Pia Zevallos - Libélula General Manager
In a global context where the climate crisis and biodiversity loss top the most pressing risks (WEF, 2024), effective sustainability communication has gone from being an option to a strategic necessity for companies. It is not enough to be sustainable; it is imperative to communicate it in a transparent, accessible and understandable way. However, the proliferation of misleading practices such as the greenwashingas well as the emerging trend of non-communication, such as the greenhushingare undermining public confidence and challenging the credibility of companies.
The greenwashing has significantly impaired sustainability communication. In 2023, there was a 70% increase globally in incidents of greenwashing in the banking and finance sectors (Trade Finance Global). This not only distorts public perception, but also devalues the genuine efforts of those companies that are truly committed to a sustainable future.
On the other hand, the greenhushinga trend in which companies choose to reduce communication about their sustainability initiatives to avoid criticism, is growing. Rather than face potential accusations of greenwashing, 58% of brands have decided to reduce communication about their sustainability initiatives (South Pole, 2022). This approach of withholding relevant information can be equally damaging, as it deprives consumers of crucial data about companies' impacts and efforts.
In Latin America, where 71% of people consider sustainability a relevant issue in their daily lives (Boston Consulting Group, 2022), companies have a responsibility to communicate effectively and ethically. According to the Global Reporting Initiative (GRI), 330 listed companies in the region, representing 83% of market capitalization, disclose sustainability information. However, the key to effective communication is to ensure that the communication is an honest reflection of the company's commitment to sustainability.
Companies should adopt a holistic approach that combines the veracity of data with the ability to tell stories that are inspiring and consistent. This strengthens the company's reputation, and also contributes to a real and meaningful change in public perception and behavior towards sustainability.
The pressure to communicate effectively intensifies as sustainability reporting becomes increasingly mandatory. Meeting international reporting standards is not only a matter of legal compliance, but also an opportunity to strengthen credibility and consumer relations.
In conclusion, sustainability is not only about actions, but also about how these are communicated. Well-constructed communication can be the difference between a company that simply claims to be sustainable and one that really is. Words, when used carefully and responsibly, have the power to inspire genuine and lasting change.
Column published in the Gestión Newspaper
