In the ever-evolving landscape of generational shifts, Gen Z has emerged as a powerful force advocating for change. This cohort, born between 1997 and 2012, is characterized by its digital native status, a penchant for activism, and a strong commitment to environmental, social, and governance (ESG) principles. In recent years, a growing trend known as 'climate quitting' has gained traction among Gen Z. This phenomenon highlights the generation's refusal to support or work for companies that do not align with their ESG values. They are more likely to quit their jobs or turn down a job offer if the company fails to meet their ESG standards.
According to new research recently published by KPMG, ESG considerations are playing a significant role in the employment decisions of nearly half (45%) of UK office workers.
Millennials and younger workers are driving the increasing trend of climate quitting – looking for greener jobs.
KPMG UK conducted the research with 6,000 adult office workers, students, apprentices, and former higher education graduates over the past six months. The survey also examined attitudes towards work, with 46% of respondents wanting their employer to demonstrate ESG commitment, and 20% of respondents rejecting a job offer if the company's ESG commitments did not align with their values.
What is Climate Quitting?
Climate quitting is a term that has gained prominence in discussions surrounding Gen Z's approach to their careers and consumption habits. It refers to the deliberate choice made by young individuals to disassociate themselves from organizations and brands that are perceived as lacking a commitment to sustainability and ESG principles. This includes refraining from applying for jobs at such companies, boycotting their products, and even divesting from them financially.
If you're between the ages of 25-34, you're more likely to value your employer's ESG commitments (55%). But if you're 18-24, you're even more likely (51%). And if you're 35-44, you're not far behind (48%). When it comes to finding a new job, 20% of respondents said they turned it down because the company's ESG commitments didn't match their values, which is even higher for 18-24-year-olds (20%).
You're also more likely to value shared values, with 82% saying it's important to be able to connect values and purpose to the organization you work with. Again, it's the 18-24s who are most likely to do so (92%), followed by the 25-34s (86%) and the 35-44s (84%).
Why Gen Z is Taking a Stand?
A Future at Stake
Gen Z has grown up in a world where the effects of climate change are increasingly apparent. From extreme weather events to biodiversity loss and rising sea levels, they have witnessed the consequences of decades of unsustainable practices. The urgency of addressing these issues has prompted them to demand change from the institutions that have the power to make a difference.
Values-Driven Generation
Gen Z is characterized by its strong sense of ethics and social responsibility. They prioritize values such as equity, inclusivity, and sustainability. For them, it's not just about making a profit; it's about making a positive impact on the world. This mindset directly influences their career choices and consumer behaviour.
Social Media Amplification
Social media plays a significant role in shaping Gen Z's perceptions and opinions. Climate activism and awareness campaigns are widely shared on platforms like Instagram, Twitter, and TikTok. These platforms have the power to mobilize young individuals and encourage them to take a stand against organizations that they perceive as environmentally irresponsible.
Implications for Companies
Reputation Risk
Gen Z wields substantial power in shaping a company's reputation. A negative image associated with environmental irresponsibility can harm a brand's long-term success. Climate quitting campaigns on social media can quickly go viral, leading to widespread boycotts and reputational damage.
Investor Pressure
As Gen Z begins to accumulate wealth, their investment choices will increasingly reflect their ESG values. Companies that do not align with these values may face divestment from Gen Z investors, impacting their stock prices and financial stability.
Adapting to the Gen Z Mindset
To thrive in a world where Gen Z's commitment to ESG principles is non-negotiable, companies must adapt:
ESG Integration
Companies must integrate ESG principles into their core business strategies. This involves not
only setting sustainability goals but also communicating transparently about their progress and actively addressing areas where improvements are needed.
Authenticity
Gen Z can detect greenwashing and inauthentic attempts at sustainability from a mile away. It is essential for companies to genuinely commit to sustainability and social responsibility rather than simply paying lip service to these ideals.
Engagement
Engaging with Gen Z on the platforms they frequent is crucial. Companies should actively participate in conversations about sustainability and ESG issues on social media, demonstrating their commitment to these values.
Gen Z's unwavering commitment to ESG principles through climate quitting is a powerful testament to their determination to create a more sustainable and equitable world. Companies that recognize and adapt to this mindset will not only attract the next generation of leaders and consumers but also contribute to positive change in our global community. The message is clear: there is no Gen Z without ESG, and companies must heed this call to remain relevant and prosperous in the years to come.
