The Reputation Institute says 91% of consumers want to engage with brands with strong CSR. This need of transparency reflects a broader trend toward corporate accountability and sustainability, driven by heightened expectations from stakeholders, investors and consumers to regulators and civil society.
Transparency, as manifested through comprehensive ESG disclosure, is seen as a mechanism for fostering trust, enhancing stakeholder engagement, and promoting responsible business practices. Yet, many companies are taking a step back and started practicing what is called “Green Hushing”.
The term green hushing was coined in late 2022 by Zurich-based consultancy South Pole, after a study the same year surveyed 1,200 private companies in 12 countries and 15 sectors on their net-zero progress. It found that 72 percent of the companies surveyed had set emissions targets in line with global climate goals. However, the study also found that one in four companies do not plan to talk publicly about their climate-related goals.
This can be explained for several reasons:
- Fear of Scrutiny: Companies may be concerned that their environmental claims could be scrutinized or criticized, especially if they are not fully meeting sustainability goals or if there are discrepancies in their practices.
- Avoiding Greenwashing Accusations: To steer clear of being accused of Green washing (making misleading claims about the environmental benefits of a product, service, or company), some organizations choose not to publicly share their sustainability efforts.
- Competitive Advantage: Some companies might view their sustainability strategies as a competitive advantage and choose to keep them confidential to prevent competitors from copying their practices.
- Uncertainty in Regulations: With evolving regulations and standards around environmental claims and sustainability reporting, companies might hesitate to communicate their efforts until there is more clarity.
- Incomplete Initiatives: Companies might prefer to remain silent about their environmental efforts until they have fully developed and implemented their initiatives to avoid premature disclosure and potential backlash if the efforts fall short.
By engaging in green hushing, companies aim to mitigate risks associated with public and regulatory scrutiny while still working towards their sustainability goals internally.
This is in my opinion very short-sighted from company’s perspective. In today’s dynamic business landscape, where consumers are more and more informed and therefore interested on how companies behave (especially in topics related to social responsibility), companies are expected to share more information.
This is not something companies can escape nor avoid.
Firstly for most large companies based in the EU or generating over EUR 150 million in EU the Corporate Sustainability Reporting Directive (CSRD) will be a mandatory open report from 2025.
Furthermore According to a study from 2022, among consumers, increasing visibility and the disclosure of information has always positive effects in the strengthening of trust among consumers. No matter is at that certain point collected data are not as positive as you might wish for, alone the facts that they have been showing and made available is a sign of responsibility and accountability.
Being trust is nowadays becoming more important than money.
But how does it have to do with digitalization? Only through digital tools and platform the process of gathering data and communicating will be enabled. Some examples:
Automation of Data Gathering: Digital tools can automate the collection of sustainability data, reducing human error and increasing efficiency. For instance, IoT devices can monitor energy usage, emissions, and resource consumption in real-time.
Centralized Data Repositories: Digital platforms can centralize sustainability data, making it easier to manage, analyze, and report.
Real-Time Reporting: Digitalization allows for real-time data collection and reporting, which can improve the accuracy and timeliness of sustainability reports.
Standardization: Digital tools can help standardize data formats and reporting structures, aligning with CSRD requirements and making comparisons across companies more straightforward
Interactive Platforms: Digital platforms can facilitate better communication with stakeholders by providing interactive and easily accessible sustainability reports.
About 66% of consumers want to know about the brands they engage with, and nearly 60% want to hear about it on social media. Rather, respondents believe brands are more effective on social media when they announce donations to specific causes (39%) and encourage followers to take specific steps to support causes (37%), such as participating in events or making their own donations.
Feedback Mechanisms: Digital tools can include mechanisms for stakeholder feedback, enhancing engagement and accountability.
So my takeaways: Digitalization is not a “nice-to-have” project in organisations, rather the very starting point to be able to comply with CSRD as well as having sustainability data more accurate, accessible, and actionable. Ultimately by leveraging digital tools and technologies, companies can achieve greater transparency, efficiency, and stakeholder engagement hence create and enhance trust.


