Managing sustainability communication under perceived disclosure risk

Sammanfattning

Increasing regulatory pressure has changed the conditions under which sustainability communication takes place. While previous research has primarily focused on sustainability disclosure, transparency, and greenwashing, less attention has been given to how firms manage risks associated with external sustainability communication beyond formal reporting. As sustainability claims increasingly require substantiation and verification, firms operate in a communication environment characterised by scrutiny, uncertainty, and potential reputational exposure. This cautious landscape has introduced the concept of Greenhushing. This study examines how firms navigate sustainability communication under increasing regulatory pressure and how institutional pressures are translated into communication practices through perceived disclosure risk. Drawing on institutional theory and disclosure cost theory, the study is based on 19 semi-structured interviews with 21 representatives from large Nordic firms across multiple industries. The findings show that firms continuously assess reputational, legal, and interpretive risks when deciding what and how to communicate externally, making sustainability communication increasingly selective and evidence-based. The study further identifies perceived disclosure risk as a central mechanism through which institutional pressure shapes sustainability communication practices. Finally, the findings suggest that greenhushing should not only be understood as complete silence, but as a broader spectrum of selective communication strategies, including omission, downplaying, and careful wording.