How Millennials and Gen Z Are Driving Growth Behind ESG

Generation Z, people born between 1995-2010 and more commonly referred to as Gen Z, are the first generation to be digital natives as a world without the internet, mobility and apps, and social networks is not something they have ever experienced.

In the U.S., Gen Z accounts for roughly 21% of the population while on a global basis they account for 26% of the population, equating to some 2 billion people. The size of this cohort makes it one to watch. Case in point, a recent survey by asset management firm Amundi and the Business Times found that 82% of Gen Z and close to two-thirds of young millennial investors have exposure to Environmental, Social and Governance (ESG) investments.

So, what does the data tell us about those values and strategies? Let’s look:

• For Gen Z, consumption means having access to products or services, not necessarily owning them. Think Uber (UBER), Lyft (LYFT) and any streaming service vs. owning records, CDs and DVDs.
• According to a recent study, Gen Z shoppers demand sustainable retail. The majority of Generation Z shoppers prefer to buy sustainable brands, and most are willing to spend 10% more on sustainable products. Why? Because three-quarters of Gen Z consumers state that sustainability is more important to them than brand names.
• According to Nielsen, 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally-friendly products.
• A Pew Research Center survey finds Millennials and Gen Z stand out for their high levels of engagement with the issue of climate change.
• 90% of Millennials are interested in pursuing sustainable investments
• One-third of millennials often or exclusively use investment products that take ESG factors into account 19% of Gen Z, 16% of Gen X and 2% of baby boomers.

Source : https://www.nasdaq.com