The concepts of greenwashing and greenhushing

Abstract This article discusses how and why greenwashing (i.e. the making of untrue, misleading, or unsubstantiated environmental claims) and greenhushing (i.e. the deliberate withholding of information related to environmental performance) are increasingly impacting corporate practices and their regulation. The article first outlines different types of greenwashing, ranging from outright deceit to corporate miscommunications and wishful thinking in the setting of infeasible sustainability goals. The article goes on to discuss what drives firms to engage in greenwashing behaviour, highlighting how certain factors impact the likelihood of greenwashing, including organizational challenges (e.g. lack of coordination between a firm’s units), firm-level characteristics (e.g. size and sector), and contextual conditions (e.g. a lack of regulation). Evidence is then presented of how prevalent greenwashing has become, noting current trends. The following section focuses on the adverse consequences of greenwashing, showing how such practices expose companies to several significant risks, including reputational risks, loss of trust among employees, and litigation risks and costs. An overview is then provided of key anti-greenwashing regulation in the EU (e.g. the Empowering Consumers Directive), the UK (e.g. the Green Claims Code), and the US (e.g. the Green Guides). The final section discusses how greenwashing and greenhushing interrelate, arguing that firms increasingly refrain from making green claims or even publishing sustainability goals because they face pressure to avoid accusations of greenwashing. The prevalence of greenhushing is discussed together with an outline of the problems such practices can generate for companies and society, including impediments to transparency and assessment.