The recent UN climate summit in Glasgow has been a top news story for many good reasons, most importantly the severe threats to our planet and hence the urgency for global coordinated action. But there was another dynamic taking place in Glasgow that brand leaders around the world should recognize as a significant challenge going forward. Over 100,000 activists passionately voiced their criticism at this summit, predominantly young people or Generation Z (born between 1997 and 2012), led by the 18 year old Greta Thunberg from Sweden.
The main objection of these Gen Z protestors was that all recent climate change summits, including this one, have produced too much talk and too little action. As Greta Thunberg claimed, “they have led us nowhere. Too much “blah, blah, blah”. She criticized the COP26 as “just politicians and people in power pretending to take our future seriously”.
A brand is basically a promise, but long term success will depend on whether those promises are delivered. More than any other generation, these young people are driven more by passion and cause. They have witnessed the natural calamities from climate change – e.g. floods, wild fires, pollution, storms, draughts, etc. and are frustrated with the failures of business and political leaders to take adequate action. They perceive their original environmental promises as unrealistic and even dishonest. And now they have grown up under the looming threat of a dying planet and all the uncertainties associated with it. Gen Z wants tangible action now, not just “green washing” promises.
Generation Z Profile and Values
Gen Z is the first sector of our society that has no memory of the pre-internet world. It is the largest generation in the world with 2.5 billion strong, including 68 million in the U.S. The brand consumption power of these 9-24 year olds cannot be ignored; their disposable income will expand to $3.2 trillion by 2030, surpassing the Millennials in spending power.
Their values and desires are similar to Generation Y (Millennials, born 1981-1996) which was the first digital generation, but their passions are more focused and intense:
- By far, their biggest concern is climate change (76%, source: CNBC), including how it will impact their future spending.
- Their overall distrust in brands is pervasive, with 71% (source: Havas) saying they have little faith that brands will live up to their promises. There is a huge gap between what they want and their trust in brands to deliver it.
- They want and expect their brands to be authentic and to do good. For example, 82% trust a company more if the images used in their advertising are actual customers.
- Gen Z prefer to buy brands that are environmentally sustainable (62%) and support social causes (72%), which reinforces the importance of showing that brands stand for something more than revenues and also publicly communicating this.
- They struggle with the responsibility of carrying a “transitional burden” of overcoming the unsustainable habits of Baby Boomers (born 1946-1964) and Generation X (born 1965-1980), and to set up a sustainable future for themselves and their children.
In short, Gen Zers want brands to be transparent, trustworthy, authentic and relevant. More than anything else, sustainability is the key. They will be making purchase decisions based on a brand’s sustainability practices which should ideally reflect their environmental philosophy. Even with higher costs, 73% said they would be willing to pay more for sustainability. And in their minds, sustainability implies transparency and trust that a brand’s promises for environmental integrity are actually being delivered over the long run.
The noteworthy criticism at the UN summit in Glasgow by the Gen Zers of the “blah leaders” for not delivering on their environmental promises is only the tip of the iceberg for what we can expect in the future. The surging power of this important generation will re-shape how business and political leaders develop, communicate and ensure a brand’s long term success.
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