What is “greenlash” and is it here to stay?

We’re all familiar with greenwash by now, but how about greenlash? There’s been a rise in the term in the media during 2023, to put a name to an increase in anti-ESG rhetoric and policy. 

With testing economic times and polarising politics set to continue in 2024, the conditions could be ripe for ever greater greenlash. Here we explore whether the trend is set to stay and grow, and if it’s really a match for the green revolution that’s also happening. 

What is greenlash?

Greenlash it short for green backlash. It’s being used to describe slowing down or resistance to policies and practices that do right by the environment, especially in Europe. 

As the EU sets ambitious climate laws, some leaders across the continent don’t share their urgency, instead calling for a slower transition. In other cases, like the UK’s approval of our largest-ever gas field, the climate crisis seems to be ignored in decision-making altogether. 

While the term “greenlash” is mainly appearing in political commentary right now, this anti-ESG sentiment has also surfaced across the business world. This year, ASOS ditched diversity bonuses for ones focused on profit; Unilever’s new CEO labeled corporate purpose an “unwelcome distraction”; Shell and BP scaled back their emission reduction targets.

The normalisation of greenlash

What’s behind this increase in greenlash? 

Much of the strongest rhetoric about turning back on green policies is coming from the populist right, which has had a resurgence in Europe. These parties are exploiting fears around the lifestyle changes and costs related to adapting to climate change to win votes. 

Just last month, Geert Wilders and the Party for Freedom won the Dutch election with a manifesto that includes lines about not fearing climate change and stopping the “hysterical reduction of CO2”.

Climate crisis denial made the mainstream on an even wider world stage at COP28. Not only did the fossil fuel industry’s influence dominate headlines, but the UAE’s Sultan Al Jaber was quoted as saying there is “no science” behind demands to phase out coal, oil and gas. 

So the political climate may be emboldening some leaders to roll back environmental commitments. There’s potential for the same to happen in the business world, as companies who previously led the charge on corporate sustainability backtrack on their ESG efforts. 

Unilever is the stand-out example. While former CEOs, namely Paul Polman and Alan Jope championed ESG, this year’s new appointment Hein Schumacher is steering the company away from its purpose-led direction. 

Underlying the decision is an attempt to reboot Unilever’s growth and keep shareholders happy, after a rocky period for their finances. While they’ve framed it as a move from aspirational to realistic sustainability goals, profit is ultimately the driving factor.

Will greenlash overpower the green revolution?

Right-wing populism and ongoing financial turbulence and cost-of-living crisis are no doubt here to stay in 2024. And that means greenlash likely is too. 

But while stories of big brands and political figures giving up on green promises make a big media splash, there are reasons to be hopeful (or at least cautiously optimistic) that the green revolution will be the winning narrative in 2024. 

Momentum is building among much of the rest of the world, as they power on with the green agenda. The International Energy Agency reports that renewables are on track to overtake coal as the world’s largest source of global electricity generation. This autumn, Portugal ran solely on sustainable energy for six days – a world first. 

Even at the most controversial COP yet, plagued by the fossil fuel industry’s presence, we saw some minor breakthroughs. While the final agreements are far from what’s required to seriously tackle the climate crisis, glimmers of hope came through, such as a commitment to triple the world’s renewable energy capacity. 

During the summit, Colombia joined the Fossil Fuel Non-Proliferation Treaty, a bold and significant move as a major fossil fuel exporter. Speaking on their decision, President Gustavo Petro said, “I have no doubt which position to take: between fossil capital and life, we choose the side of life.”

Be part of the change

As Nathalie Tocci writing for the Guardian points out, it’s easy to talk about a green transition in theory, but taking the leap for real is more daunting. It requires brave, visionary action, that won’t be popular with everyone. 

The payoff is worth it though. In the case of business, it literally boosts profits. New research from global accounting firm Moore Global and the Centre for Economics and Business Research found that companies placing importance on ESG factors saw profits rise 9.1%. 

Some might be giving up on values for short-term gains. But to us, holding firm on ESG commitments is the only sensible, hopeful option for the planet and for business in the long term. 

We’ll leave you with three practical ways your business can embrace ESG and be part of the change:

1. Green pension funds: Swap to a pension provider that invests in climate change solutions rather than fossil fuels. (If you’re not clued up on this, watch the recent Make My Money Matter ad with Olivia Colman.)
2. Social procurement: Connecting with social enterprise suppliers is an easy way to vote for a greener, fairer future with your wallet.
3. Embrace tech for good: Make the most of tech that can help you make an impact and measure it too.