ESG Matters: Why Gen Z Demands Actions, Not Promises

For Gen Z, ESG is not 'trendy', it is a non-negotiable expectation and an absolute priority. This generation has witnessed climate change disasters, social justice movements, and corporate scandals unfold on social media, shaping their belief that businesses must be part of the solution. Unlike previous generations, who may have prioritised salary and job stability above all else, Gen Z is willing to walk away from employers who fail to align with their ethical and environmental values. Recent data underscores this generational divide, with 32% of all UK workers stating they would leave their job if their employer’s ESG values did not match their own. Among workers aged 18 to 34, this figure rises to 43%, highlighting the critical role ESG plays in attracting and retaining younger talent.

What is ESG And Does It Matter to Gen Z Workers

ESG refers to: Environmental, Social and Governance and "is a set of standards measuring a business's impact on society, the environment, and how transparent and accountable it is".

1. Environmental Responsibility – Sustainability is a concern for all generations, but it is particularly important to younger ones. They expect businesses to take meaningful action on climate change, minimise their carbon footprint, and implement sustainable practices. Companies who engage in greenwashing, making superficial environmental claims without real commitment, risk losing the trust and engagement of young talent. In fact, a 2021 survey found that 88% of American Gen Zers don’t trust brands’ ESG claims, highlighting the growing demand for authenticity and accountability in corporate sustainability efforts.
2. Social Equity and Inclusion – Gen Z values workplaces that prioritise fairness, representation, and equal opportunities for all. They expect businesses to foster inclusive environments, address social inequalities, and take meaningful action on issues such as gender and racial equity. As the most diverse generation so far, diversity and inclusion initiatives are especially important to them, and they are more likely to support companies that demonstrate a genuine commitment to these values.
3. Governance and Ethical Leadership – Transparency, accountability, and ethical decision-making are fundamental expectations. Gen Z wants to work for companies that prioritise responsible governance, avoid corruption, and act with integrity.

Actions Speak Louder Than Words

A strong ESG policy is no longer a ‘nice to have’ but a competitive advantage in attracting and retaining young talent. Companies must go beyond mission statements and actively implement policies that align with ESG principles. This means setting measurable sustainability goals, ensuring diverse leadership teams, and fostering ethical business practices. Organisations that recognise and adapt to this shift won’t just attract Gen Z talent - they’ll build a more resilient and future-ready business.