Keep sharing sustainability successes and challenges

“There’s a strong focus on the sustainability of products and services of companies around the world. And that’s good news, since companies that invest to make their processes more energy-efficient and less polluting deserve recognition. Unfortunately, others engage in greenwashing, communicating about sustainable products and services yet failing to live up to these claims. In an effort to crack down on this practice, authorities in the Netherlands and more widely in Europe are introducing more regulations and controls. Environmental and consumer organisations, for their part, are quick to publicly challenge companies that make apparently false claims to sustainability. The recent complaints lodged with the Reclame Code Commissie (Advertising Code Committee) about ads run by Shell and Primark are a case in point.

Wild West

The growing focus on greenwashing is a good thing. In a Wild West context where companies can easily claim to be as green, the danger is that people will stop taking sustainability seriously. It’s crucial that consumers can trust what companies say about their commitments to the environment, since they can’t make informed decisions without the right information. But anti-greenwashing efforts can also make some companies hesitant to communicate about sustainability at all for fear of litigation and damage to their image. This phenomenon is known as greenhushing, a term first used by analysts back in 2008 to describe organisations that choose to keep their sustainability strategies under wraps. They’re wary of being branded greenwashers as a result of publicising their sustainability efforts. Sometimes they even remain silent about the targets they’ve set, since failing to meet them could be seen as a failure by the outside world.

Sustainability in silence

Those paying attention will notice that all sorts of companies opt for greenhushing. A recent survey of the communications of 1,200 organisations with explicitly defined climate ambitions in twelve countries found that a quarter of these leading players are greenhushers. These unlisted companies are moving towards net-zero operations but don’t share their aspirations or successes with the public, choosing instead to pursue sustainability in silence. The result is that we know nothing about the progress they’re making or the dillemmas and challenges they face. And that’s a real shame, since learning from one another and sharing ideas can accelerate sustainability and ensure we meet our sustainability goals that much faster.

Sharing is important

ABN AMRO advocates sharing sustainability goals, progress and lessons learned in a transparent way. This can in some cases be a challenge to us, and certainly leads to discussions within our organisation. But given that sustainability is still relatively new territory for most businesses, and we also want to help our clients in this field, we try to share as much as possible. After all, where something can be a goal, result or setback for some, it can be an good example to others or inspire them to take similar action.

Lego blocks

An interesting example I’d like to share here is Lego, which recently communicated that it would be abandoning the development of an innovative alternative material for its Lego building blocks. Originally intended to curb Lego’s use of oil-based plastics, the new material was actually shown to generate higher carbon emissions. The toy manufacturer says it will continue to experiment with other materials. Lego was applauded for publicising its decision and sharing the lessons learned through this process.

By continuously sharing the steps we’re taking and the results we’re achieving, we keep learning from and inspiring one another. And that’s exactly what we need to move forward together.”