Silent achievers: Australia’s best-kept sustainability secret

Monash Business School PhD candidate Stephan Dua Modest.

August 22 2024

Why are so many companies keeping their carbon-neutral achievements under wraps?  A new study by Monash Business School PhD candidate Stephan Dua Modest has uncovered the reasons behind the surprising new ‘greenhushing’ trend.

Australia is home to a growing number of carbon-neutral companies, but you’d never know it.

Despite a surge in certifications – from 92 to 500 in just two years – many organisations are reluctant to trumpet their environmental achievement.

Monash Business School PhD candidate Stephan Dua Modest is determined to understand why.

His research examines the motivations behind the emerging trend, dubbed ‘greenhushing’.

“My research began with a simple question: what drives companies to seek certification, given schemes like Climate Active are voluntary,” he said.

To gain insight, he conducted 32 in-depth interviews with senior leaders and executives in carbon-neutral certified companies across Australia.

Consistent with prior research, the study revealed three primary motives: competitiveness, legitimacy, and altruism.

“Some firms seek certification to gain a competitive edge as industry leaders, others do it to meet external stakeholder expectations, and some are driven by the decision-makers’ genuine passion for sustainability,” he said.

Surprisingly, despite these motivations, many companies are reluctant to publicise their carbon-neutral status.

The drivers behind “greenhushing”

“I initially assumed organisations would actively promote their achievements, but during my interviews, I realised that wasn’t the case,” Mr Dua Modest said.

The research showed that companies motivated by altruism or a desire to maintain legitimacy were less likely to promote their credentials, while those aiming for a competitive edge were more likely to publicise them.

This reluctance stemmed from two key factors: a lack of public awareness and a fear of being accused of greenwashing in the politically-charged carbon emissions space.

Mr Dua Modest said the controversy surrounding carbon-neutral schemes was largely due to questions about the reliability of carbon offsets and concerns that they distract from the urgent need to reduce upfront carbon emissions.

“I understand why some organisations choose not to shout it from the rooftops, however, while up-front reductions are crucial, research shows carbon-neutral organisations are reducing emissions, not just buying their way out of them,” he said.

“These organisations are going above and beyond what is required and making real progress in reducing emissions.”

Giving credit to the quiet achievers

Mr Dua Modest’s supervisor, Professor Srinivas Sridharan, said the research would shed light on the Australian companies quietly earning carbon-neutral certification.

“Doing so will make Australian consumers more aware and sensitive to buying products and services from carbon-neutral firms, an important contributor to Australia's net-zero mission by 2050,” Prof Sridharan said.

Reflecting on his experience at Monash Business School, Mr Dua Modest highlighted the support he received for his field research.

“As part of my study, I travelled across Australia to speak directly with decision-makers at these firms,” he said.

“Monash’s support made this invaluable experience possible.”

As for the future, he is eager to continue his work in the energy transition and climate change space.

“I want to help companies solve practical energy transition problems and continue qualitative research addressing these critical challenges,” he said.