Greenhushing or ESG Retreat?
Each year, around this time, we publish the Force for Good Forecast, our team's signature annual report. We do so to help corporate leaders navigate and lead on the year's most notable social and environmental advocacy trends.
We are nearly complete with our 2025 FFGF, in the meantime, we’d like to share our 2025 line-up and offer a taste of what’s to come by showcasing one of our next trends, Greenhushing or ESG Retreat? Come back soon for our full report!
Greenhusging or ESG Retreat?
The murder of George Floyd in 2020 spurred a surge of corporate commitments to DEI. However, the 2023 Supreme Court decision which struck down affirmative action with respect to college admissions created a more widespread DEI chilling effect, with numerous high profile companies restructuring, downsizing, or eliminating their DEI programs and teams throughout 2024. Since President Trump’s re-election, this trend has accelerated into early 2025, with a steady flow of renounced commitments across sectors, from Walmart and Meta to McDonald’s and Target. Similar trends are present in the ESG and climate space, with BlackRock withdrawing from the Net Zero Asset Managers initiative and major energy producers returning their focus to core oil and gas assets and curtailing investments in renewables.
In part, companies are making these moves in response to increasing legal pressure from conservative issue campaigners opposed to DEI and ESG. Pressure has come from a series of lawsuits asking the US Equal Employment Opportunity Commission to investigate companies with DEI policies they consider to violate constitutional rights. Under the Trump Administration, the arguments behind some of these legal challenges could be further embedded into law or regulation.
Just as the Biden Administration was intensely pressured by equity and climate advocates, President Trump surrounds himself with figures actively engaged on anti-DEI and climate campaigns and actions such as the Dismantle DEI Act. This type of legislation, if passed, would significantly impact companies. On climate, Project 2025 advocates want an all-of-the-above energy policy that is agnostic to climate change. Already early in the Administration, the President has sought to significantly scale back federal programs and workforce related to climate change.
At the same time, equity and climate advocates are demanding resistance. For example, a group of 19 civil rights organizations published an open letter to F1000 companies in September 2024, urging them to persevere in their DEI commitments. Equity philanthropies like ABFE and the California Black Freedom Fund are pooling funds to train lawyers on civil-rights law and support nonprofits at risk of anti-DEI lawsuits. Corporate leaders, too, (including Cigna, JPMorganChase, and ConocoPhillips) have been vocal about how diversity is critical for business, while others are advocating for retaining parts of the Inflation Reduction Act (IRA) rather than eliminating it.
Most companies will likely take a more subtle tack. We expect “greenhushing,” a trend that started a few years ago, to only continue to rise, with many companies choosing to downplay—but not divest—their commitments on climate, biodiversity, or equity. Companies are shifting language to avoid now-controversial terms like “ESG,” or simply not reporting on initiatives that may invite political scrutiny. A recent study shows that while adjustments in language are common, 83 percent of businesses don’t intend to meaningfully alter their DEI initiatives. Many companies are looking to be “boring” in their disclosures and public communication while continuing quietly forward with their environmental and social initiatives.
Lastly, it’s important to understand that DEI and climate backlash has implications beyond the for-profit sector. Philanthropies and non-profit programs supporting underserved communities or climate objectives may also be affected by increasing scrutiny and are likely to deploy greenhushing tactics in response. Rockefeller Philanthropy Advisors, for instance, is adjusting how they describe their funding, shifting from racial equity language to terms like “the achievement gap.”
Either way, the next four years will be challenging as companies must walk the line between supporting causes they care about and evading scrutiny and litigation. NGO advocates have achieved some small wins, such as the dismissal of some anti-DEI lawsuits. But they face headwinds as the Trump Administration is well-positioned to progress their agenda this year and beyond.
Indicators:
A venture capital grant program for Black women officially ends after court ruling
What Boards Can Learn From Apple’s And Costco’s Fights Against Anti-DEI Proposals
Climate Action 100 signatories drop out amid fresh Republican probe
Wall Street firms are ditching climate coalitions. Do they matter?
Bottom line:
Companies and NGOs will both face increasing legal challenges to DEI, ESG, and climate initiatives under the Trump Administration, alongside anti-DEI/ESG issue campaigners. Rather than walking back internal equity initiatives, some companies will choose to communicate less or differently about these activities. It remains to be seen whether “greenhushing” will protect companies from potential litigation or regulatory oversight.
Author: Gleeson Ryan and The Future 500 Team
Future 500 is a non-profit consultancy that builds trust between companies, advocates, investors, and philanthropists to advance business as a force for good. We specialize in stakeholder engagement, sustainability strategy, and responsible communication. From stakeholder mapping to materiality assessments, partnership development to activist engagement, target setting to CSR reporting strategy, we empower our partners with the skills and relationships needed to systemically tackle today's most pressing environmental, social, and governance (ESG) challenges.
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