Greenwashing to Greenhushing: The impact on the sustainability recruitment market

Greenwashing to Greenhushing: The impact on the sustainability recruitment market

Sustainability has undeniably became a key driver and focus of corporate strategy, shaping everything from investment decisions to consumer loyalty. However, as more companies pursue environmental, social, and governance (ESG) initiatives, they are increasingly scrutinized for their efforts, often facing accusations of “greenwashing.” This is leading to an emerging phenomenon known as “green-hushing,” where companies intentionally downplay or even retreat from their sustainability efforts to avoid accusations of insincerity or legal repercussions. As this trend continues, at EnableGreen, we observe that while the sustainability job market is growing, it is also shifting towards a compliance-focused and minimalist approach as companies navigate the risks and responsibilities of sustainability within an increasingly complex regulatory environment.

What are greenwashing and green-hushing?

Greenwashing refers to companies exaggerating or misrepresenting their environmental efforts to appeal to consumers, investors, or regulators without backing their claims with substantive action. KPMG defines greenwashing as an unstatic concept – it occurs on a spectrum, ranging from outright deceit to wishful thinking. This has led to a wave of lawsuits and regulatory actions, particularly in industries like fashion, finance, and consumer goods, where misleading sustainability claims have been rampant. Another similar concept is Greenwishingor unintentional greenwashing, describes a practice where a company hopes to meet certain sustainability commitments but simply does not have the wherewithal to do so. Driven by the pressure to set ambitious sustainability goals, companies can find themselves committing to targets that they cannot realistically achieve, perhaps because of financial, technological or organizational constraints. Failing to achieve these targets can undermine trust in these companies and in the broader system.

On the oher hand, Greenhushing or Green Hushing describes companies that hesitate to set ambitious public sustainability goals—or even scale back on existing ones—due to fears of being labeled as greenwashers. This trend is often accompanied by reduced transparency and communication, also called green silence about sustainability efforts, as companies seek to avoid the regulatory and reputational risks associated with publicizing their environmental initiatives.

The impact of green-hushing on the sustainability job market

​The rise of green-hushing in the last 2 years is having a marked effect on the sustainability job market, with companies becoming more cautious about hiring for ESG roles. For example, major banks and corporations have reduced their hiring targets for sustainability roles due to concerns about overreporting and compliance burdens. Rather than proactively advancing their sustainability agendas, these companies are scaling back, focusing instead on mitigating risks.

​Industries are scaling back on sustainability hiring

  1. Financial Services: Banks have faced significant scrutiny over their sustainability claims, especially regarding green financing and ESG investments. Firms like HSBC and Deutsche Bank have faced criticism and legal action for allegedly overstating their green credentials. As a result, some banks have scaled back their hiring for sustainability roles, wary of the risks of greenwashing allegations. Instead, they are focusing on regulatory compliance rather than ambitious sustainability growth, shifting some sustainability-related hiring to legal and compliance teams rather than core sustainability functions.
  2. Energy Sector: Energy giants have long been criticized for greenwashing, particularly when promoting “clean energy” initiatives that are often dwarfed by their fossil fuel investments. Shell and BP have faced lawsuits and backlash over their environmental claims. Shell, for instance, has been challenged by multiple environmental groups, prompting the company to adopt a more cautious public stance on its sustainability initiatives. While these companies still invest in ESG roles, the focus has shifted more towards risk mitigation, environmental compliance, and careful regulatory adherence rather than aspirational sustainability transformations.
  3. Consumer Goods and Retail: Retail and consumer goods companies are often in the spotlight for sustainability claims, especially around eco-friendly packaging, ethical sourcing, and carbon neutrality. Brands like H&M and Nestlé have faced greenwashing accusations, leading to lawsuits and regulatory inquiries. In response, these companies have adjusted their hiring priorities, with fewer open roles for sustainability strategists and more focus on ESG regulatory compliance Specialists and ESG reporting experts to avoid further allegations.


