On April 23, 2025, the International Trademark Association (INTA) released its 2024 Presidential Task Force Report "The Effect of Greenwashing and Greenhushing on Brand Value." The report examines how misleading environmental claims and underreporting of genuine environmental, social, and governance (ESG) achievements affect brand perception, consumer trust, and ultimately brand value.

    This comprehensive report, derived from extensive research on different perspectives of ESG in brand marketing (i.e., through the lens of legislation, third-party advisors, and brands themselves), found that effective brand communication is a decisive factor in building consumer trust. The research confirms what many have suspected: both greenwashing (misleading environmental claims) and greenhushing (insufficient promotion of genuine ESG initiatives) negatively impact brand reputation and bottom-line performance.

    One of the report's key findings is concerning evidence that many brands miss important opportunities to enhance brand value by underreporting their genuine ESG activities. Research cited in the report indicates that despite growing consumer demand for such information, over 82% of products lack clear sustainability information. The report also documents how emerging ESG regulations in global markets present both challenges and opportunities for brands seeking to promote their sustainability efforts.

    Dana Northcott from Amazon, who served as INTA's 2024 President, explained: "While the geopolitical landscape and corporate priorities continue to evolve, consumers clearly want businesses to prioritize environmental, social, and governance principles. Our research shows that communicating ESG initiatives effectively and authentically is not just beneficial but crucial to brand value. This report provides brands with a roadmap to navigate the complex intersection of regulations, stakeholder expectations, and strategic communications."

    This Presidential Task Force report offers seven best practices for effective ESG communication, including adopting a strategic approach to ESG, leveraging technology and governance systems, aligning with global standards, engaging stakeholders, avoiding greenwashing, focusing on long-term value, and developing effective communication strategies to avoid "greenhushing."

    Etienne Sanz de Acedo, INTA's Chief Executive Officer, stated: "Today, the cost of inaction in ESG communication far outweighs the challenges of taking action. As this report demonstrates, brands that effectively communicate their genuine efforts in ESG will gain significant competitive advantages in consumer trust, talent recruitment, and financial performance. Our goal is to ensure INTA members worldwide fully recognize the importance of ESG communication to deliver greater value for their companies and clients."

Source:www.inta.org