How Greenhushing is Disrupting Sustainable Supply Chains

A silent crisis is unfolding across UK supply chains as businesses struggle to balance sustainability transparency with regulatory fears.

According to research by The Marketing Pod, 98% of businesses surveyed admit they have been excluded from new contract opportunities due to their inability or reluctance to share their sustainability credentials.

This widespread hesitation is creating significant disruption throughout procurement processes and supplier networks.

Despite these commercial losses, 85% of organisations have intentionally suppressed external sustainability communications in 2025, yet celebrated them internally. This disconnect is creating opacity in supply chains, making it difficult for procurement teams to assess the true sustainability performance of potential suppliers.

The Big Green Fears report reveals that firms are intentionally 'greenhushing' – silencing their environmental progress. This is primarily driven by fear of scrutiny, as nine in ten leaders worry their sustainability claims will be challenged by regulators or the public in 2025.

It is a striking paradox: industry leads the UK's net-zero charge, yet regulated sectors are bleeding contracts. The research reveals that every single decision-maker surveyed in utilities has lost business over sustainability gaps. Finance follows closely at 80%, while manufacturing sees a near-total impact, with 91% of firms losing out at least some of the time.

Jen Hughes, Co-founder of The Marketing Pod, says: "When nearly all organisations are losing tenders, it's clear that silence is not a safe communications strategy. In fact, greenhushing has become a threat to business growth and could contribute to a slowdown in net zero progress."

Supply chain reliability and procurement challenges

The research highlights the logistical and educational hurdles facing the C-suite. According to the Big Green Fears report, 57% of manufacturers claim supply chain unreliability is the biggest barrier to accelerating their sustainability strategy. This indicates that even organisations committed to environmental progress are being held back by their partners' inability to deliver consistent sustainable practices.

The skills gap is compounding these challenges. According to the findings, 60% of respondents are only somewhat confident that management has the right 'green skills' to execute the board's sustainability vision. This uncertainty means that procurement teams may lack the expertise to properly evaluate supplier sustainability claims.

Meanwhile, 29% of respondents cite keeping up with the latest regulations as their top green fear of 2025. This regulatory complexity is creating additional friction in supply chain relationships.

The willingness to invest in sustainable supply chains varies significantly by sector. Finance, at 94%, and construction, at 90%, were among the industries with the highest belief that customers are willing to pay a premium for a more sustainable product or service. This suggests these sectors may be more willing to absorb higher costs from suppliers with stronger environmental credentials.

Almost all businesses surveyed – 98% – are considering allocating budget for sustainability communications experts to safeguard their organisation's reputation. This investment is driven by the need to better articulate supply chain sustainability performance to procurement teams.

Transparency and verification demands

Research from Trellis data partner GlobeScan reveals a sharp decline in the public visibility of sustainability messaging by brands across more than 30 global markets.

In 2025, only 36% of consumers reported seeing at least some sustainability messaging, a significant drop from 49% in 2023. Trust in these messages has also eroded significantly. While 79% of people expressed at least some trust in sustainability communications in 2022, that figure plummeted to 65% by 2025.

These trends were consistent across eight major product categories, including cars, cleaning products, clothing, electronics, financial services, home furnishings, packaged food and personal care products. This erosion of trust is influencing procurement decisions, as supply chain managers become increasingly sceptical of supplier sustainability claims without robust verification.

Jodie Williams, Co-founder of The Marketing Pod, adds: "As a Benefit Corporation (B Corp), we practice exactly what we preach. We're familiar with the unease of scrutiny because we're navigating it ourselves and with our clients.

"Our certification means we don't just push sustainability stories; we understand the governance, ethics and data required to make them stick. With the Competition and Markets Authority (CMA) issuing new guidance specifically on supply chain responsibility, the challenge for business leaders has gone from promoting green claims to 'how can we prove it?'"

This shift towards proof and verification is reshaping supply chain relationships, as procurement processes increasingly demand detailed evidence of sustainability performance rather than aspirational commitments. The ability to provide transparent, auditable data about environmental credentials is becoming a critical differentiator in supplier selection processes across industries.