The Investor’s Dilemma: Loud Lies vs. Quiet Truths

The Sustainability Paradox 

Have you ever stood in a store, weighing two products, and found yourself swayed by a bold, green coloured “eco-friendly” label? Maybe you paused and asked, “Is this really true, or just some marketing hype?” In today’s fast paced world, companies are engaged in a continuous struggle to balance the portrayal of authentic progress being done by them  with the embellishment of their accomplishments. Some loudly trumpet sustainability by stretching the truth, a tactic known as greenwashing. On the other hand, others choose silence out of caution, concealing even genuine achievements, now a rising trend called greenhushing. Though they sound like opposite ends of a spectrum, both practices blur the line between fact and fiction, and both risk destroying public trust in sustainability itself.

The Allure of Greenwashing 

Greenwashing is the art of portraying a brand to be  more environmentally responsible than it actually is. It is designed to attract consumers to win them over their competitors, investors for funding, and, in some cases, government favours like subsidies. However, consumers are eager to embrace the promise of “green” goods and services, even though these claims often lack substantial backing. A 2025 KPMG survey revealed a sobering fact that over half the global executives admitted that their companies regularly stretched the truth in their messaging on sustainability. The market incentives are clear that sustainability is big business. The word “eco” sells.

When Promises Fail: Real world Examples

Examples of greenwashing are everywhere. Probably the most famous case is Volkswagen’s so-called “Clean Diesel” campaign. Using special software to deceive emission tests, the company promoted its cars as environmentally friendly. When the truth came out, that the  company strategically bypassed the emission tests just to present itself as a sustainable brand, the company was fined over $33 billion and felt a heavy blow to its reputation and legacy. McDonald’s made a similar mistake, or better call it a thoughtful tactic, by replacing their plastic straws with paper ones, only for people to discover that the new straws couldn’t actually be recycled. Keurig Dr Pepper promoted its pods as recyclable even though most recycling centres refused to take them in. Budget airline Ryanair went so far as to claim it was “Europe’s lowest-emission airline”, a claim regulators later banned as it was actually misleading. In every case, the damage came from one place, the rift between promise and reality. Companies sold promises, the promise of sustainability,  but real change never followed those loudly claimed promises. 

The Rise of Greenhushing 

But on the polar opposite, there is greenhushing, which is oh so quiet. This practice refers to companies that do reach sustainability milestones opting for silence over celebration. Why hide the good news, you may ask? The answer is deep-rooted fear. Corporations are afraid of being called out for exaggeration or legal challenges or of being penalised for not having perfect metrics. A 2024 global study by South Pole found one in four large corporations now actively withholds positive sustainability data, simply to avoid trouble. When Canada passed  anti-greenwashing laws, Pathways Alliance, a giant oil collective, scrubbed all climate-related information from its website in hopes of avoiding lawsuits. The result is that real progress remains hidden. We don’t get to know what is true and what is false anymore, and what is the result? The public becomes confused, suspicious or perhaps oblivious.

The Regulatory Landscape in India 

To reduce the impact of greenwashing, India has Greenwashing Prevention Guidelines, which were imposed in 2024 and allow for fines up to ₹10 lakh or even jail time in case of misleading sustainability claims. Now, companies have to disclose measurable data verified by third-party agencies before labelling themselves as “green”. Ironically, this move has scared some businesses so much that they don’t speak about sustainability for fear of legal consequences, which leads to greenhushing. Regulation, while well-intentioned, runs the risk of suppressing the very voices that could force the market toward honesty.

Principles for Authentic Communication 

Against this backdrop, experts say the way forward is a strategic embrace of three core principles — honesty, evidence, and simplicity. The 2025 Anti-Greenwash Charter recommends that every environmental claim should be supported by attached verifiable data. Instead of slogans like “eco-friendly packaging”, brands should show evidence like, “This product reduces water usage by 25% and is ISO certified.” Instead of generic “biodegradable” statements, companies could clarify that this product “breaks down naturally within 12 months in home compost conditions.” Clarity matters much more than flashy words, and it helps consumers make informed decisions.

Sustainability as a Journey: The Patagonia Model

Fighting greenwashing requires businesses to position sustainability as a journey, not as a destination. Wholly unrealistic in a world of complex chains and emerging technology, perfection is but an unattainable dream. Yet, it is an uncomfortable truth, since brands have much to lose from saying absolutely nothing for fear that unfinished progress will come under criticism. As it has always been said, continuous improvement should be celebrated, and brands should share successes and setbacks with audiences. Patagonia’s global reputation is built on this very principle. It leads the way in corporate environmental responsibility by using sustainable materials, running strong recycling programmes, and donating generously to environmental causes; it is known for donating 1% of its sales to nature. At the same time, the company is honest about where it still falls short, openly acknowledging its challenges in cutting supply chain emissions and reducing its dependence on petroleum-based fabrics.

When the company misses targets for environmental goals, for example, they communicate challenges and next steps to their audience. Far from weakening their image, this makes them more trustworthy. Consumers are increasingly valuing transparency—a readiness to reveal all that is good and not yet so good.

Empowering the Conscious Consumer

But beyond rules and charters, one major driver for real change is the educated consumer. It is not enough to demand that companies clean up their narrative; buyers must demand proof. It is easy to be taken in by slick “green” labels. All such promises need to be evaluated critically. The best defence against greenwashing and greenhushing is very easy: well-informed consumers. Shoppers should look for credentials like B Corp, ISO certification, and others from independent, third-party groups that stand unbiased. 

The Path Ahead for India’s Market

This is a particularly critical juncture for India’s dynamic market. Social enterprises, handicraft marketplaces, rural startups, and large corporations – most of them live in a regulatory climate that is changing at a swift clip. Off the record, many local founders share that creating sustainability messaging is often much harder work than the actual improvements. Businesses walk a tightrope between risk, honesty, and ambition. Under these conditions, authenticity pays, but it takes courage: a will to show both strengths and weaknesses in the journey of improvement.

Final Reflections: From Marketing to Reality

So, what should the conscious consumer, the entrepreneur, or the investor do? The challenge is not to navigate between noise and silence. The major concern is to find a balance and demand truth. Small differences while shopping, like asking for certifications, reading detailed product information, and empowering brands that share their progress openly can lead the market toward clarity and real change. Supporting businesses that report reality builds a culture wherein courage and communication win out over theatrical slogans or fearful secrecy.

Ultimately, both greenwashing and greenhushing are born of the same emotion: fear. One springs from the fear of being ignored, the other from the fear of being judged. The solution is not spectacle or silence but purposeful honesty. Businesses must stop “marketing sustainability” and start “reporting reality.” Were every brand to show its progress and its challenges, society could reward sincerity over slogans, competition would drive further improvements, and a truly sustainable future would become achievable.

The next time a product is screaming “green,” don’t stop at the label; find the data behind the claim. The power to build trust and foster real sustainability rests in the hands, wallets, and everyday choices of consumers. Real change starts with a commitment to transparency. When you ask for proof, you are part of the solution, helping break the cycle of noise and silence.

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How India’s greenwashing guidelines can protect consumers | CAG. (n.d.). https://www.cag.org.in/blogs/how-indias-greenwashing-guidelines-can-protect-consumers

ClimateSeed. (2025b, April 14). Greenhushing: Understanding the practice opposite to greenwashing. ClimateSeed. https://climateseed.com/blog/greenhushing-fear-of-greenwashing

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