The next generation gives us hope on Earth Day 2021

For many millennial and Gen X consumers, climate change didn’t arrive as a concern early on. For many years, their core beliefs around sustainability were simply that they shouldn’t leave the tap on and they should put trash in the bin where it belonged. And by the time headlines on climate change began to hit mainstream newspapers, it was hard for it to become a top priority for Gen X and millennials. Even if the news worried them, they also had a financial crisis to deal with, mortgages to pay, career ladders to climb, and children to raise.

Gen Z, however, were born from 1995 onwards and straight into the climate crisis. They were the first generation to grow up with the internet (and thus global news) at their fingertips — and they were still in their teens as the severity of climate change became clear. And that experience has galvanized them: in Sweden, Greta Thunberg started a school strike for climate, a now-global movement pressuring leaders for climate justice. In Canada, Anishinaabe water rights activist Autumn Peltier has advocated for clean water in First Nations communities — and taken the stage at the United Nations at 14. And students around the world have joined the Extinction Rebellion movement, pressuring governments to act on climate change through peaceful demonstrations.

This shift is promising in many arenas, but the one area where we’re already seeing a swift change is in the world of business and climate justice. Because Gen Z aren’t only taking to the streets to fight for climate justice: they’re advocating for it with their wallets. Not only are 64 percent of Gen Z willing to pay more for sustainable brands, but nearly as many (54 percent) say they’re willing to pay at least 10 percent or more for a sustainable choice. (Interestingly, 50 percent of millennials feel the same way, compared to 34 percent of Generation X and only 23 percent of Baby Boomers. As Forbes put it: “It appears that with every generation, the quest for sustainability strengthens.”)

Nearly two-thirds of Gen Z care about the sustainability behind the brands they’re purchasing, and over the next few years, we should see that sea change sweep across businesses. Why? There’s three main reasons.

1. Gen Z are about to become America’s biggest spenders

Research suggests that Gen Z consumers already represent an annual direct spending of over $140 billion in the United States alone — and that’s with consumers that are currently between the ages of 9 and 24. The oldest members are only just entering adulthood, while the youngest haven’t started spending yet. And yet, they already make up 40 percent of consumers, and experts predict that they’ll overtake millennials as the largest consumer base in the United States by 2026.

According to a 2019 Porter Novelli survey, 90 percent of Gen Z consumers think companies have a responsibility to help social and environmental issues, and 75 percent will do their research to hold companies accountable. A full third have already stopped purchasing from companies whose values don’t align with their own, according to AdAge.

2026 is just around the corner. If brands today want to stay relevant, they have five years to make a much-needed change and wholeheartedly embrace climate justice and social issues.

2. Gen Z are entering their key working years

Gen Z are only just getting started in the workforce, but they’re already well on their way to transforming business from the inside out. Just like they demand the best from the companies they support, Gen Z employees are also looking to join employers that are educated, opinionated, and values-aligned.

According to a BBMG/Globescan survey, 59 percent of Gen Z employees strongly agree that the more socially and environmentally responsible their employer becomes, the more loyal and motivated they feel at work. A full 74 percent also rank purpose over a larger paycheck when it comes to selecting an employer. As both employees and consumers, 85 percent of Gen Z want to be able to share their ideas with companies to help them improve their social and environmental solutions. Fifty-four percent would like to start their own companies altogether.

With “Generation Green” taking the lead in the workplace in the coming years, expect to see an increasing shift to sustainable and purpose-driven business.

3. Gen Z are demanding change at all levels

Since 2011, children have been taking their cases to court, arguing that governments are putting their very lives in danger by not taking action on climate change. They’ve been marching in the streets. They’ve written books and taken over social media.

"We're in a climate moment right now," environmental activist and Falter author Bill McKibben told Business Insider in 2019. "All these things started to combine to produce this new moment where people are open to change."

That public pressure has helped raise our collective awareness of the urgency of the climate crisis — helping spur change at both the national and international level. Governments worldwide are imposing industrial carbon taxes and publicly committing to carbon neutrality. Of course, there’s more to be done, and Gen Z hasn’t stopped pushing for those changes.

And if governments don’t take further action? Not to worry — by 2024, Gen Z and millennials will make up the majority of voters in the United States, and you better believe they’ll be just as vocal with their vote.

© Angela Wallace Impact Agency

Authored by content co-conspirator Kenza Moller: professional story-telling for impact-oriented companies, agencies and thought leaders.