A recent Deloitte study believes that about 90% of Gen Zs and millennials actively seek to reduce their environmental footprint, yet only 18% believe their employers have a strong commitment to addressing climate change.
The younger workforce is willing to pay more for sustainable products and services. They are also believed to be better informed and concerned about their employees’ choice of businesses. This challenges companies to adjust their sustainable strategies to attract these talents— whether for the business or the workforce.
A significant portion of talents actively research a company’s environmental impact and policies before deciding to work for them. And the ones satisfied with their employers’ commitment are inclined to remain with their employer for an extended period.
Compared to older adults, Gen Zs and Millennials are more vocal about the urgency of climate action. They also encounter a higher volume of related content on social media platforms, actively volunteer and attend protests to address the issue.
Top concerns of Gen Zs and millennials
In 2023, Deloitte surveyed 14,808 Gen Zs and 8,412 millennials across 46 countries between November 2021 and January 2022. Both generations identified the cost of living and climate change as their primary concerns (Figure 1).
Although compensation stands out as the primary factor, when selecting an employer, climate change becomes a major decision-maker.
Moreover, 42% of Gen Zs have already changed jobs or even entire career paths to align better with their values (Figure 2). The millennials are not far behind, with 39% having already made job changes or planning to do so.
Gen Zs’ commitment to climate is slightly higher. About 50% of Gen Zs and 46% of millennials pushing their employer to drive change on environmental issues. However, only 15% of Gen Zs and 16% of millennials admit they have the power to influence their organization’s sustainability efforts.
In the next part, as shown in Figure 3, only 15% of Gen Z individuals and 14% of millennials strongly believe that businesses are taking significant steps, a slightly higher proportion than the 11% and 13%, respectively who see their governments are deeply committed to tackling the climate crisis.
Interestingly, a considerable number are inclined to invest more in sustainable options. Specifically, Gen Zs. About 64% of them expressed willingness to spend extra on environmentally sustainable products. Another 36% opt for cheaper alternatives that lack sustainability features.
U.S. adults’ view on climate change
Despite Americans’ several urgent national issues, majorities believe that various entities, expanding from government to businesses, are not taking sufficient action to mitigate the impacts of climate change.
Related: Renewable energy investments call for stronger commitment to net-zero initiatives
Furthermore, there is broad support among the public for a variety of policy measures aimed at addressing climate change, such as transitioning to renewable energy sources, establishing infrastructure for electric vehicles, and implementing taxes and regulations to curb carbon emissions.
Related: Cars with wireless charging to transform global EVs market growth
According to a national survey conducted by Pew Research, the majority of Americans (69%) believe that large businesses and corporations are doing too little to mitigate the impacts of climate change (Figure 4). The survey included 13,749 U.S. adults, of which 912 were Gen Zs.
Majorities believe that large businesses (69%) and ordinary Americans (66%) are not doing enough to mitigate climate impacts.
Can financial considerations act as a barrier to environmental initiatives?
First Insight and the Baker Retailing Center conducted a study on U.S. consumers, surveying over 1,000 participants representing diverse demographics in terms of gender, location, and age group. The data collection period spanned from July 1, 2021, to July 10, 2021.
Despite economic challenges, we expect the demand for sustainable goods to remain high. Figure 5 shows that compared to 2019, 2021 saw an increase in spending for sustainable products by about 37% and 36% for Gen Zs and Millennials, respectively. The demand is high. But whether companies will continue to align with the priorities of their young customers remains uncertain.
Given the significant emphasis placed on sustainability by Gen Zs and millennials, it’s logical that they would adopt various practices to integrate sustainability into their daily lives. Moreover, they intend to invest more in energy-efficient homes and electric vehicles. They are also approximately have transitioned to a vegan or vegetarian diet and plan to have fewer or no children.
Related: Strategies for businesses to overcome sustainability challenges and thrive
Gen Zs and millennial workers are leading the charge on sustainability and climate change concerns. Their heightened awareness of environmental issues has prompted them to advocate more openly for their workplace values, expecting their employers and business partners to share their commitment to sustainability.
The new generations also advocate for visible climate initiatives from employers, such as banning single-use plastics and offering training to support environmentally conscious decisions.
Therefore, if the companies overlook the needs of these young generations, success in talent acquisition may prove challenging.
