Greenhushing and The Climate Culture Shift

Why businesses are going quiet on sustainability and what it means for trust, innovation, and long-term investment.

Is climate apathy a poorly judged attempt at appearing economically savvy?

After decades of steady, if cautious, progress, the movement to integrate sustainability into mainstream business and policy is now in retreat . What was once a hallmark of forward-thinking leadership and competitive edge is, in some realms, recast as a cultural liability.

Corporate communications are growing quieter. Boardrooms that once proudly published ESG reports are opting for minimal disclosure. And in the corridors of power, climate ambition is being eclipsed by a growth-at-any-cost agenda, one that increasingly romanticises a fossil-fuelled past.

Caught between shifting political headwinds and a sceptical public, many companies aren’t abandoning their sustainability efforts, they’re simply going quiet about them. Once eager to broadcast their green credentials, corporate leaders are now treading carefully, wary of backlash and being pigeon holed into a supposedly low-growth mindset. 

This phenomenon is known as greenhushing. Unlike greenwashing, which overstates sustainability performance, involves the deliberate downplaying or total suppression of environmental progress.

This shift stems from multiple factors notably, the declining view of sustainability as a value proposition and the increasing scepticism toward green marketing claims. A European Union study in 2021, found that nearly half of the green online claims made by companies were exaggerated, deceptive, or false. In France, the national ecological transition agency ADEME, recently reported that 31% of consumers no longer trust environmental marketing claims. 

A similar mood is present in the UK. According to former Prime Minister Tony Blair, people are “being asked to make financial sacrifices and changes in lifestyle when they know that their impact on global emissions is minimal”. He said “any strategy based on either ‘phasing out’ fossil fuels in the short term or limiting consumption is a strategy doomed to fail”. His argument struck a chord with some centrist policymakers but prompted alarm among environmental leaders. “It’s defeatism,” said Holly Brazier Tope of the Green Alliance, “especially given how far renewable energy has come.”

Critics warned that Blair’s remarks could be used to justify inaction at a time when acceleration is critical. He later clarified that while he supported the transition to sustainable energy, he believed current efforts were misdirected and unlikely to deliver the intended results. 

Across the Atlantic, President Donald Trump has moved quickly to dismantle America’s climate governance. In a move that disappointed scientists, civil servants, and citizens alike, the administration dismissed all 400 contributors to the U.S. National Climate Assessment, the federal government’s flagship report on how climate change will impact everything from housing to healthcare to agriculture.

The blow was not symbolic. The NCA is mandated by Congress and has, for decades, provided the critical science used by cities, states, and businesses to prepare for climate shocks. “Senseless,” said Rachel Cleetus of the Union of Concerned Scientists, calling the decision “a hatchet” to a foundation of U.S. climate planning. “Trying to bury this report won’t alter the scientific facts one bit.”

Simultaneously, Trump’s administration shut down the Global Change Research Program, pulled U.S. participation from the IPCC, and declared a sweeping “energy emergency,” fast-tracking fossil fuel extraction and infrastructure. The Environmental Protection Agency, once a watchdog, has been rebranded as a cost-cutting economic enabler and environmental protections are being reframed as obstacles to affordability.

This is more than a policy rollback, it represents a cultural reset. One that seeks to delegitimise climate science, cast environmentalism as elitist, and reframe fossil fuels as emblems of national strength.

The private sector has also been swift to change their commitments in this new climate. JPMorgan, Citi, and Morgan Stanley have pulled out of the UN-backed Net-Zero Banking Alliance. The Royal Bank of Canada has walked away from its sustainable finance goals. BP is slashing its low-carbon investment by $500 million. Unilever has revised its plastic reduction targets. Further, Microsoft, Procter & Gamble, and other big names have been delisted by the Science Based Targets initiative for not following through on emissions pledges. Even Google, long a climate frontrunner, is changing tack and is moving away from carbon offsets and toward carbon removal solutions, while acknowledging that AI-driven data expansion is pushing emissions back up.

So is a cultural regression underway? A withdrawal not just from action, but from consensus. Greenhushing may offer short-term political advantage but longer-term it risks undermining international coordination, eroding public trust in sustainability efforts, and ultimately slowing innovation at a time when rapid progress is urgently needed.

Moreover, it would be highly misleading to say that sustainability is over as an investment proposition. 

According to UNCTAD, sustainable capital market products surpassed $7 trillion in value last year, a 20% increase. Green bond issuance hit $872 billion. In the consumer space, demand hasn’t faded, 71% still say sustainability is a priority. A PwC survey found that shoppers are willing to pay nearly 10% more for responsibly sourced goods even during a cost-of-living crisis.

As this cultural and political shift unfolds, the venture capital world continues to invest. While the overall funding climate remains tight, investors are flocking to sectors they view as economically essential or geopolitically strategic. AI continues to dominate, capturing nearly half of all U.S. VC investment in 2024. Clean tech has shown impressive resilience, particularly in carbon reduction and grid infrastructure, with startups raising a record $7.6B in Q3 2023. Defence tech is accelerating rapidly, with $31B deployed into autonomous systems, cybersecurity, and dual-use innovations. Meanwhile, sectors like HealthTech, FinTech, PropTech, and even space tech remain active, each bolstered by long-term demand and scalable models.

Against this backdrop, climate tech remains compelling. Renewables are now cost-competitive. Carbon regulation, though uneven, is tightening globally. And physical climate risks floods, fires, failed harvests are no longer theoretical. 

For investors, this moment presents both risk and opportunity. While the climate pullback may seem to validate more conservative strategies, a closer look reveals a disconnect between the rising costs of climate inaction, the volatility of fossil fuels amid geopolitical disruption, and the long-term opportunity to back the companies shaping a more resilient future.

Startups innovating in green infrastructure, energy efficiency, and emissions reduction remain fundamentally well-positioned. The rise of “hard climate tech” carbon removal, climate-smart materials, and grid technologies signals that climate investing is shifting from idealism to infrastructure.

For founders, the path forward is more nuanced. The market signal is not to retreat from climate, but to rethink how it’s communicated, framed, and embedded into business models.

This moment is as much a test of narrative as it is of execution. While the optics of sustainability may have shifted, the underlying demand for climate solutions across policy, capital, and consumers has not. Insurance premiums are rising, supply chains are wobbling, regulators are still tightening standards in Europe and Asia and consumers, especially younger ones, still expect ethical leadership.

What founders must avoid now is a performative silence. In this climate of greenhushing, your competitors may grow quieter. That’s your chance to double down on transparency, show measurable results, and position yourself as a trustworthy solution provider in an uncertain world.

This also means recognising that climate is no longer a standalone vertical. It's embedded in AI, fintech, property, mobility, health. If you're building in those spaces, climate resilience and responsibility are not features they’re risk mitigators and value drivers.

Don’t abandon the mission. Adapt the messaging.