What: Despite a decline in public ESG messaging, companies continue to pursue net-zero and decarbonization targets, adapting their strategies to the current political climate.

Why it is important: The continued pursuit of net-zero goals, despite less public communication, demonstrates that sustainability remains a core business priority for retailers, aligning with recent regulatory and consumer trends.

As the term “ESG” becomes increasingly politicized and polarizing, many companies are deliberately reducing public communication about their sustainability initiatives to avoid scrutiny and backlash. This phenomenon, known as “greenhushing,” is particularly evident in the wake of significant regulatory and political changes, especially in the United States, where federal climate policies have shifted and scrutiny of ESG claims has intensified. Despite this quieter approach, most companies remain committed to their net-zero and decarbonization targets, integrating sustainability into their business strategies and operations. Experts note that while terms like “ESG,” “green,” and “eco-friendly” are being used less frequently in public-facing materials, the underlying actions and innovations in sustainability persist. Research shows that greenhushing can erode consumer trust and reduce the influence of sustainability messaging on purchasing decisions. Nevertheless, companies are advised to strategically communicate their impact, linking sustainability to business growth and competitiveness, rather than abandoning these efforts altogether.

IADS Notes: The current climate of “greenhushing,” where companies downplay or conceal their ESG initiatives, is unfolding as the retail sector faces transformative regulatory and market shifts. The EU’s revised sustainability directives (Drapers, March 2025) are compelling retailers to overhaul business practices and supply chain management, demanding unprecedented transparency and due diligence. Simultaneously, consumer expectations are rising, with over 60% seeking to make environmentally positive choices and nearly half of global companies integrating sustainability into new product launches (Euromonitor, February 2025). Regulatory scrutiny has intensified, as demonstrated when major brands faced bans for greenwashing (Financial Times, December 2025), highlighting the reputational risks of insincere sustainability claims. Retailers are responding by adopting more strategic, focused ESG approaches that align with business value and stakeholder influence (Harvard Business Review, May 2025). The mainstreaming of circular economy strategies (The Retail Bulletin, March 2025) further reflects a convergence of consumer demand, regulatory pressure, and business innovation, making sustainability not just a compliance issue but a core driver of retail competitiveness and trust.

Most companies are staying the course on ESG — just talking about it less