
Forbes reports that Gen Z’s commitment to sustainability has reshaped how businesses approach their environmental and social responsibilities. However, this generation demands more than just vague promises. They expect brands to demonstrate measurable impact and transparency, and companies that fail to deliver risk losing their trust and loyalty.
In recent years, the buzz around ESG (Environment, Social and Governance) principles has waned. This is partly because Gen Z has grown skeptical of superficial marketing.
According to experts from sustainability-focused firms like Aspen One's Auden Schendler and Marshall Sustainability's Pip Cross, businesses need to transition from talking about sustainability to taking tangible actions that deliver real-world results. Transparency is the key—brands must show their efforts through consistent data and measurable outcomes.
In fact, companies looking to thrive in 2025 and beyond must reframe sustainability as a critical risk-management tool, much like cybersecurity or operational efficiency. According to Beehive Climate founder Adriel Lubarsky, transparency and measurable impact are essential to bridging the gap between profitability and purpose.
For example, UK energy start-up Octopus has gained traction with Gen Z by integrating sustainability into its core identity. With innovations like a live tracker for wholesale energy prices, Octopus demonstrates accountability and transparency, winning both trust and investment from young consumers. Their approach reflects a broader trend: brand succeeding in the sustainability space are those that align their messaging with verifiable impact.
Gen Z’s skepticism about traditional ESG practices doesn’t mean they’ve lost interest in sustainability. A Morgan Stanley survey shows that 73% of Gen Z still values sustainable investing, but they demand proof of impact. Marketers must back up claims with detailed data and showcase real progress to regain their confidence.