The Climate of Business #38: Millennials and Gen Zs driving the agenda in the board room?

Climate Change Reality

Back from the brink of extinction: The Spix’s macaws are returning to the wild (Euronews)

To survive climate change, coffee must embrace new and more resilient beans (The Washington Post)

Africa must forgo gas exploration to avert climate disaster, warn experts (The Guardian)

From Dhaka to Freetown, climate migration puts cities on alert (Thomson Reuters Foundation)

India takes tough stand at climate talks as Delhi endures brutal heatwave (The Guardian)

Extreme weather slams the U.S., from flooding to fires (Axios)

Feeding a hotter planet (The New York Times)

Sky News Australia is a global hub for climate misinformation, report says (The Guardian)

Can carbon capture be part of the climate solution? (The New York Times)?

UK sued over climate plans in first legal test of ‘net zero’ (Bloomberg)

Business Climate Reality

Australia commits to reducing greenhouse emissions by 43% (Politico)

Next Era’s plan to ditch carbon is a huge bet on hydrogen (Bloomberg)

Net-zero Picasso: Museums rethink art shows to cut climate impact (Thomson Reuters Foundation)

Why an energy crisis and $5 gas aren’t spurring a green revolution (The Washington Post)

Most corporate net-zero targets are weak and vague, report says (Bloomberg)

Some European factories, long dependent on cheap Russian energy, are shutting down (The Wall Street Journal)

Zimbabwe’s biggest bank to invest 2% of income in green projects (Bloomberg)

Forbes Global 2000 firms judged ‘alarmingly weak’ on climate plans (Forbes)

Lawmakers strike deal ahead of EU carbon market vote (Reuters)

Russia gas crisis highlights Europe's green energy storage problem (Thomson Reuters Foundation)

Reality Check

In the recent months during interviews for senior positions in Plan A, I stumble upon the same answer why the person wants to leave a corporate job and join the ranks of Plan A. "For my children". Be it because this father or mother, wants to contribute to a more sustainable future or because the kids have joined the ranks of Fridays for Future and have turned the household into a plastic-free one. Usually these kids belong to Gen Y and Gen Z.

This "phenomena" provoked me to dedicate this week's newsletter to them and how their purchasing choices are hurting the bottomline of companies and whole industries. How sustainable and conscious a certain industry or company is, often shifts their preferences and this novel way of making decisions should be on any business leader's radar, as they look for new talent, clients and evangelists.

Who are these Gen Ys and Zs?

Millennials and Gen Zs are more “cash-strapped” then previous generations and are also more conscious: eco, social, politically. They like to be unique and this is reflected in their food, fashion, travel choices. The way they spend money is with the intent to find balance and push the change they want to see in the world. They prioritise experiences over physical purchases.?

What is their vision for the future?

Millennials and Gen Z have an inclusive vision for the future, driven by concerns for climate change, equality, diversity and uniqueness. They want to see an inclusive world that aligns to their values - the way they use their purchasing power reflects this.??

“socially conscious, admirably deaf to the siren song of commercialism”

Chicago Tribune

Which are the industries affected??

Diamonds

The role of mining along with war and conflict issues have pushed millennials and Gen Zs to turn to other gems. Why buy a natural diamond, when you can buy a vintage or lab grown one?

Fabric Softener

U.S. liquid softener sales fell 15% between 2007 and 2015. Sales of Procter & Gamble’s Downy brand dropped 26% in the same period. Why buy fabric softener, when you can DIY it or even go without??

Canned Fish?

Processed food is dropping in popularity as well. Canned tuna is the biggest victim. According to The Wall Street Journal, only 32% of millennials purchase canned seafood, in comparison to 45% of people over 55. The reasons for the sales drops are mainly related to environmental concerns.??

Bank Branches?

BI Intelligence data shows ? of Millennials and Gen Zs visit a branch once or less a month. The rest don't visit branches at all. Why visit a branch, when you can do it all online??

Department Stores

The UK has lost 83% of its main department stores in the last five years. Buying online heavily defined by influencers online, combined with the constant search for uniqueness, which can not be easily found in department stores, has reduced the role of such stores. Why take the trip to a store, when it can easily be delivered to you??

Oil Industry

14% of millennials don’t want to work in the oil and gas industry due to environmental concerns. The number for Gen Z is estimated to be three times higher. Combine this with the fact that the oil industry is the main enemy of the "Fridays for Future" movement, the likelihood of this industry growing in popularity for these generations is low.

Cruises

Booking.com did a study on the preferences of Gen Z with regards to travel and cruise ships? were the clear losers. Unsustainable, often with an itinerary with stops at "tourist"-y places, cruise ships are not the most exciting travel option for the younger generations.?52% Gen Z will select to visit less known destinations over popular ones, especially with concern for the environment.

Why should businesses care about the ESG concerns of Millennials and Gen Zs??

Millennials and Gen Z's of this world are key stakeholders businesses seek to attract as consumers, employees and followers, they are often the purchasers of your products, are digital natives and spend most of their time in their online communities or documenting their offline experiences digitally. The inaction of a business on the topic of sustainability is unlikely to be left unattended by these generations.

Most importantly they are pretty loud - many cases of greenwashing in the fashion and other industries have been unravelled by exactly this target audience on for example TikTok, their favourite platform.?

Any business that wants to stay relevant for the foreseeable future needs to understand their values and offer products in alignment to them.

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