US firms engage in Environmental, Social, and Governance (ESG) investments, although they often remain discreet about these practices.

In a recent analysis by EcoVadis, it was revealed that the majority of financial leaders in American companies with a turnover of over a billion dollars consider sustainability a growth engine, with 52% viewing it as such [1]. This sentiment persists despite a potential slowdown in ESG (Environmental, Social, Governance) policies in the United States.

However, the report also highlighted a concerning trend known as greenhushing, where companies deliberately downplay or withhold communication about their environmental efforts. This silence is primarily driven by the fear of being accused of greenwashing, political polarization around ESG issues, and concerns over potential legal and reputational risks [1][3].

This strategic communication shift creates barriers to building trust, gaining competitive sustainability advantages, and accelerating environmental progress.

Reduced transparency and trust: Greenhushing limits the visibility of genuine sustainability efforts, which undermines trust among consumers and investors who rely on clear information to make choices [2][3].
Lost market and reputational benefits: By not actively promoting their climate-positive initiatives, companies diminish their green identity, reducing their influence and ability to attract sustainability-focused customers and partners [2].
Hindrance to environmental progress: The reluctance to communicate results in fewer incentives for adopting broad sustainable practices, which may slow overall sectoral and societal progress toward climate goals [2].
Potential short-term financial advantage vs. long-term risk: While avoiding greenwashing accusations can reduce immediate regulatory or litigation costs, companies that practice greenhushing often miss out on attracting long-term investors and outperforming competitors who are transparently engaged [2].
Strategic withdrawal from climate leadership communication: Companies continue investments but "walk the walk without talking the talk," which may reduce public pressure or competitive push for more ambitious climate action [1].

Key reasons and impacts from the sources include:

| Reasons for Greenhushing | Impacts on Competitiveness & Sustainability | |------------------------------------------------|----------------------------------------------------------------| | Fear of greenwashing accusations | Loss of consumer and investor trust | | Political polarization and anti-ESG sentiments | Reduced green identity and market differentiation | | Risk of litigation and media backlash | Reduced transparency and slow progress on climate goals | | Navigating polarized stakeholder expectations | Missed financial gains from sustainable investors | | Strategic communication caution | Less influence on industry and competitor sustainability norms |

Despite these challenges, the analysis suggests that US companies view sustainability as a key factor in their competitiveness. ESG pillars remain a competitive element for US businesses, according to business executives. In fact, 62% of directors and vice-presidents, as well as 59% of C-suite executives, believe sustainability helps attract and retain customers [1].

Moreover, 65% of executives believe that the sustainability of the supply chain represents a real competitive advantage [1]. As a result, companies are investing in technologies to strengthen supply chains, manage risks, and foster growth and resilience. In 2025, 87% of companies have maintained or increased their investments in sustainability [1].

Interestingly, while 31% of executives are increasing investments, they are reducing public communication about their sustainability efforts, a phenomenon known as "greenhushing" [1]. This discreet approach to public communication about sustainability is concerning, as it may hinder the progress towards a more sustainable future.

However, it is encouraging to note that the majority of companies continue to prioritize corporate sustainability, with only 7% of interviewees having reduced their sustainability efforts [1]. This commitment to sustainability is a positive sign for the future of corporate responsibility and environmental progress in the United States.

References:

[1] EcoVadis. (2025). 2025 U.S. Business Sustainability Landscape Outlook. [2] Harvard Business Review. (2025). The Rise of Greenhushing: Why Companies Are Silent About Their Environmental Efforts. [3] Forbes. (2025). Navigating the Greenhushing Trend: Strategies for Transparent Sustainability Communication.

The trend of greenhushing, in which companies withhold communication about their environmental efforts, hinders the visibility of genuine sustainability efforts and undermines trust among consumers and investors [2].
Companies practicing greenhushing may miss out on financial benefits such as attracting long-term investors and outperforming competitors who are transparently engaged, despite avoiding potential immediate regulatory or litigation costs [2].
Despite the concern of greenhushing, US companies view sustainability as a crucial competitive factor, with 62% of executives believing that it helps attract and retain customers [1]. As a result, many companies continue to invest in technology to improve supply chain sustainability and resilience [1].