According to the recently published Transparency Index from Connected Impact and Ringer Science, greenwashing is on the decline: only 2% of US companies over-promoted (that is, greenwashed) their ESG progress. But that might not be a cause for celebration. Instead, many are taking the opposite approach, with 58% under-promoting their progress. The report, which analyzed over 600,000 corporate communications at 200 US and UK companies across 12 months, supports previous research from South Pole.
But why are companies choosing to greenhush? It's primarily the result of more robust legislation, high-profile lawsuits and increasingly informed customers. For environmental advocates that have spent decades fighting greenwashing, this shift isn't exactly good news, with greenhushing linked to a loss of momentum (as companies become less ambitious with their targets) and less solution sharing.
Some companies are bucking the trend. Google recently revealed that its greenhouse gas emissions in 2023 were 48% higher than in 2019, with the increase mostly attributed to more energy required for data centers, a consequence of the growth of AI. It's a similar story at Microsoft, which has also gone all in with AI and seen supply chain emissions rise (in 2020, the company pledged to be carbon negative by 2030).
While these numbers aren't great, they are public. Openly acknowledging the challenges of meeting climate goals is key to creating honest dialogue around the topic. And with many brands scaling up their AI ambitions, it will be essential to keep considering the environmental impact of the shift to AI-everything, as well as potential trade-offs. So, instead of retreating into silence, are you willing to talk about your progress — or lack thereof — when it comes to emissions? Building trust through transparency isn't new, but as sustainability knowledge intersects with concerns about the pace and impact of AI, it will be even more important for brands to deliver.