‘Greenhushing’ on the Rise as ESG Backlash Grows

Donald Trump’s win at the 2024 Presidential elections and his subsequent swearing in has seen America’s landscape begin to change, a shift that may also affect the world at large by minimizing focus on environmental policies and placing fossil fuels at the center of the discussion.

This change is taking place alongside green hushing, which has influenced how many firms communicate, especially in the energy sector.

So, what is greenhushing?

This is when an organization or firm stays quiet about or downplays their sustainability practices and environmental efforts, despite making positive progress for the environment. Companies may avoid any discussions about their efforts to reduce their environmental impact mainly to prevent any criticism or avoid being accused of greenwashing.

A report published by The Carbon Trust in 2023 found that almost 25% of corporate directors recorded decreased communication about their ESG initiatives because of social and political pressures.

Greenhushing in the U.S. gained a foothold during Trump’s previous term, where he strongly supported fossil fuel producers and even pulled out of the Paris Climate Agreement. Following his swearing-in last week, Trump signed an executive order to once again withdraw the United States from this accord.

Among other actions his administration plans to take, Trump also revealed that they would dismantle the Inflation Reduction Act, which allocates funds for the development of renewable energy technologies. This has seen major energy firms adopt a more low-key approach to their ESG initiatives.

For instance, ExxonMobil revealed recently that it’d be amending its investment plans in low-emission tech and placing more focus on gas and oil development projects. This comes after the firm announced its targets to reduce carbon emissions by using advanced carbon capture technologies.

The financial sector is also being affected by growing ESG backlash, with estimates showing that in 2024, investments in ESG funds in the U.S. dropped by almost 15% in comparison to 2023. Funds committed to ESG sustainability have begun bowing to the pressure. BlackRock, the biggest asset manager globally, announced that it’d be revising its ESG strategy following criticism from both conservative groups and environmentalists.

The firm’s CEO, Larry Fink, revealed that while they were still committed to sustainability, political pressure was complicating investor discussions.

While America backtracks on ESG though, other countries continue to make progress on their ESG policies. For example, China has invested heavily in renewable energy, with the country’s installed solar capacity representing nearly 40% of the global total.

Experts believe that American firms which decrease investment in sustainable tech may struggle to compete in a global economy that is steadily aligning with sustainability principles. Firms like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) that have selected to embrace ESG are unlikely to backtrack even if politics muddles discussions around this subject.

NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF

About ESGWireNews

ESGWireNews (“ESG”) is a specialized communications platform with a focus on the Environmental, Social and Governance (ESG) sector and public companies committed to sustainable corporate practices. ESGWireNews is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, ESG is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, ESG brings its clients unparalleled recognition and brand awareness. ESG is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from ESGWireNews, text “ESG” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.ESGWireNews.com

Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer

ESGWireNews
Los Angeles, CA
www.ESGWireNews.com
310.299.1717 Office
Editor@ESGWireNews.com

ESGWireNews is powered by IBN