Greenwashing and Greenhushing Consumer Activity

Caught between greenwashing and greenhushing? Here's the path forward.

With Anti-Greenwashing Rules rolling out globally — aimed at protecting consumers and investors — asset managers are walking a tightrope.

⬅️ On one side: Greenwashing — bold, unsubstantiated ESG claims that erode trust.

 ➡️ On the other: Greenhushing — saying too little out of fear, even when real progress is being made.

🟢 The solution is NOT to pick a side. It is to move forward with authentic, embedded sustainability — beyond empty marketing or minimum compliance, toward ESG integration at the core of business. Some firms already have this in their culture and long-term vision. Others must “retrofit” their organizations.

Here are the Financial Conduct Authority’s FOUR core principles that can guide the way:

🟩 Correct and Capable of Being Substantiated;

Don’t just claim impact — prove it. If your fund is “net zero aligned,” link it to science-based targets, disclose updates, and measure your portfolio footprint. Use Partnership for Carbon Accounting Financials (PCAF), GHG Protocol, CDP, and engagement strategies to back it up.

🟨 Clarity Matters;

Avoid jargon and vague buzzwords; clarity builds trust. Terms like “positive impact” or “eco-conscious” are too broad. If you're creating jobs, be clear about conditions and wages. A better example for asset managers:

 “70% of portfolio companies have verified emissions reduction pathways.”

 But remember — context matters. If 70% of all companies have that, you're just tracking the market.

🟦 Complete

Claims must be representative. Tell the whole story — progress and trade-offs. I remember reading one bank's ESG report highlighted millions invested in renewables. But what about the billions in fossil fuels? Is that trend shrinking or growing? Likewise, a fund may exclude fossil fuels but still hold high-emission industries. That nuance matters — and clients respect the honesty.

🟧 Make it Comparable

How do your funds or services compare to others?

Rating have weaknesses. Good analytics are key to tracking and benchmarking against the competitors.

🍊 Regardless of politics or policy, clients and employees still expect companies to create value; not just extract it.

Greenwashing rules are not a constraint. They’re an opportunity to cut through noise and build credibility rooted in substance.

But this will require a true Integration across business functions. Employees ( your biggest asset) increasingly want meaning at work.

I hope financial institutions seize this moment to build stronger, more resilient companies fit for the 21st century (not golden age)...