New research from Connected Impact says that almost two-thirds of FTSE 100 companies are at risk of greenhushing because of concerns about corporate greenwashing.

Connected Impact’s Transparency Index 2024 report reviewed over 600,000 corporate communications from 200 companies to identify transparency gaps between what businesses communicate on social media about ESG topics, and what they disclose about their targets and performance.

The findings show 63% of FTSE 100 companies under promoted and disclosed more factual data on ESG than they promoted. The report claims that companies may be hesitant to promote their legitimate ESG credentials due to fears of greenwashing accusations. This puts them at risk of “greenhushing” – where organisations choose not to publicise details of their climate targets, or their plan to reach their targets, to avoid scrutiny and allegations of greenwashing.

Only just over a third (35%) of the FTSE 100 offered a “balanced” picture, with a minimal transparency gap. The report examined emissions, ethics, diversity and inclusion topics to represent E, S and G criteria. Social disclosures had the largest gap, with 71% of companies disclosing more on diversity and inclusion than they communicated. While governance had the smallest gap, with 45% of companies having a balance between their ethics discloses and communications.

Dr. Lucy Walton, CEO of Connected Impact, said, “Businesses are under mounting pressure to avoid greenwashing – with increasing regulation and potential fines for those who misrepresent legitimate ESG efforts. But businesses must also take action to avoid ‘greenhushing’. Our data reveals that businesses are more likely to under-promote than over-promote their ESG initiatives. This cautious approach can deter investment and undermine credibility.

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