Want Gen Z to throw their Bitcoin at your business? Listen to Greta.
The recent School Strike for Climate Change attracted more than 3 million people globally. The business world must take note of the sea change that is occurring in the hearts and minds of young people. Their message is simple: get with the climate change agenda or face becoming a pariah in the market.
Regardless of whether you think of Gen Z’s demands for climate action are mere virtue signalling *rolls eyes*, it remains that an entire generation of consumers has come out in force against unsustainable business practices. And, if you truly agree with the science and the catastrophic effects of the (at this point) very likely scenario in excess of 2° by 2050, then you’ll know that this is their Great Depression or WWII experience — and it’s going to fundamentally alter their behaviour as consumers.
Broadly speaking, activism in recent memory has typically revolved around social issues and injustices like the refugee crisis, the Iraq war, LGBTI or indigenous rights. While these are all important causes, they haven’t necessarily been direct responses to contemporary business practices. The climate crisis goes to the very heart of the business world and finds it wanting.
The climate crisis goes to the very heart of the business world and finds it wanting.
A new report by Deloitte’s open innovation initiative, D5, shows how profoundly the climate crisis is shaping the attitudes of young people. Overwhelmingly, respondents indicated that they’re all too aware of how little impact personal interventions like recycling are having on the climate crisis and this is leading to disillusionment with the options businesses have in the market. tl;dr? Deloitte found that corporations are considered most accountable for making changes towards reducing negative environmental impact.
How about this recent report by Swiss Bank, UBS, found that 21% of 6,000 respondents from the US, Germany, France, and the UK are actively reducing the amount of air travel they do based on a phenomena called ‘flight shame’. Seems like Greta’s trip to the US via sailboat is making people feel a bit guilty (check out aptly named Shame Plane by Swedish designer, Viktor Müller, if you don’t know why). If the trend continues, UBS estimates that this will reduce Airbus’ revenue by approximately $4.5 billion in the next financial year.
People know that buying a KeepCup is just a band-aid solution that masks systemic unsustainability — and now, they’re hitting the streets to show the business world that they know who’s to blame.
This represents a unique challenge and opportunity. On the one hand, people are frustrated with the influence of supply chains, product designs, business models, and business strategies that they have no power to change. On the other, you’ve got 300,000 people in Australia alone that recently took to the streets and demanded (quite loudly) that they are desperate for sustainable alternatives. These weren’t barefoot hippies either. These were inner-city, upwardly mobile young people and families that have major collective purchasing power.
Right now, they’re nagging their parents to make serious lifestyle changes before they become fully-fledged, cash-wielding consumers themselves.
What’s surprising is how slowly businesses are reacting to the unserved needs of this growing customer segment. Granted, many incumbents are actively working on their transition strategies to become carbon neutral by 2030. But, all it takes is one savvy startup to disrupt the big end of town by pursuing an aggressive sustainability strategy and set the new bar.
The signals of change are already here: relative newcomer Powershop has recently gone to market with a 100% carbon-offset energy plan, Apple is fast pivoting to a service-based business model, and Aussie fashion retailer, The Iconic, has released a catalogue of sustainable items for fashion-conscious young things. Check out the Not Business as Usual Alliance if you want more proof of 3000+ Australian and New Zealand companies who have thrown their weight behind the climate movement.
This isn’t a case for doom and gloom. Customer demand has always meant a wealth of opportunity for forward-thinking businesses! Want the respect and loyaltly of anyone with half a brain in the next decade? Make a real commitment to adapting the systems you’ve got in place to be sustainable.
Better yet, be the first to openly market carbon-neutral products and services, provide consumers with the right to repair: your services won’t come with the guilt and anxiety associated with carbon-based emissions, for crying out loud! Gen Z will *literally* be throwing their Bitcoin at your feet!
But seriously, listen to Greta. Not only will your business be way ahead of the defining trend of the next decade, but sustainability will be the new business as usual by the time others catch up — leaving you with plastic-free blue oceans to explore in 2030.
