Almost 400 young people (2 per country) from the 197 member countries of the UNFCCC (United Nations Convention on Climate Change) met in Milan from 28 to 30 September to draw up concrete proposals on the most urgent issues concerning the climate agenda. The event, named Youth4Climate: Driving Ambition, was a great success and is part of the process of increasingly active involvement of young people in the climate cause, which began with the United Nations Youth Climate Summit, held in New York on 21 September 2019.
In a way, if we were to replace the term Generation Z with that of the Green Generation, we would not be far from reality. This generation is seeking to impose itself at the helm of the global sustainability agenda and is forcing brands and companies to scrap past operations and product lines and replace them with sustainable variants.
On the market side, Generation Z is playing a significant role in three ways - distinct but interconnected. Several studies have shown that Generation Z exhibits socially and environmentally conscious purchasing behaviour. New consumers tend to support brands that have sustainable, ethical and eco-friendly product lines, supply chains, ethos and processes. As we enter a new decade, being associated with and actively supporting ethical and conscious brands is becoming a new status symbol - and the planet has everything to gain from this change.
Investors have realised this trend and favour forward-thinking companies that play a positive role in the sustainability agenda. Gen Z's focus on sustainable, green and ethical companies is also reflected in their increased investment in companies with effective and ethical corporate governance systems, making those who have been left behind come to terms with the situation and thus promoting change.
Young people in Gen Z are also seeking to change companies from within, starting with the role of employees. Gone are the days when the main focus of employees was financial stability. Generation Z is challenging employers on sustainability issues, holding them accountable for conservative processes and demanding green changes.
Gen Z and sustainability: what is the role of companies?
Innovative start-ups and SMEs have long put sustainability issues at the top of their list of priorities to achieve market success. Sustainability in words is no longer enough, Gen Z has learned to distinguish between greenwashing and genuine impact.
On the other hand, new consumers are willing to reward their efforts on the road to the green economy with
· Increased spending on sustainable brands. Generation Z is not afraid to pay a premium price for the products or services of truly sustainable brands. This focus is not only on end products, but also on processes.
· Increased loyalty to sustainable businesses. A large proportion of Gen Z shoppers seek to buy products and support brands that align with their values. They are willing to switch brands if they find more responsible alternatives and are loyal to companies that are green or demonstrate sustainability in action.
· Boycotting brands that do not pass the test. A significant proportion of Gen Z shoppers say they are willing to stop buying from brands that are not in line with their values altogether. This obviously has serious repercussions on sales, which can be matched by equally important image damage.
How can companies reach Gen Z in an authentic way?
Conventional marketing strategies do not always suit this new group of consumers who seek an honest and direct relationship with the company. This is a very aware, informed and diversified public, with whom it is essential to initiate communication based on
· Transparency. Gen Z consumers are very rarely influenced by advertising and other marketing strategies - instead they analyse data and make decisions independently. For this reason, it is important that companies prioritise transparency in supply chains, production, finances and values by disclosing critical information on their websites and social media. This shows that the company has nothing to hide, which adds an important level of trust.
· Authenticity. Gen Z customers can easily see through the marketing jargon and seem to prefer companies that are honest and relatable. Companies do better to be simple, clear and honest in their messaging, declaring mistakes when they happen and working to rectify them.
· Shared cause and values. Gen Z wants to buy from companies with whom they share a common ethos and value system. Communicating the causes that companies care about is a key to connecting with these discerning, informed and aware consumers. Whether it's donating to charities with every purchase or working with underrepresented groups, giving a green, ethical or sustainable ulterior motive to the purchasing action is a very important factor for Generation Z.
In conclusion
There is a new generation of Italians who refute the rhetoric of ineluctable decline and Italy's fall in competitiveness and who demonstrate that a new development model is already a concrete and productive reality. Many innovative start-ups and SMEs are following in this wake. We expect that politicians will also commit themselves to giving greater centrality to the issues of sustainability and the environment in government action, encouraging these new entrepreneurs who innovate and create jobs. We would like to see a new green 'Made in Italy' brand very soon.