Does gen z care about sustainability
Does gen z care about sustainability? There is one thing that many Generation Zers have in common when it comes to sustainability: They have a lot of anxiety about protecting the natural world. In this blog post, Robyn Simpson, the Sustainability Engagement and Communications Assistant at Ulster University Business School, explains why this generation places a high priority on addressing climate change.
Members of Generation Z—those born between the late 1990s and the early 2000s—are not afraid to speak the truth and leave their mark when it comes to sustainability concerns.
This generation is motivated to make the world a better place by demanding action on climate change from those in power and by choosing eco-conscious businesses and places to spend money. In 2019, 10,000 young people were surveyed by Amnesty International, and the most frequently mentioned global issue was climate change.
Generation Z is willing to alter their behavior in order to live a more sustainable lifestyle and ensure the health of the planet in the future. They are aware of the effects that climate change is having on the planet. In a 2019 survey conducted by the University of Bath, 41% of 16- to 25-year-olds stated that they were hesitant to have children due to climate change, and 71% stated that their future is terrifying.
Millennials already played a significant role in ESG investing, contributing $51.1 billion to sustainable funds in 2020, compared to less than $5 billion in 2015. Morningstar reports that investors poured $69.2 billion into ESG funds in 2021, setting a new record that did not surprise anyone. As more people gain wealth, this pattern will only get worse.
In addition, the prospects for sustainable investing are quite promising when one considers that 40% of Gen Zers say that “companies with a purpose” influence their investment decisions and that their anticipated income is anticipated to rise by as much as 140% in the next five years. By 2025, ESG mandates are expected to make up about 33% of all managed global assets. In the long run, according to the International Institute for Sustainable Development, the market for ESG-mandated investments will reach $160 trillion in 2036, up from $30 trillion in 2018.
When we see forecasts like that, most of the time, a lot of businesses want to take advantage of the growth curve. This was no different. By the middle of 2022, investors in the United States would have access to over 550 ESG mutual and exchange-traded funds with assets close to $300 billion, up from just over 200 in 2017.
To be clear, not every one of these funds is brand-new; With an emphasis on ESG, nearly 100 mutual funds and exchange-traded funds (ETFs) have been redesigned. Due to investor demand and expanding access, 34% of financial advisors will use ESG funds with clients in 2021, according to the Financial Planning Association.
As a result of the shift toward sustainable investing, greenwashing is the practice in which “a company purports to be environmentally conscious for purposes of marketing but actually isn’t making any notable sustainability efforts.” To put it another way, the majority of what are referred to as environmental, social, and governance practices (ESG) are primarily marketing gimmicks.
As a direct consequence of this, investors and customers have developed a skepticism toward businesses and investment products that make the claim to employ sustainable practices. It is also of interest to securities regulators because they want to establish new guidelines for what an ESG investment product is.
It has been noted that Generation Z places a high value on environmental stewardship in all facets of their lives, including shopping. This was demonstrated by Mintel’s most recent findings, which showed that, compared to Baby Boomers, significantly more 16- to 19-year-olds agreed that sustainability is an important factor in fashion purchases.
Generation Z is not only passionate about this planet and committed to taking action, but they are also eager to voice their concerns. Eimear Rafferty, an 18-year-old member of Generation Z, is a prime example of someone who does not hesitate to express her opinions regarding climate change. One of the keynote speakers recently at the Sustain Exchange Summit in Belfast was Eimear Rafferty, the Young Climate Ambassador representing Northern Ireland at COP-26 in Glasgow.
She expressed feelings of disappointment, eco-anxiety, and frustration as she spoke on behalf of young people about the challenges that lie ahead for our climate. However, she also held the belief that all was not lost and that a participatory strategy in which consumers and businesses focus on their fight against climate change could have a positive impact.
