Greenwashing amongst UK companies remains a major threat to consumer behaviour and now extends to staff retention of younger workforces.
A new report from SaveMoneyCutCarbon, Britain’s leading sustainability consultants, has unveiled that Gen Z is more unwilling than ever to put their money in the pockets of businesses that don’t put sustainability at the forefront, and one in three (33 per cent) are actively avoiding joining companies with no ESG strategies.
Not only jeopardising the nation’s already failing net-zero race but also the survival of millions of UK businesses, as the young workforce and consumers become more attuned to their green consciousness. According to research from Clearpay, by 2030, Gen Z and Millennials will account for 39 per cent of the UK’s total retail spend, solidifying them as the next mammoth consumer group to appeal to.
It’s becoming ever more important for businesses to be transparent and prove a genuine commitment to their environmental initiatives, or risk facing new greenwashing litigation, loss of profits and staff.
SaveMoneyCutCarbon’s report found that Gen Z, set to be the workforce of tomorrow, actively avoid companies with poor ESG strategies, with 35 per cent only supporting businesses that put sustainability at the forefront of their operations.
Mark Sait, sustainability expert and CEO/founder of SaveMoneyCutCarbon, comments on how businesses can continue to attract customers by avoiding company greenwashing:
“Environmental, Social, Governance (ESG) is the new buzzword, part of a new business language that is rapidly permeating the public sector and the board rooms up and down the country. Investors, in particular, are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.
“Consumers are demanding it and finance is becoming dependent on it and as a result change is happening. From this, new exciting career opportunities are being created and organisations that are embracing ESG seem to be attracting and retaining the most driven staff.
“For organisations that are seen to embrace and really deliver on ESG, being mindful of those that talk the talk but don’t walk the walk often labelled as “greenwashing” – it is increasingly becoming a new way to position themselves, to attract and retain staff of all ages and levels. Staff are voting with their feet.
“Tomorrow’s workforce is set to propel it much further. Younger workers are already “climate quitting” for more environmentally friendly jobs, a recent KPMG survey of 6,000 UK workers showed.
“For many businesses, the challenge is where to start and what steps are needed for net zero, from accurately reporting the four scopes to engaging with their teams. With trillions of pounds flowing into companies that can measure & demonstrate, excellent Environmental, Social and Governance (ESG) policies, this is the right time to give businesses the rigorous frameworks for reporting.”
By Mark Adair – Correspondent, Bdaily
