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Home ESG FINANCE Business

The ESG Solution to Gen Z’s Sustainability Tug-of-War

How businesses can use ESG reporting tools to bridge the gap between Gen Z’s sustainability values and fast-fashion habits.

byRabia Akram
October 16, 2024
in Business, ESG Tool, Sustainable fashion
Youngsters hold banners, highlighting Gen Z’s commitment to sustainability and the role of ESG solutions in business.

Youngsters demand sustainability, showcasing the need for businesses to adopt effective ESG solutions.

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Many call Generation Z the “sustainability generation” because of their awareness of environmental issues. And why not? Most Gen Z customers favor purchasing goods with sustainable origins. But at the same time, the rise of ultra-fast fashion is also being driven by this generation. This is evident with the success of brands like Zara, Temu, and Shein.

This situation poses a perplexing paradox for companies. How can companies satisfy Gen Z’s quick need for fashion and also be in line with environmental principles?

Gen Z and sustainability values: A business opportunity?

In contrast to previous generations, Gen Z has grown up in a world where climate change is a constant reality. They are deeply involved in global issues as netizens. Many studies reveal that youngsters experience shame and worry over environmental degradation. According to a recent study by Deloitte, 64% of Gen Z consumers are willing to pay more for sustainable products.

For a business, this presents a significant opportunity. Gen Z expects the brands they purchase from to demonstrate real environmental responsibility. So, businesses that fail to address these concerns risk losing a large portion of this powerful customer base.

For companies to thrive, they need to do more than just claim they’re sustainable. They must provide proof through ESG reporting to validate their efforts and build trust. ESG tools like Klimado helps businesses track and communicate their sustainability performance, making it easier to engage with this eco-conscious generation.

Why ultra-fast fashion still attracts Gen Z

Gen Z is (no doubt) aware of environmental issues, but they are also greatly impacted by social media trends. And what’s the result of these trends? 

Overconsumption and purchasing items that are not really required. Even the most eco-conscious person can find it difficult to resist overconsumption when they are exposed to dupes and enormous hauls that are shared daily on Instagram and TikTok.

This is exploited by ultra-fast fashion businesses that provide trendy clothes at prices and speeds that are difficult to resist. The cost-of-living crisis further complicates this. In comparison to slow and sustainable fashion, fast fashion offers a means of staying in style without going over budget for a generation of consumers who are often struggling financially.


Related Articles: What We Can Do About Gen Z’s Climate Anxiety | Slow Living: The TikTok Trend Promoting Personal and Environmental Wellbeing 

Bridging the “attitude-behavior gap” with ESG reporting

The apparent contradiction between Gen Z’s sustainability goals and their ultra-fast fashion consumption is part of what social psychologists call the “attitude-behavior gap.” This refers to the disconnect between what consumers say they value and how they act. While this generation expresses a desire to protect the environment, the allure of cheap and fast fashion often wins out.

Businesses, however, cannot afford to overlook this gap. They can, in fact, solve it. Since 88% of Gen Z consumers say they don’t believe the sustainability claims made by businesses, transparency is more crucial than ever. Sustainable fashion brands need to provide statistics to support their sustainability claims if they are to continue having credibility with this group of consumers.

Companies can use ESG reporting solutions, like Klimado, to give reports on their environmental and social performance. They can show their sincere commitment to environmentally friendly practices and win the loyalty of Gen Z consumers.

***

This article is referenced from Gen Z Supports Sustainability – And Fuels Ultra-Fast Fashion by The Fashion Law


Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Cover Photo Credit: Li-An Lim

Tags: ESG ReportingESG SolutionESG toolGen ZSustainable fashion
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Rabia Akram

Rabia Akram

Rabia is a business student with a passion for sustainability, storytelling and data. Starting in 2021, she quickly built a strong writing portfolio and expanded her skills into data and AI. Now, she helps businesses tell impactful stories through data insights and has volunteered her skills for non-profit organizations.

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