Profit or purpose?

In the face of economic uncertainty, it can be tempting for organizations to scale back on areas such as diversity, equity and inclusion and sustainability—but at what cost?

Against a backdrop of today’s economic headwinds, it can be common to hear business leaders asking whether they can still afford to prioritize their purpose-driven initiatives and maintain the same level of commitment to positive change for their people and the societies in which they operate. But as we collectively look ahead to the 78th session of the United Nations General Assembly and Climate Week NYC, my response to these leaders is—can you afford not to prioritize purpose?

When it comes to climate, I reflect on the findings of the Deloitte Global 2023 Gen Z and Millennial Survey—now in its 12th year—which show that younger employees want their employers’ values to be aligned with their own, and they want to help drive societal change through purposeful and meaningful work.

Generation Zs and millennials comprise over 80% of Deloitte’s workforce. They likely make up the majority of many organizations’ workforces and I believe that, as today’s leaders, it should be our job to actively listen to what these generations are saying and be intentional about the legacy we leave to the leaders of tomorrow.

Not only is this the right thing to do, it makes business sense. We see this in the importance climate concerns play in people’s career decisions: Over half of Gen Zs (55%) and millennials (54%) surveyed say they research a brand’s environmental impact and policies before accepting a job. One in six Gen Zs (17%) and millennials (16%) say they have already changed job or sector due to climate concerns, with a further 25% of Gen Zs and 23% of millennials saying they plan to do this in future.

Not only does an organization’s actions on climate play a role in attracting and retaining talent, it can also shape career decisions once in role, given that nearly four in 10 respondents said they have rejected work assignments due to misalignment with their personal values.

To me, the findings send a very clear message: this demographic “reads the label”—they do their homework and research before they invest their time or money as employees or consumers. Greenwashing or any other form of paying lip service to sustainability—or other purpose-driven goals—is likely not going to fly with these generations. Business leaders take note.

So, while more than half of respondents agree that their employers are working to help address climate change, they expect more…especially given that a similar share of respondents perceive that their companies have already deprioritized sustainability in recent years due to external factors like the COVID-19 pandemic and the Russia-Ukraine war.

This deprioritization is set against rising anxiety around climate change—in fact nearly six in 10 Gen Zs and millennials strongly agreed/agreed that they had felt worried or anxious about climate change in the last month. The impact on mental health should not be ignored considering that almost half of Gen Zs (46%) and four in 10 millennials (39%) surveyed say they feel stressed or anxious all or most of the time.

Listening and taking action

What are Gen Z and millennial employees asking their employers to do? According to the Deloitte Global survey, one of the most impactful actions respondents would like to see their employers take, in addition to making their operations more sustainable, are providing subsidies for sustainable choices such as public transport and offering education and training on how to make more sustainable choices at work and at home. Gen Zs and millennials are also seeking help from their employers to acquire the skills necessary for the transition to a low-carbon economy. While about half of them believe that their employers are already providing the required training, there still appears to be a significant need for skills development in light of the large number of jobs that are vulnerable to climate change.

At Deloitte, we’re taking these demands into account as part of our WorldClimate strategy, which consists of actions we take and actions we inspire.

For example, over 350,000 of our people have taken our climate e-learning program that helps Deloitte people around the world understand what Deloitte is doing to help address climate change and how they can make a positive impact through responsible choices at home and at work.

Deloitte’s also committed to achieving science-based net-zero emissions and have a 1.5⁰ C near-term (2030) goal in place, validated by the Science Based Targets initiative. We are embedding sustainability into policies and practices throughout the organization and measuring performance against our goals.

Finally, Deloitte’s working with like-minded organizations and initiatives across our ecosystem to help inspire action, increase demand for sustainable products and services, and develop solutions, as well as expanding and investing in our Sustainability & Climate practice serving clients globally as they define their paths to a more sustainable future.

Building a better tomorrow

Coming back to my original question—profit or purpose?— for businesses to achieve long-term, sustainable growth the answer should be profit and purpose. It’s both/and, not either/or—a mutually reinforcing dynamic of purpose and profit where a commitment to purpose and values helps realize sustainable business results.

While news about the state of our climate can be bleak, I’m encouraged by the commitment that Gen Zs and millennials have to sustainability, the future of our planet and their determination to make their voices heard. So as we collectively approach the midpoint of the United Nations Decade of Action to help deliver the 17 Sustainable Development Goals, I’m confident about the future—If today’s leaders can join forces with the leaders of tomorrow, I’m convinced that together we can collectively make a meaningful impact by 2030.