How do Ethics and ESG Impact GenZ
Attracting Talent and Sustaining Growth
Renewable energies represent another area of significant employment potential. With the increasing adoption of clean energy sources, such as solar and wind energy, there is a predicted rise in demand for professionals specialized in the design, installation, and maintenance of renewable energy systems. This sector offers opportunities for both large companies and small businesses, creating jobs in rural areas and contributing to the reduction of greenhouse gas emissions.
For example, the transition to a green economy provides job opportunities in sustainable construction, where the demand for skills in designing and constructing energy-efficient buildings is steadily increasing. Additionally, information and communication technologies play a crucial role in digital transformation and the implementation of innovative sustainability solutions. This sector presents a wide range of employment opportunities, including software development for monitoring and managing energy resources, integrating renewable energies into the grid, and creating platforms for sustainable mobility.
It’s important to highlight that while the green transition offers ample opportunities, appropriate policies are necessary to support this transformation fairly and effectively. Without a well-considered combination of policies and proper governance, negative effects on the workforce and the economy could occur. In a pessimistic scenario, the lack of adequate policies could lead to job losses and a decrease in GDP of up to 0.39% in the European Union, resulting in significant socio-economic impacts (IREN, ESG challenges 2023).
Therefore, the European Council’s recommendation regarding ensuring a fair transition to climate neutrality underscores the importance of accompanying policies to support businesses and workers during this transitional process. These policies should promote training and skill acquisition to address the new demands of the labor market, ensure social protection for workers affected by structural changes, and foster the creation of sustainable jobs.
In this context, according to the 2022 Diversity Brand Index, companies with stronger ethical cultures outperform their competitors by 40% across all measures of business performance. Thus, focusing on ethics is particularly important for Generation Z, which will comprise 27% of the workforce by 2025 (Diversity Brand Index 2022).
Furthermore, according to data from the European Parliament (2023), this approach could not only bring environmental and social benefits to Europe but could also generate a net economic benefit of €1.8 trillion by 2030²¹.
Hence, the future objective for businesses will be to increasingly establish an ESG (Environmental, Social, and Governance) culture to include and value young individuals and talents. Employees are not only a company’s primary stakeholders; they are also its leading ambassadors. The selection of new resources can no longer be separated from the company’s ESG identity. This opens up the theme of how to foster engagement and share goals, achievements, and a corporate culture of sustainability
