The vast majority of large U.S. companies are continuing to maintain or even increase their investments in environmental, social, and governance (ESG) initiatives, viewing sustainability as a crucial driver of competitive advantage and business growth. However, many firms are deliberately scaling back their public communication about these efforts, a trend described as “greenhushing,” amid increasing political and regulatory scrutiny. This nuanced landscape emerged from a recent comprehensive survey conducted by business sustainability ratings and solutions provider EcoVadis, which polled 400 executives from companies with over $1 billion in revenue across diverse industries including consumer, industrial, technology, and services sectors.
According to the EcoVadis report titled “2025 U.S. Business Sustainability Landscape Outlook,” 87% of surveyed executives affirmed that their businesses are either maintaining or expanding sustainability investments in 2025, with a scant 7% curtailing such commitments. Technology investment remains a key focus, as 89% of respondents plan to increase spending on ESG-related tech over the next year. Specific priorities include ESG risk mapping tools and supplier disclosure platforms, aimed at enhancing transparency and mitigating risks across supply chains, along with carbon engagement technologies.
The growing sustainability focus underscores its perceived strategic value. Sixty-five percent of executives see supply chain sustainability as a competitive edge that fosters faster growth through improved risk mitigation, resilience, brand reputation, operational performance, and cost efficiency. This is reinforced by findings showing that attracting and retaining customers is a key benefit recognized by both directors and C-suite leaders. For instance, 62% of directors and VPs, alongside 59% of C-suite executives, noted the customer retention advantage of supply chain sustainability. Additionally, more than half of financial leaders view sustainability efforts within supply chains as directly supporting growth and competitiveness rather than merely as cost burdens.
Despite these affirmed benefits, the survey highlights a significant shift in how companies communicate their sustainability initiatives. Nearly one-third of firms reported increasing their sustainability investments while simultaneously reducing public promotion about these efforts. Another 8% continue their investments but have ceased public discussions about their sustainability commitments altogether. This phenomenon, labelled “greenhushing,” appears fuelled by rising political backlash and regulatory uncertainty around ESG practices.
The concerns extend to potential regulatory rollbacks. Almost half of C-suite executives (47%) expressed apprehension that reducing ESG oversight could exacerbate supply chain disruptions and hinder the free flow of goods. Furthermore, 41% anticipate that climate-related disruptions will push consumer prices higher, while 39% are worried about inflation driven by constrained access to critical resources like food, water, lumber, and essential minerals. Only a very small fraction (4-5%) of executives believe that curtailing ESG regulations would have no adverse effect on global supply chains.
Pierre-François Thaler, co-founder and co-CEO of EcoVadis, commented on the findings, noting that despite heated public debates over business sustainability, executives are focused on pragmatic realities. He said, “Sustainability is what keeps supply chains running and customers on board. To stay ahead of risks and disruption, leading companies are prioritizing transparency and accountability by investing in tools that help them assess supplier performance, manage risk more proactively, and navigate evolving compliance demands.”
This cautious approach aligns with broader industry observations about shifting ESG communications. Another recent study found that 80% of large U.S. and multinational companies are adjusting their ESG strategies in light of new policy shifts, with over half deliberately moving away from the term “ESG” in public messaging. This reframing aims to adapt to political headwinds and mitigate backlash while preserving substantive sustainability progress behind the scenes.
Looking beyond the U.S., global reports suggest a consistent theme: sustainability is increasingly viewed as a source of long-term value creation. A report from Morgan Stanley indicates that 88% of companies worldwide see sustainability as a driver of long-term value, with many tracking returns on ESG investments and finding their strategies meet or exceed expectations. These findings reinforce the notion that, despite external pressures and communications challenges, sustainability remains integral to corporate strategy.
In conclusion, while U.S. companies are quietly bolstering their sustainability frameworks and recognising their economic and competitive benefits, they are exercising caution in public discourse on these issues. The transition from overt promotion to measured communication reflects a strategic balancing act amid evolving regulatory landscapes and political sensitivities. As sustainability practices become ever more foundational to resilient, growth-oriented supply chains, businesses are investing in innovative technologies and transparency tools to safeguard their futures, even if they choose to keep the conversation less visible to external stakeholders.
Source: Noah Wire Services
