Building trust through transparency: a talk with our Social Impact Manager

Ever feel like climate anxiety is becoming more common in everyday conversations? Well, it’s not just talk – it’s driving change in the way businesses operate. Deloitte’s latest “2024 Gen Z and Millennial Survey” with over 22,800 respondents from 44 countries weighing in, reveals just how much younger generations care about corporate sustainability. And their message is clear: companies need to take sustainability seriously if they want to keep up.

The power of purpose

For Gen Z and millennials, finding purpose at work is essential. The survey shows that 86% of Gen Zs and 89% of millennials consider a sense of purpose critical for job satisfaction. And it’s not just about personal fulfillment – these generations expect companies to align with values that go beyond profit. Around 75% of respondents say that community engagement and societal impact matter when choosing an employer.

However, there’s a disconnect. While many feel positive about their own employers' sustainability efforts, less than half believe businesses as a whole are making a meaningful impact on society. This gap in perception suggests businesses still have a long way to go in convincing younger generations they’re genuinely walking the talk.

As Gabriele Dackaite , our Social Impact Manager, puts it, “Minimizing environmental impact and contributing to positive change are becoming increasingly essential for companies.” Her insight underscores a broader trend: younger generations aren’t just looking for jobs – they’re looking for employers who actively contribute to societal good.

Climate anxiety and corporate responsibility

Climate change isn’t just a future concern, it’s a present reality that’s driving anxiety for 62% of Gen Zs and 59% of millennials. This concern is pushing them to act – whether it’s changing jobs to work for a company that aligns with their environmental values or researching a company’s practices before making a purchase.

“Sustainability is no longer just an added bonus for businesses – it has become a significant competitive advantage. While it may be more crucial in certain industries than others, businesses that take meaningful steps toward improving their sustainability efforts are likely to gain increased trust and credibility from younger generations, leading to other types of advantages,” says Gabriele.?

And with Gen Z and millennials representing a growing share of the workforce and consumer market, businesses that lag behind in sustainability risk losing out.

The future of corporate strategy

So, what’s next? Over the next five to ten years, sustainability will move from being a side initiative to a core part of corporate strategy. According to Gabriele, “Currently, sustainability is mostly viewed as an additional initiative, but with visible consequences of global warming, shifting customer priorities, and evolving sustainability regulations, it will bring the best results when embedded in the company’s main strategy.”?

This shift is already underway as governments around the world ramp up their environmental regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the US SEC’s climate risk disclosure rules.

These new regulations mean businesses will have to go beyond feel-good statements. They’ll need consistent, transparent reporting on their environmental, social, and governance (ESG) efforts. In other words, companies must show their work, not just talk about it.

Trust factor

Here’s the challenge – how do businesses rebuild trust after years of exaggerated claims? “Avoiding greenwashing or overstating achievements is essential when discussing sustainability,” Gabriele points. Companies must focus on clear, honest communication. Nobody’s perfect, so don’t be afraid to admit it. Transparency about where a company is making progress and where it still needs improvement goes a long way toward building credibility.

The key is to be open about sustainability goals AND challenges. Gabriele suggests that businesses “set realistic goals and communicate truthfully,” a strategy that’s increasingly necessary in a world where consumers can easily fact-check claims and call out inconsistencies on social media. “As Surfshark, we only recently published our first Impact Report for 2023 and calculated our Scope 1 and Scope 2 emissions for the first time. We also shared insights about our internal operations and employee wellbeing. However, there is still significant room for improvement and growth, and a need to set future targets, which we will pursue in line with the expectations of our key stakeholders: customers, civil society, employees, management, and investors,” Gabriele shares.

Why it all matters

The demands of Gen Z and millennials are reshaping the way businesses think about their environmental and social impact. Younger generations aren’t just hoping for a better future – they’re actively pushing companies to create one.?

This shift means businesses need to get serious about sustainability, not just to meet regulatory requirements but to stay relevant and trusted in the eyes of their employees and customers.

Our Social Impact Manager Gabriele Dackaite sums it up perfectly: “In today’s competitive landscape, sustainability is no longer optional – it’s a clear expectation.” With Gen Z and millennials driving this change, businesses that take sustainability seriously are not just improving their bottom line – they’re helping to shape a more sustainable future for all of us.