'Greenhushing' Rises as US Firms Boosts Sustainable Spend

Regulatory changes, climate challenges and geopolitical issues are increasingly influencing global business operations, positioning sustainability as a vital strategic component for US companies.

The EcoVadis 2025 Sustainability Outlook Report provides insights into how corporate executives balance compliance with gaining a competitive advantage.

Investing more, saying less

While political opposition to ESG regulations rises, US enterprises are intensifying their commitment to sustainability.

According to an EcoVadis survey of 400 executives, 87% have either maintained or increased their sustainability investments since 2025.

A growing trend, however, is "greenhushing"—where 31% of firms are investing more but communicating less about sustainability efforts and 8% have ceased discussing it publicly.

This indicates a shift of sustainability from mere branding to an integral business strategy, underscoring its importance for business resilience and viability.

Supply chain sustainability

Sustainability in supply chain practices offers critical value in mitigating risks and encouraging growth.

As per EcoVadis, 65% of executives believe these practices enhance resilience, reduce costs and strengthen brand value. For financial leaders, 52% recognise sustainability's role in long-term competitiveness, while only 19% still view it as a cost.

In sectors subject to due diligence regulations, 62% of directors and 59% of C-suite executives acknowledge sustainability as vital for customer retention.

The cost of deregulation

As ESG regulations face threats, business leaders are cautious about possible impacts.

Almost half (47%) of the C-suite suggest ESG rollbacks will lead to increased supply chain disruptions and 41% predict higher consumer costs due to climate-related expenses.

"Even as the debate over business sustainability heats up, executives are focused on the reality—sustainability is what keeps supply chains running and customers on board," says Pierre-François Thaler, Co-Founder and Co-CEO of EcoVadis.​​​​​​​

This emphasis on transparency and accountability is crucial for navigating risks and meeting compliance demands.

Concerns about inflation, resource access and labour abuses prevail, with 39% expecting reduced availability of essential resources and 31% warning about potential increased mistreatment of workers.

Data integrity challenges

Emerging regulations pose significant compliance challenges.

Approximately half of businesses are on track with ESG data mandates from California’s SB 253 and the EU’s CSRD, with lower readiness for Canada’s Modern Slavery Act (39%) and the EU’s Carbon Border Adjustment Mechanism (44%).

Poor data quality exacerbates the issue, as one-third of executives admit to relying on estimates for ESG disclosures, even when accuracy is uncertain, reflecting the pressure to report despite system inadequacies.

A catalyst for transparency

To tackle data gaps and enhance operations, US companies are leveraging technology.

ESG risk mapping tools see broad adoption (57%), along with supplier engagement platforms (49%) and supply base mapping (34%). However, tools mapping Scope 3 emissions, crucial for decarbonisation, are used by only 18%.

"Our goal is to empower companies with insights and make it easier for them to access primary supplier data exactly where they conduct their Scope 3 calculations," states Julia Salant, General Manager, Carbon Solution at EcoVadis.

The aim is to transition from industry averages to actionable primary emissions data, bolstering reporting and decarbonisation initiatives.

Plans for expanding the ESG technology stack are in place for 53% of businesses. This includes investments in platforms to enhance carbon engagement, moving from basic disclosure tools to systems that meet regulatory and operational needs.

The report from EcoVadis underlines that sustainability's future lies in resilience.