Generation Z Catalysts of Sustainability

Social beasts, tech optimists, tech realists, authentic, fluid, downloading, evolving, be the change, society matters and just do it! Some of the words and phrases that aptly describe the social disposition of individuals born between 1995 and the early 2000s, Generation Z, this is according to Kantar’s 2022 special Gen Z report. Approximately 20% of Africa’s population is aged 15-27, with Africa having the largest population of young people in the world. The Africa Gen Z populace therefore position themselves as viable catalysts, for the regions economic growth as well as advancing its sustainability agenda. It is therefore paramount for businesses, governments, and civil societies to understand this huge cohort of innovative and creative individuals.

Sustainability is the art of maintaining a balance between people, planet, and profit goals, and is increasingly becoming a key subject of interest for businesses and employees alike. Both are expressing interest on the impact of their operations on the planet, the people involved in their supply chains all while they strive to achieve set out profit targets. According to Deloitte’s Global 2022 Gen Z and millennial survey, nearly two in five Gen Zs have rejected a job offer or assignment because it did not align with their values. In the same breath, those who are satisfied with their employer’s social and environmental impact and their efforts to create a diverse and inclusive culture are more likely to want to stay with their employer for more than five years.

People are the heart of business enterprises, even with the rise of the fourth industrial revolution, that is characterised by disruptive technologies such the internet of things and artificial intelligence, people remain integral to successful accomplishment of organisational missions and visions. Equally employee wellbeing, employee safety, work-life-balance, diversity, and inclusion are key considerations for Gen Zers. According to a 2022 survey by DoSomething, 75 percent of Gen Z respondents wanted to see brands that were ensuring employee and consumer safety. It also noted, if said brands were providing falsified information on the same, they would be the first to raise a redflag. Additionally, most Gen Z consumers prefer to buy sustainable brands and are willing to spend 10 percent more.

In 2021, more than 1100 employees from a leading multinational consulting firm, McKinsey & Company wrote a signed and open letter to the firm’s top partners urging them to disclose how much carbon their clients spew into the atmosphere. It is also reported several employees resigned as a result, with claims that the firm continued engaging with fossil fuel companies. This led to a Climate Action Day organised for employees to update them on the firm’s progress towards achieving their net zero carbon footprint by 2030. This shows that Gen Zs want their voice heard and equally to drive change within the organisation and if these changes don’t happen, they are willing to leave. Gen Z employees also want to derive a sense of meaning from their work and work for organizations that are having a positive societal impact. To attract and retain this crop of talent, business leaders need to listen to them and empower them to drive change.

The Build Back Better Framework: Introduced by the President of The United States of America, Joe Biden aims at driving efforts to combat climate change in America. This is one of the many sample strategies that key stakeholders around the world, ranging from governments, civil societies and businesses are devising to curtail the effects of their operations on the planet over the years. There is no Planet B and protecting the environment is cited as a top priority for Gen Zs. They also believe that the relevant stakeholders need to do more to fight climate change and its effects on the planet.

Globally and across the region, businesses and governments are taking the necessary steps to ensure that Africa competitively competes in the digital age. It is estimated that the digital economy will bring an additional $300 billion to Africa by 2026. Well, the Covid-19 pandemic catapulted us into the fourth industry revolution making the world truly a global village, with remote working and online shopping being the new normal. It is therefore extremely important for Africa to achieve its uttermost potential by tapping into the Gen Z talent. This technologically survey generation is the key to Africa’s wealth, with the launch of start-ups geared towards solving Africa’s most pressing problems including financial inclusion, access to sustainable agricultural practices, access to clean water and energy.

Scandinavian countries like Sweden, Denmark and Norway are considered the gold standard of clean energy. Sweden for example, gets 75 percent of its electricity from non-carbon sources, 16 percent from wind power and nuclear plants. Key driver for this tremendous adoption is policies such carbon pricing making renewables and nuclear more cost competitive. This therefore sends a strong message on decarbonization. Closer home, Kenya currently gets more than 90 percent of its electricity and 74 percent of its overall energy from renewable sources.

According to CMS Law, Kenya adopted the Energy Act No. 1 of 2019 (the Energy Act) to promote the generation of renewable energy in Kenya, among other objectives. Furthermore, the formation of the Energy and Petroleum Regulatory Authority (EPRA),under the Energy Act to undertake the following functions: regulate production, conversion, distribution, supply, marketing and use of renewable energy; collect and maintain energy data; ensure, in partnership with the Kenya Bureau of Standards, that only energy-efficient and cost-effective appliances and equipment are imported into the country; and co-ordinate the development and implementation of a national energy efficiency and conservation action plan.

With incentives being a key driver to encourage renewable energy adoption, Kenya has the a number of them, such as; for companies operating within a Special Economic Zone, the chargeable tax is at the rate of 10 percent for the first 10 years from the date of first operation and thereafter 15 percent for another 10 years, exemption from stamp duty for registration of companies, exemption from stamp duty for instruments executed in transactions relating to loans from foreign sources for purposes of investing in the energy sector, investment deductions at the rate of 100 percent for power generating plants and equipment including the building housing the power generating plant as well as those operated within Export Processing Zones and at 150 percent where the plant is located outside Nairobi, Mombasa and Kisumu, insurance cover by the Multilateral Insurance Guarantee Agency (MIGA), double Taxation Agreements (DTAs) between Kenya and a number of countries, development of Public Private Partnerships by the Government which are driven by the Public Private Partnership Unit pursuant to the Public Private Partnership Act No. 15 of 2013, the Government also issues letters of support that give comfort to both project companies and their financiers to enable project implementation, Kenya has no restrictions on converting or transferring investment funds and capital repatriation and remittance of dividends and interest to foreign investors are guaranteed in the Foreign Investment Protection Act Chapter 518, Laws of Kenya.

With some of the top concerns among the Gen Z including climate change, unemployment, and mental health there lies an opportunity to come up with turnkey ideas to some of the world’s pressing challenges. It is apparent that sustainability offers a vast array of opportunities to quench the needs of Gen Zs. The Climate Launch Pad is one such opportunity. A global competition where entrepreneurs and inventors can share their ideas on how their concept and business idea can mitigate or adapt to climate change and possibly win a grand prize of € 10,000. From driving diversity and inclusion conversations with senior leaders through forums like the One Young World, to advocating for proper waste management, participating in tree planting initiatives, to cleaning beaches and large water bodies, recycling and upgrading plastics and utilising their unparalleled technological skills to offer digital training to marginalised communities. These activities offer the ability to relate and interact with others eliminating the feeling of detachment from reality, avoidance, withdrawal, and suicidal thoughts thus facilitating healthy mental well being and a sense of purpose.

It is apparent, these next-to-win generation expect to be more than users – they want to be seen as partners and influencers. Governments, venture capital firms, private equity firms, impact investment firms, development bodies, boards, and other senior business leaders, need to come up with policies that catalyse their ideas, work with them, empower them, coach them, invest in their ideas, offering new opportunities to contribute the organisation’s story. This is co-creation on new terms as their values are permission-based, so going beyond core products and services to offer tools, platforms, ideas, and programmes that enable personal growth. Like the butterfly effect, the actions might seem small however the compounding effect is what will determine if future generations have a place to call home.