Does Women's Participation Mitigate Greenhushing?

Abstract

For fear of being labeled “greenwashing,” many companies choose the opposite “greenhushing”-they no longer publicly discuss their sustainability actions and goals. But silence does not lead to progress, so what can be done to avoid greenhushing? Using an interactive fixed effects model for 29 OECD countries from 2002 to 2022, we find that women's board participation exerts a pro-environmental orientation in corporate decision making, which is associated with lower levels of greenhushing in ESG disclosure. This relationship is more pronounced in countries that place greater emphasis on women's rights in politics, business, and civil liberties. More importantly, in the face of geopolitical tensions and energy risks, we find that countries overly dependent on oil imports and exports tend to exhibit weaker business environments in relation to ESG disclosure. Accelerating the energy transition, including renewable energy innovation and consumption, is associated with a weaker tendency toward greenhushing. This study highlights the importance of women's participation in corporate governance for shaping ESG disclosure practices.