U.S. firms investing in Environmental, Social, and Governance (ESG) issues, yet remain silent about their involvement

U.S. firms investing in Environmental, Social, and Governance (ESG) issues, yet remain silent about their involvement

In a survey conducted by EcoVadis, a leading platform for evaluating ESG performance, 400 executives of U.S. companies with revenues over $1 billion revealed a trend of continued and growing investment in sustainability initiatives, while exercising caution in public communications.

The survey found that 87% of companies maintained or increased their sustainability investments in 2025, despite regulatory uncertainties related to the slowdown of ESG policies in the United States. This strong commitment to environmental, social, and governance (ESG) priorities is a testament to the strategic importance businesses place on sustainability.

However, alongside this increased investment, there is a notable rise in what has been termed "greenhushing"—where companies invest in sustainability but deliberately limit or reduce public disclosure about their efforts to avoid backlash or scrutiny. Nearly one-third of U.S. companies admit to greenhushing.

This trend is often viewed as a risk mitigation strategy, particularly amid increased political polarization and regulatory uncertainty, especially under shifting U.S. federal policies. Reflecting greenhushing, the number of large U.S. companies filing sustainability reports has dropped by about half in the first half of 2025 compared to the previous year.

Business leaders view ESG pillars as a competitive element, with 65% of executives viewing supply chain sustainability as a genuine competitive advantage. Most financial leaders (52%) consider corporate sustainability a growth driver. Just 6% admit considering corporate sustainability a low priority, limiting themselves to the minimum to comply with regulations.

The strategy of U.S. businesses regarding sustainability is to invest more but communicate less. 48% of respondents report their company's sustainability strategy remains unchanged this year, while 31% of executives report increasing investments while reducing public communication. 8% have stopped talking publicly about their commitments but continue to invest.

The survey also found that 47% of respondents believe eliminating ESG regulations would pose numerous risks, increasing supply chain disruptions. 59% predict an increase in unfair labor practices and worker mistreatment. On the other hand, 62% of directors and vice-presidents, as well as 59% of C-suite executives, believe it helps attract and retain customers.

In summary, U.S. businesses in 2025 are increasingly investing in sustainability but simultaneously exercising caution in public communications, reflecting a balancing act between leveraging sustainability for growth and managing political and reputational risks through greenhushing. This trend indicates that while sustainability remains a priority, transparency around these practices is becoming more selective and strategic.

1. Initiatives in environmental-science are not just an area of increased investment for these companies, but they are also seen as a competitive advantage in the business world, with 65% of executives viewing supply chain sustainability as a genuine competitive advantage.
2. In the realm of finance and investing, most financial leaders (52%) consider corporate sustainability a growth driver, while only 6% admit considering it a low priority, limiting themselves to the minimum to comply with regulations.
3. Despite the trend of "greenhushing"—where companies invest in sustainability but deliberately limit or reduce public disclosure about their efforts to avoid backlash or scrutiny—business leaders still recognize the significance of sustainability for public relations, with 62% of directors and vice-presidents, as well as 59% of C-suite executives, believing it helps attract and retain customers.

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