​Examples of Companies Scaling Back Due to Greenwashing Concerns

  1. HSBC: HSBC announced in 2022 that it would shift some of its sustainability hiring focus from growth roles to compliance and risk management. The bank faced criticism from both investors and regulators over its green credentials, especially regarding its financing of fossil fuel projects. This shift is an example of how greenwashing fears can push companies to pull back on ambitious sustainability hiring, opting instead for roles that mitigate legal and regulatory risks.
  2. H&M: The fast-fashion giant has been sued for greenwashing related to its “Conscious” line, where it was accused of making exaggerated claims about the sustainability of its products. Following the lawsuit, H&M has been more reserved in publicizing its sustainability goals and has adjusted its hiring focus to strengthen internal compliance. This shift reflects the company’s concern over greenwashing accusations and its cautious approach to future sustainability initiatives.
  3. Nestlé: Nestlé has been targeted for allegedly overstating its environmental initiatives, particularly around plastic reduction and water management. In response to greenwashing claims, the company has reportedly scaled back its sustainability hiring, opting to prioritize regulatory and legal expertise over sustainability innovation roles. Nestlé’s experience underscores how greenwashing fears can reshape corporate hiring strategies, often reducing opportunities for professionals focused on proactive sustainability transformations.

The consequences of greenwashing and green-hushing

Green-hushing and greenwashing both undermine the potential of sustainability to drive value and transformation within organizations. When companies avoid transparency or fail to commit to meaningful ESG targets, they not only miss out on the financial and reputational benefits of sustainability but also weaken their ability to attract top talent in the field. As companies become more risk-averse, the growth of the sustainability job market is stunted, limiting opportunities for skilled professionals eager to make an impact.

The Broader Impact on Business and Society
Green-hushing, in particular, represents a missed opportunity. By avoiding public commitments to ambitious sustainability goals, companies are not only reducing their potential positive impact on the planet but also eroding trust among stakeholders, from consumers to investors. This hesitation can create a vicious cycle where companies are reluctant to innovate for fear of accusations, and as a result, sustainability progress stagnates.

Moreover, the reduction in sustainability hiring has ripple effects across industries. With fewer senior sustainability roles, the pool of qualified ESG leaders shrinks, creating a talent gap that may hinder long-term sustainability progress. For industries under intense pressure to improve their ESG performance, green-hushing can lead to a reactive rather than proactive approach, focusing on damage control rather than creating substantial value for the business and the world.

 

How companies can avoid greenwashing or green-hushing?

To avoid the pitfalls of greenwashing and green-hushing, a few strategies can be implemented, here are a few examples. ​
  • Adopt transparent and realistic goals: Companies should set transparent, measurable, and realistic sustainability goals. Rather than exaggerating their achievements, companies can build credibility and trust, an dutltimately value by being honest about their challenges and progress.
  • Stay abreast of regulation changes: Keeping up with the evolving regulatory landscape, recognizing that compliance with both new and existing regulations can mitigate the risks of inaccurate reporting. However, this  demands significant time, effort, and qualified resources understanding the intricacies and rapid evolution of ESG Frameworks.
  • Invest in compliance and innovation: Balancing compliance and innovation is key. Companies should hire sustainability professionals who understand both regulatory frameworks and the strategic potential of ESG to create long-term value. This can enable organizations to move beyond mere compliance and leverage sustainability as a driver of growth.
  • Plan for potential greenwashing risks, acknowledging that perceptions surrounding carbon offsets, renewable energy certificates, and other emissions reduction tools are evolving. Strategies that support targets today may expose companies to greenwashing allegations in the future as standards and expectations evolve. Implementing or integrating ESG into the Enterprise Risk Management tool can help in anticipating and measuring potential negative impact of regulatory changes.
  • Engage stakeholders in a meaningful dialogue: Rather than pulling back on public commitments, companies should focus on engaging with stakeholders in a transparent and constructive way. Communicating on their goals and the rationale behind their sustainability strategies, businesses will help foster market trust and avoid accusations of greenwashing.
To conclude on this topic, the trends of greenwashing and green-hushing underscore the challenges and complexities in today’s sustainability landscape. While green-hushing may help companies avoid accusations in the short term, it also prevents them from fully capitalizing on the value-creation potential of sustainability. As a result, the sustainability job market, especially for roles like Chief Sustainability Officer and Director of Sustainability, is undergoing a transformation (see our last article onChief Sustainability Officer market trends, with companies increasingly cautious about public commitments and ambitious targets.

For companies to thrive in a world that demands both accountability and action, a balanced approach is essential. By hiring the right talent, setting transparent goals, and engaging stakeholders honestly, companies can avoid the pitfalls of both greenwashing and green-hushing, driving meaningful sustainability impact and substantial value that benefits the business, its stakeholders, and the planet. In our next article EnableGreen explores Why does ESG and sustainability practices need more than complying with regulation?​Author: Hayatte Loukili

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Who we are and What we do

We are an exclusive Sustainability and ESG Executive Search and Recruitment Agency, offering both permanent and temporary contracts recruitment solutions, across all sectors. We assist employers find their next great hire in ESG and Sustainability Integration/ Green Energy & CleanTech/ Responsible Investment, Sustainable Finance & Impact Investing.

