Shelton Stat of the Week
72% of people we surveyed from around the globe say they are very/extremely interested in hearing from companies about their efforts to reduce GHG emissions. – Global Eco Pulse® 2023
Have you heard this one: greencrushing. It came across my radar for the first time a few weeks ago. I’m not sure it’s going to stick, but exploring it can be a valuable thought experiment. So, I’m going to start this article off like a middle school book report. Hang with me…
For our thought experiment today, greencrushing is defined as the use of political or financial power to penalize businesses for their sustainability or diversity efforts (or for talking about them, at least).
So, where’s the natural direction to run when feeling the crush? Greenhushing, of course. In our current political environment, some companies are being less than enthusiastic about their sustainability work. The fear is palpable. And the instinct to put your head down and be quiet is understandable.
But greenhushing isn't just a missed opportunity, it’s a strategic blunder that can sink your business. It's like having a winning hand at poker and folding because you're scared of a bluff. And, in the game of modern business, sustainability can be the royal flush.
Let’s strip away the political noise for a minute and focus on what truly drives business success: increased revenue and competitive advantage. The fact is, sustainability efforts aren't just feel-good initiatives; they are smart business investments with demonstrable returns.
The ROI is loud and clear:
Carbon reduction often forces a deep dive into your operational inefficiencies. Where is energy being wasted? Where are processes clunky? This scrutiny leads to leaner, more efficient operations, reducing resource consumption and improving overall productivity. Your business becomes more agile and responsive and saves money.
Supply chain resilience means scrutinizing your supply chain for vulnerabilities. This can lead to more localized sourcing, diversified suppliers and a deeper understanding of your environmental risks, ultimately building a more robust and cost-effective supply chain.
Energy efficiency is a payback monster. We're talking about strategic investments with rapid payback periods and long-term savings. When you invest in energy-efficient machinery, optimize your operations or switch to renewable energy sources, you’re not just lowering emissions; you’re drastically slashing your energy bills. Companies have reported up to 20% savings in energy costs through decarbonization and energy efficiency efforts alone. Imagine what an extra 20% in your operational budget could do. Your CFO is going to send you flowers!
Energy-efficient buildings and infrastructure also command higher market values. They're more attractive to tenants, investors and even potential buyers: tangible assets that add to your company's valuation.
Even waste reduction can have a huge ROI. Landfill fees, waste collection and incineration costs are significant expenses for many businesses. Reducing waste at the source directly slashes these costs. It's like finding money in your dumpster.
One more time, all together now: the risks of greenhushing
Beyond the undeniable financial benefits, there are significant risks to greenhushing that far outweigh the perceived safety of silence.
- Loss of consumer trust: Today's consumers, especially those in younger generations, are increasingly discerning. They want to align with brands that reflect their values. If you're doing great things but keeping quiet, they'll either assume you're doing nothing, or worse, that you're hiding something. This erodes trust and can lead to a significant loss of market share.
- Talent attrition and acquisition challenges: The best and brightest talent seeks out companies with a purpose. Employees, particularly millennials and Gen Z, want to work for organizations that are making a positive impact. Greenhushing makes you less attractive in the talent market.
- Investor scrutiny: ESG investing is not going anywhere, even if we don’t use the acronym anymore. Investors are increasingly looking at a company's sustainability performance as a key indicator of long-term risk and opportunity. Greenhushing can make you seem less transparent, less resilient and ultimately, less investable.
- Missed innovation opportunities: When you actively embrace sustainability, it fosters a culture of innovation within your organization. Employees are challenged to find more efficient, less impactful ways of doing things, leading to new products, processes and competitive advantages. Greenhushing stifles this innovation.
- Competitive disadvantage: While you're hushing, your competitors might be shouting. They’ll be capturing market share, attracting top talent and securing favorable investment. In the long run, silence puts you behind the curve.
None of that sounds fun, does it? That’s where companies that succumb to greencrushing are headed.
The political winds may shift, but the fundamental drivers of sustainable business — like cost savings, risk mitigation, innovation and consumer demand — are only growing stronger. Greenhushing might seem like a pragmatic response to greencrushing, but it ultimately undermines your long-term success.
Instead of hiding, lean into the tangible benefits. Talk about the dollars saved, the efficiencies gained, the innovations sparked. Frame sustainability inside your organization and with your investors not as a burden or a political statement, but as a smart business strategy.
Go for a strategic, transparent and authentic approach to communicating your sustainability story. Don't greenwash, but don't greenhush either. Show how carbon reduction leads to streamlined operations. Illustrate how energy efficiency cuts overhead. Highlight how waste reduction programs drive down costs and drive up operational efficiency. Make it undeniable that being green isn't just good for the earth. It's good for the bottom line.