Gen Z are changing the rules of consumerism through the demand of sustainability to be embedded into business value chains. The purchasing decisions of Gen Z at a consumer and business level aren’t determined purely by price, quality, or convenience. Increasingly, they’re shaped by sustainability, ethical practices, and a picture of the company’s carbon footprint. Brands that fail to acknowledge these values risk losing relevance in a marketplace dominated by Gen Z’s influence.

For Gen Z, there is now an expectation that businesses don’t just provide a high value product or service, but that they also hold a set of values that resonate with them. This can often be a deciding factor in who they choose to do business with, and thus issues like sustainability are now increasingly being baked in as a baseline requirement. Research consistently shows that young consumers expect companies to adopt environmentally responsible practices, with Forbes finding 62% of Gen Z are willing to pay more for ethically produced goods. This is evidenced by Gen Z led boycotts of fast fashion brands like Shein who doubled their emissions in 2023.

New business opportunities and commercial value arise as a result of these new demands. Second-hand platforms such as Depop thrive because Gen Z sees re-commerce as both a sustainable choice and an opportunity to support a circular economy through their purchasing habits.

It’s unsurprising as the Gen Z generation are the generation that grew up in the arena of climate change headlines, with environmental disasters now becoming a staple news item. This has made sustainability a deeply personal and therefore defining issue. As Gen Z ages and progresses through the business world and starts to take more positions of leadership, we are likely to see a higher rate of adoption of sustainability practices. As a result, sustainability is deeply personal.

With this personal connection and expectation of embedded sustainability in business comes a demand for transparency around businesses carbon footprints. Businesses will be increasingly expected to provide information on the environmental cost of their purchases. Gen Z have shown they prefer brands that actively disclose and work to reduce their impact.

This kind of openness also negates the accusations of “greenwashing” that some companies might receive by providing measurable proof of impact.

A good example of this the plant-based food industry. Brands like Beyond Meat and Oatly have successfully marketed not just health benefits but also the reduced carbon footprint of their products compared to traditional meat or dairy. Brands that are plant based could rest on their laurels and project of sustainability without proper investigation and verification of their carbon outlay. These two companies have done the opposite. They have used sustainability measurement as a reason to do business with them, Beyond Meat have been able to show their burger uses 90% less greenhouse gas emissions than a traditional beef burger, while Oatly’s milk uses almost 13 times less water per lite of milk. Therefore, this secures buy in from Gen Z consumers, with companies like Beyond Meat and Oatly provide meaningful contributions to systemic change.

Consequently, companies cannot treat sustainability as paper over the cracks solution, instead it requires a full examination of business operations. To win Gen Z business and thus sustained demand in the future, brands must embed sustainable practices into their DNA. This means examining Scope 1,2 and 3 emissions, engaging the supply chain and embracing circular economy models. Through achieving these steps, businesses can communicate these efforts credibly, using data and storytelling that resonates with a sustainability conscious present and future market.

Jacob Morrey, Account Manager

Neutral Carbon Zone