The Paris Agreement at COP21 identified capacity building as a core challenge our governments, institutions, organisations and civil society need to overcome to build a sustainable world.
Companies need to build business strategies and develop activities to keep growing and create value for their shareholders without exhausting resources or harming future generations. Therefore, engaging in building a decarbonised and equitable economy is at the core of their mission and success in the long term. Their ability to build resilience of human and ecological systems will enable them to navigate this ever-evolving world.
As a recruitment agency, we truly believe, we have a substantial part to play in equipping those thriving businesses with the best candidates to conquer those challenges.
Our purpose is to support businesses in their sustainability journey by connecting them with the best talents in the ESG and Sustainability job market.
We focus to provide tailored solutions to our clients’ needs and enhance candidates’s experience in finding their ideal jobs.

Qualifications and Education: Building Expertise in the Field

In terms of qualifications, academic programs and certifications in sustainability and ESG management have gained prominence. Universities and professional organisations offer courses and certifications that equip individuals with the necessary knowledge and skills to excel in the field. Additionally, relevant degrees in environmental science, sustainability, business administration, and finance are highly valued by employers.
The ESG and sustainability job market is experiencing significant growth and offers diverse opportunities for professionals. Dedicated roles, as well as the integration of ESG knowledge into traditional job functions, highlight the increasing importance of sustainability in business strategies. Specialized skills, regulatory expertise, and industry knowledge are highly sought after.
​As companies strive to embed ESG practices into their operations, professionals with ESG expertise will continue to play a crucial role in driving positive change and shaping a sustainable future.

Diverse Opportunities: ESG and Sustainability Across Industries

The ESG and sustainability job market is not limited to specific industries. While sectors such as renewable energy, cleantech, and sustainable finance have a well-established presence, organisations across diverse industries are recognizing the need to prioritize ESG and sustainability practices. From manufacturing and retail to technology and healthcare, professionals with ESG expertise are sought after to drive sustainability initiatives and help companies future-proof their operations.

Navigating the Regulatory Landscape: Compliance and Governance Expertise

The increasing regulatory focus on ESG factors has led to a rise in demand for professionals who can navigate the evolving compliance landscape. Knowledge of relevant regulations and frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD) and the United Nations Sustainable Development Goals (SDGs), is highly valued. This includes expertise in managing ESG risks, conducting audits and assessments, and implementing sustainable governance structures.

Specialised Skills and Knowledge: Key Areas in High Demand

The ESG and sustainability job market also offers opportunities for specialised skills and knowledge. Professionals with expertise in renewable energy, circular economy, sustainable supply chain management, impact investing, and environmental conservation are in high demand. Additionally, individuals with experience in sustainability reporting frameworks, such as the Global Reporting Initiative (GRI) or Sustainability Accounting Standards Board (SASB), are sought after to ensure transparent and standardized reporting.

ESG Expertise in Traditional Job Roles: The Integration of Sustainability Principles

Another emerging trend is the growing importance of ESG expertise in traditional job roles. Professionals in finance, legal, marketing, operations, and human resources are increasingly expected to have a solid understanding of ESG principles and their implications for their respective fields. For example, financial analysts need to assess the financial risks and opportunities associated with ESG factors, while marketing professionals must effectively communicate a company’s sustainability initiatives to consumers.

Dedicated ESG and Sustainability Roles: A Shift Towards Holistic Approaches

One significant trend in the job market is the rise in dedicated ESG and sustainability roles. Previously, these responsibilities were often dispersed across different departments, such as corporate social responsibility, environmental management, or investor relations. However, as companies recognize the need for a holistic approach, they are creating specialised positions such as ESG managers, ESG analysts, and corporate sustainability officers. These roles focus on integrating ESG considerations into business strategies, measuring and reporting on sustainability performance, and engaging with stakeholders.

ESG and Sustainability Job Market Trends

The ESG (Environmental, Social, and Governance) and sustainability integration job market has experienced significant growth and transformation in recent years. As companies worldwide recognize the importance of incorporating ESG principles into their operations, the demand for professionals with expertise in this field has surged. This article will explore the evolving landscape of the ESG and sustainability job market, highlighting key trends and opportunities.
The integration of ESG and sustainability practices into business strategies has become a top priority for organisations across industries. This shift is driven by various factors, including the increasing awareness of climate change, social justice issues, and corporate governance standards. As a result, companies are actively seeking professionals who can navigate the complexities of ESG and sustainability and drive positive change within their organizations.
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