms and 58% of major US companies are underpromoting their environmental and sustainability efforts, the phenomenon now referred to as “greenhushing.”
Disclaimer
Opinions constitute our judgment as of this date and are subject to change without warning. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment.
The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.
The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.
