From Greenwashing to Greenhushing: A New Challenge for Circular Fashion

As consumers become more conscious of sustainability issues, brands have had to adapt their practices and communication strategies. This change has been motivated by two contrasting phenomena: greenwashing and greenhushing. Both present unique challenges for the circular economy, which aims to create a more sustainable and ethical industry.

Understanding Greenwashing and Greenhushing

What is Greenwashing?

Greenwashing refers to the practice of exaggerating or fabricating the environmental benefits of products or services to appear more environmentally responsible than they actually are. This deceptive marketing tactic has been prevalent in the fashion industry for years, with brands making green claims about sustainability without substantial evidence. This practice can impact by:

• Reducing consumer trust in real sustainability efforts.
• Creating confusion about what truly constitutes sustainable fashion.
• Creating legal repercussions and damage to a brand's reputation.

Consumers are increasingly aware of these practices, leading to heightened scepticism towards environmental claims made by fashion brands. This scepticism has, in turn, contributed to the emergence of a new phenomenon: Greenhushing.

What is Greenhushing?

On the opposite side, greenhushing is the practice of implementing sustainable measures but choosing not to communicate them. Companies engaging in greenhushing deliberately downplay or remain silent about their sustainability initiatives, often out of fear of criticism or accusations of greenwashing. Its key aspects are:

• Avoid publishing a brand’s sustainability goals and achievements.
• Minimal communication about environmental practices beyond mandatory disclosures.
• A cautious approach to avoid potential backlash or scrutiny.

The rise of greenhushing presents a new challenge for the circular fashion movement, as it can hinder progress and collaboration within the industry. According to a report by Swiss carbon finance consultancy South Pole, nearly a quarter of 1,200 companies with a sustainability head are not sharing their achievements beyond mandatory. This trend is particularly concerning because sharing green actions has the power to inspire others and promote circular economy business models.

Challenges in Sustainable Communication

Communicating sustainability efforts effectively has become a complicated act for fashion brands, presenting the following challenges:

1. Credibility concerns: Brands worry that their sustainability claims can be received as insufficient or insincere by consumers.
2. Legal risks: Increased scrutiny and potential lawsuits make companies hesitant to make bold sustainability statements.
3. Consumer scepticism: Years of greenwashing have made consumers wary of environmental claims, making it harder to highlight real and effective efforts.
4. Competitive disadvantage: Some brands fear that disclosing sustainability practices might give competitors an edge.

These challenges have led some companies to adopt a greenhushing approach, which, while avoiding potential criticism, also limits the positive impact they could have on industry-wide progress.

Impact of New Regulations on Corporate Transparency

Recent European Regulations changes are set to influence how companies communicate their sustainability efforts. The EU's Corporate Sustainability Reporting Directive (CSRD) introduces clear requirements for sustainability disclosures, based on the following key points:

• Mandatory detailed reporting on sustainability policies and practices.
• Increased scope, covering a wider range of companies.
• Focus on transparency and reduction of misleading practices.

These regulations' objective is to face greenwashing and promote real and reliable sustainability efforts, requiring large companies to disclose detailed information about their sustainability policies. This legislation aims to increase transparency and reduce deceptive practices like greenwashing, setting a higher standard for corporate responsibility in environmental matters. However, they can go greenhushing as companies become more cautious about their own sustainability public statements.

Balancing Transparency and Brand Protection

Finding the right balance between transparency and protecting their reputation is crucial for fashion brands. To accomplish both objectives, fashion brands can develop marketing and communication strategies following the following tips:

1. Be specific and factual: Instead of vague claims, provide concrete details about sustainability initiatives and their impact.
2. Acknowledge limitations: Be open about areas where improvements are still needed, demonstrating a commitment to ongoing progress. Recovo, for example, provides traceability data in every order to verify the circularity of the deadstock fabrics of its marketplace.
3. Use third-party certifications: Leverage recognized sustainability certifications to add credibility to claims.
4. Engage in storytelling: Share the journey towards sustainability, including challenges and learnings.
5. Educate consumers: Provide information on how customers can participate in circular fashion practices.
6. Highlight innovation: Showcase innovative sustainable technologies and practices being implemented.
7. Encourage dialogue: Create platforms for open discussion with consumers about sustainability efforts.

By adopting these strategies, brands can maintain transparency while mitigating risks associated with over-claiming or under-reporting their sustainability efforts. You can discover more about sustainable communication campaigns at Recovo’s Asset.

Consumer Expectations in the Circular Economy

As the circular fashion movement grows, consumer expectations are evolving. Today's consumers are more informed and demanding when it comes to sustainability, requiring information about their products:

• Transparency: Detailed information about product origins, materials, and manufacturing processes.
• Authenticity: Reliable commitment to sustainability beyond marketing claims.
• Accessibility: Easy access to sustainable fashion options at various price points.
• Education: Clear communication about how to participate in circular fashion practices (e.g., recycling, repair).

Meeting these expectations while navigating the challenges of greenwashing and greenhushing requires a thoughtful approach from fashion brands. Circular fashion efforts are both necessary for our environment, which requires to fashion industry to reduce its impact, and for consumers, whose commitment to sustainability is growing year by year.

The Role of Small and Medium-Sized Enterprises (SMEs)

While large corporations are often the focus of sustainability discussions, small and medium-sized enterprises (SMEs) play a crucial role in the circular fashion movement. In Spain, for example, a study titled "Opportunity in Change" by Acquis revealed that 64% of SMEs have already adapted some of their services or products to improve sustainability.

SMEs often have the flexibility to implement innovative sustainable practices quickly. However, they may also be more prone to greenhushing due to limited resources for comprehensive sustainability reporting. Encouraging transparency and providing support for SMEs in communicating their sustainability efforts is essential for the overall progress of the circular fashion industry.

Conclusion

The shift from greenwashing to greenhushing represents a new challenge for the circular fashion movement. While the intention to avoid misleading claims is positive, the reluctance to communicate sustainability efforts can hinder progress and collaboration within the industry.

As regulations evolve and consumer expectations continue to rise, fashion brands must find a middle ground. Transparent, honest, and measured communication about sustainability initiatives is key. By focusing on authenticity and backed by concrete actions, brands can contribute to the growth of circular fashion while building trust with consumers.

The future of fashion lies in a circular economy, and effective communication will play a crucial role in its realization. As the industry navigates these challenges, it's clear that the path forward involves not just implementing sustainable practices, but also finding authentic ways to share that journey with the world.

By embracing transparency and authenticity in sustainability communication, fashion brands can drive positive change, inspire industry-wide improvements, and meet the growing demand for truly sustainable fashion. The transition from greenwashing to greenhushing is just one step in the ongoing evolution of the fashion industry towards a more sustainable and circular future.