A new trend is emerging among younger career starters and professionals – the so-called “climate quitting”. If a company is not rated as environmentally friendly enough, they tend to turn away and look for a job with a company that supposedly has a better carbon footprint.
Young people pay attention to ESG performance
Silke Anger, head of the education, qualification and employment trajectories research area at the Institute for Labor Market and Vocational Research (IAB), told the editorial network Germany that she can observe how young people are increasingly turning to more climate-friendly companies and industries. This observation is supported by a study conducted by Paul Polman among 4,000 employees, which shows that young workers in particular are willing to make career decisions based on a company’s environmental practices and social commitment. A notable proportion of young people in the UK have turned down job offers due to inadequate ESG (environmental, social and governance) performance from potential employers, according to this study. And the trend can also be observed in Germany. A survey by the European Investment Bank showed that for 81 percent of 20 to 29 year olds in this country, a potential employer’s attitude to the climate is a decisive criterion; For 18 percent of this age group, climate control is actually the most important criterion. In contrast, another study by Wirtschaftsjunioren Deutschland shows that good earning potential is particularly important for 81 percent of 15 to 25 year olds in Germany.
The risk of greenwashing is increasing
Companies are faced with the challenge of not only increasing their environmental, social and governance (ESG) efforts, but also communicating them transparently and authentically. There are various strategies to attract and retain climate-conscious talent, including adopting sustainable business practices, linking executive compensation to the achievement of ESG goals, and providing resources that make it easier for employees to make greener decisions in their everyday work. In a market where there is increasing pressure on companies to adopt environmentally friendly business practices, there is also an increase in greenwashing – a phenomenon in which companies present themselves as greener than they actually are.
EU tightens rules against greenwashing
To address the problem of greenwashing, the European Union recently introduced new legislation. The “Green Claims Directive” stipulates that sustainability seals may only be used on products in the future if they have been clearly certified by a government agency. In addition, it will be prohibited to advertise a product as “climate neutral” if this claim is based solely on emissions being offset by offsetting measures elsewhere. This practice of “offsetting” has previously enabled companies to offset their own emissions by investing in climate projects in other countries or areas and to present themselves as climate-neutral. The European Union considers this misleading for consumers and, with the new directive, prohibits this practice in the future in order to ensure more transparent and honest communication regarding environmental friendliness and climate neutrality.
Editorial team finanzen.net