Investing in sustainable products and creating a clear sustainability message is becoming more important than ever. As millennials (born between 1981 and 1996) and Generation Z (born between 1996 and 2011) gain more influence as consumers and employees, the demand for sustainability will continue to grow.
A full discussion could be had about the differences between these two generations. However, many of their impacts on business are quite similar.
Specifically, these two groups value two key things more than older generations:
- Work that has meaning
- Products that reflect their values
As millennials and Gen Z take on bigger roles in the workforce and marketplace, the push for sustainability and purpose-driven businesses is expected to rise. This shift presents major opportunities for businesses that prioritize sustainability. Here are two key ways companies can take advantage of this trend.
1. Invest in and Promote Sustainability to Attract and Retain Employees
Research consistently shows that purpose is a major factor in attracting and keeping younger workers. This presents a significant opportunity for companies that want to build a strong workforce. Millennials became the largest generation in the labor force in 2016, and by 2025, they will make up 75% of the global workforce.
However, many millennials are skeptical of businesses. According to Deloitte’s 2018 Millennials study, only a small percentage believe companies act ethically and are committed to improving society. Both millennials and Gen Z consider “being a good employer” the most important corporate social responsibility (CSR) issue, and they are more likely than older generations to seek jobs with socially responsible companies.
A survey found that 75% of millennials consider a company’s social and environmental commitments when deciding where to work, and two-thirds would not accept a job at a company without a strong sustainability program.
Despite this, many businesses do not see employee engagement as a main reason for investing in sustainability. Fewer than 20% of companies in one survey listed it as a top-three motivator for their sustainability programs.
Some companies, like Workday, are taking steps to become attractive workplaces for younger employees. Millennials make up 53% of Workday’s nearly 9,000 employees. The company has focused on generational research to shape its culture, offering career development, measuring employee engagement, building green teams, and emphasizing purpose.
These efforts appear to be paying off. Workday ranked fourth on the 2018 “100 Best Workplaces for Millennials” list, achieved 35% revenue growth over three years, and has an 80% retention rate for its new-hire program for recent graduates.
2. Take a Stand on Social and Environmental Issues—and Follow Through
A study by LIM College found that nearly 90% of respondents believe millennials and Gen Z will drive businesses and governments to adopt more sustainable practices. In other words, these generations are pushing for sustainable products in areas like fashion, home goods, and transportation.
Cone Communications reported that Gen Z, which made up 40% of global consumers by 2020, is the most likely generation to believe companies should address urgent social and environmental issues. Among those surveyed, 94% agreed with this statement, compared to 87% of millennials.
This expectation extends beyond products to corporate positions on social issues. According to research highlighted in Above the Bottom Line, a report by FleishmanHillard, two-thirds of U.S. consumers and 80% of U.K. consumers have stopped using products or services because a company’s stance on an issue didn’t align with their own views.
Further findings suggest that around 60% of consumers expect businesses to take a public stand on major issues—even if they don’t personally agree with the company’s stance. This number jumps to 75% among millennials.
As millennials and Gen Z continue to make up a larger share of the consumer base, businesses must be ready to take clear, consistent positions on important topics—and back them up with action.
It’s worth noting that this expectation isn’t limited to younger generations. Recent research by Polecat found that consistency in corporate policies and positions ranked as the second most important issue for the general public in social media discussions.
Millennials and Gen Z are already reshaping business expectations. Companies that want to stay ahead are investing in sustainability, ethical practices, and advocacy—ensuring they remain relevant in this changing landscape.
