Glossary

Greenwashing is when brands conceal their sustainability goals and ambitions. The reason: they are afraid of not achieving the goals they have set and being accused of greenwashing as a result.

What exactly does greenhushing mean?

The term greenhushing means "green concealment". It has been around for several decades. However, it is currently gaining in importance because the topics of sustainability and greenwashing are attracting a lot of attention.

In addition, the EU has passed the "Greenclaim Directive" to curb greenwashing. The EU requires companies to prove so-called green claims - i.e. statements that suggest sustainability, such as "ecological" or "environmentally friendly" - using current scientific standards. Citizens must have direct access to information that explains the improvements.

The aim of this directive is absolutely right, it provides more orientation and clarity - but it also unsettles companies because they do not know what exactly they are allowed to communicate and how. That's why, when in doubt, some prefer not to communicate anything, even if they do a great job.

Why are companies greenwashing?

Around a quarter of all brands conceal their sustainability goals and ambitions: They avoid the topic of sustainability, refuse to comment or don't act at all. The reason for this is usually the fear that they will fail in this task and not achieve the required goal.

An even greater driver of this fear is being accused of greenwashing as a result. Whether rightly or wrongly, the consequences of such accusations can mean the end for a brand.

Some consumers may be of the opinion that financial success and sustainable business practices are contradictory. This is why particular caution is required in sustainability communication. It should make it clear: Economic success in particular is the stable basis for change and a real impact.

What helps against greenhushing?

This is what we recommend to companies to get out of the greenhushing trap:

• Develop a credible sustainability focus for your brands that you can maintain in the long term and use for communication.
• Design your sustainability strategy in such a way that it focuses on a specific, special topic - or a combination of several topics.
• Make sure that the topics are in line with the brand values and brand positioning.

Greenhushing damages the brand

When a brand disguises its commitment to sustainability, it hides its true identity and loses authenticity. It is crucial that it discloses its commitment and all background information: It is only through this transparency that it is credible and only then will it succeed in creating a long-term bond with customers - and ultimately success.

A company's commitment to sustainability is also relevant for the employer brand, and both employees and applicants are paying more attention to this. If they are not satisfied with this, they could respond with "climate quitting".

Sustainability communication: please be open, honest, step by step

The following also applies to sustainability efforts: top performance is the basis for success.We recommend communicating sustainable measures only after initial top performance has been achieved.It is better to publish smaller successes step by step in brand communication than big, unrealistic goals that may disappoint and annoy people.Brands should always be clear about the goal they are working towards in their sustainability efforts.They should always communicate transparently that the brand is on the way there.

Brands should report on this when it comes to sustainability:

• What measures have already been successfully implemented?
• Why do the chosen measures suit the brand? How do they contribute to this?
• What challenges were there during development?

In order to protect themselves from accusations of greenwashing, brands should not hide anything, but rather keep their customers openly and honestly informed and take them on the journey with them, step by step.

This is only possible with the courage to be transparent, even when mistakes or failures occur.Instead of covering them up or hiding them, brands should deal with them openly.They should show what they have learned from mistakes and how they intend to avoid them in the future.

This is our conviction at BrandTrust: it is never right to conceal your performance in any situation.How and with what you inform your customers about this must, of course, match the brand. Companies should definitely communicate their efforts for more sustainability, because every industry needs role models. They inspire and ultimately change the markets.

Example Lego: Transparency includes openly admitting mistakes

Lego knows that as a plastic toy manufacturer, it is not easy to position itself credibly with sustainability issues. However, the brand is known for its strong customer focus and innovative spirit.For example, the brand worked with children around the world to develop a "building manual for a better world".Lego has also invested heavily in research into sustainable materials in recent years.

In some cases, the brand has been able to develop better alternatives, for example for packaging and additional accessories.However, it had to admit that the research into rPET plastic was in vain because it does not contribute to reducing carbon emissions.

This honesty contributes to Lego being the most valuable toy brand in the world.

Example Oatly: The oat drink brand runs a special website for criticism

The oat drink brand Oatly is committed to climate protection and fights for people to consume fewer animal products and more plant-based products instead. Because its opinions are very strong, it repeatedly encounters fierce resistance.

She has dedicated her own website to these hurdles: fckoatly.com. There, fans and enemies can find out everything there is to criticize about Oatly.

With this website, the company openly demonstrates that it hides nothing and regards mistakes made as valuable in order to bring about positive social change.

Find out more:

• Study: Impact Brands