Food and beverage organisations around the world are facing a dilemma. Navigating the drive towards a more sustainable future is being met with increased scrutiny from consumers, regulators and investors, leading to the rise of so-called ‘greenhushing’. However, with the world facing critical climate-related targets, organisations must ensure they are still taking the lead when it comes to greener actions. Heather Moore, technical director for sustainability at global assurance provider LRQA, tells us more.
What is ‘greenhushing’?
A relatively new concept to some in the business world, ‘greenhushing’ is the term given to a lack of communication regarding progress in sustainability. With reports of greenhushing expected to become more prominent in the food and beverage industry this year, concerns are growing over whether this silence will have a detrimental impact on the drive to a net zero future.
The reason for the increase in greenhushing is understandable. Often, global organisations are intensely probed over their green pledges, leading to accusations of greenwashing and negative headlines. This is particularly the case in the food and beverage industry, given how consumer-centric it is. Packaging, ingredients and responsible sourcing are just some of the areas where food and beverage organisations have been put under the magnifying glass. The subsequent damage of being called out for overstating commitments can be significant to brand integrity and reputation.
Much of the scrutiny can be understood, as marketing campaigns sometimes overstate the deliverable actions, leading to scepticism and negative publicity. However, it must not come at the expense of sustainable action. With environment, social and governance (ESG) issues rising up the agenda, organisations are facing more pressure than ever to commit to more sustainable practices. Increasingly, investors expect clear strategies and the ability to deliver against expectations. As fears of being called out for greenwashing increase, how can organisations find the perfect balance?
Taking action
The best ESG strategies are from those whose environmental health and safety (EHS) and sustainability functions work together, rather than in parallel. Unfortunately, there are many instances of tunnel vision being applied, whereby teams focus on their own targets rather than working as a collective. If teams do not collaborate, organisations may miss opportunities to build effective management systems that guide and influence sustainable strategies. Collective learning is a powerful tool that organisations should grasp at the first opportunity.
Collaboration doesn’t stop at EHS and sustainability teams, either. Marketing and communications teams must also be involved to ensure announcements – both external and internal – are in line with the strategy. By working together, anti-greenwashing strategies can be implemented to help rebuild any lost trust and transparency. Communication must be formalised to ensure messaging is accurate while also meeting the needs – and expectations – of all stakeholders.
Some investors will require updates on sustainability pledges to be communicated through reports. There are several effective ways that companies can report their sustainable operations, including end-of-year financial statements or specific sustainability reports. Others host ESG sections on their website, where information is kept updated. These sit alongside shorter versions of annual sustainability reports to meet investor requirements.
The case for verification
Regardless of how claims are communicated, pressure is on organisations to deliver honest and achievable sustainable policies. As such, achieving assurance through independent verification is going to grow in importance.
Take the ISO 14064 standard, for example, which provides a framework for greenhouse gas accounting and verification for organisations looking to quantify and reduce emissions. The benefits are clear; not only does it showcase integrity by validating systems and processes, but it also helps you hit projected greenhouse gas reduction targets. Through verification, organisations will have the necessary assurance of any external carbon footprint declaration, meaning accusations of greenwashing reduce.
Of course, ISO 14064 is just one of the many standards in place that can support a more secure and sustainable future. There is a plethora of other standards to be aware of, all of which help bring order and peace of mind that the best processes are in place.
Regaining confidence in sustainability pledges
Greenhushing may be high on the agenda for many organisations this year, but it could have a detrimental impact on long-term sustainability targets. In order to even attempt to address the world’s problem of climate change, we need to share our successes and failures and learn from each other.
While it’s true that greenwashing can have a negative impact on perceived brand integrity, staying silent could have a detrimental effect on the long-term goals – both organisational and governmental. The best way to safeguard sustainability objectives from scrutiny is through independent third-party verification. That way, organisations can be safe in the knowledge that they are on the best path to success. Crucially, it creates transparency with stakeholders, building trust and greater ownership.
© FoodBev Media Ltd 2024
