Why Gen-Z, Millennials Are Abandoning ESG

While Gen-X and Boomers continue to emphasize environmental, social, and governance (ESG) initiatives, it seems the latest generations have lost interest and are now abandoning ESG initiatives.

According to a recent study conducted by McKinsey, five out of six nations indicate a precipitous drop in ESG interests by Gen-Z, while all six nations studied, Millennials have altogether lost interest. These nations include the US, Japan, Australia, the EU, Netherlands, and Sweden.

But why?

There's a host of reasons, but primarily it boils down to a lack of trust. Skepticism and a desire for a more immediate result have led these latest generations of adults to abandon ESG. Call it social responsibility or environmentalism, they've given up.

The added pressures from inflation, rising cost of living, gas prices that have nearly quadrupled since they were born, and top it off with housing that is completely out of reach, have propelled this movement. Movement away, that is.

Lastly, these generations no longer have to "call dad" to fix a flat, or figure out how to change the oil in their car. Why would they, when Google is but a reach-into-the-pocket away? Today's generations have information at their fingertips AND it's the default and normal way of life, whereas, my first inclination is still reading the manual or asking a friend for help.

This information overload has enabled them to reach their Congress person, or start a petition, or even schedule a mass demonstration on one of the busiest freeways in the nation within a day or so. It's powerful.

So, why wait for Amazon, Google, or Microsoft to reach their ESG goals in the next 5-10 years?

To be clear, the McKinsey study did not indicate the Gen-Z and Millennials gave up on environmental or societal causes. It actually indicates that they've taken matters into their own hands.

Maybe it's time. Time to be more timely and action oriented, rather than wait on government or large corporations. What are your thoughts?