Businesses need to get serious about their impact on the planet. If they don’t, they risk a customer boycott.
New research shows that 73% of Gen Z believe businesses have a responsibility to make the world a better place, while 71% feel that ‘doing good’ should be central to a company’s mission.
And if a business doesn’t play ball, these 16- to 20-year olds are more than happy to take their business elsewhere.
This mounting pressure – which comes in varying degrees from all consumer groups, not just Gen Z – is providing just the impetus companies need to clean up their sustainability act.
Promises of a healthier bottom line are also playing a part. Sustainability also carries a financial incentive, with sustainable businesses more likely to attract investment, have a lower cost of debt and equity and appeal to consumers looking for more transparent, eco-conscious companies.
But there is still some way to go. According to the International Institute for Management Development, there are two key gaps in businesses’ sustainability strategies:
- Knowing–doing gap: 90% of executives recognize that sustainability is important but only 60% incorporate it into their strategy, and just 25% into their business model
- Compliance–competitive advantage gap: companies need to take a more joined-up approach, creating strategies that address both competitive advantage and the need to stay compliant
When sustainability programs get stuck, consumers will take action. And that’s a risk no business can afford to take.
