Gen Z ditching ESG?

Consumer interest in environmental, social, and governance (ESG) issues is declining across generations. Senior partner Sajal Kohli and coauthors note that Gen Z consumers in five of six surveyed countries have lost interest in ESG, with a decline of five points since 2023. Millennials’ consideration of ESG in purchase decisions has also declined. Only Gen X and baby boomer consumers in the Netherlands and Australia continue to focus on ESG in their purchase decisions.

Weighing the value of a product versus their own values, young consumers are de-emphasizing the importance of sustainability in their purchases.

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Four bar graphs show shifts in respondents’ opinions on the importance of environmental, social, and governance (ESG) in their purchases, by generation and nation. The nations studied were Australia, the EU-5 (including France, Germany, Italy, Spain, and the UK), Japan, the Netherlands, Sweden, and the US. There’s a disparity between the generations overall, with Gen Z and millennials showing decreased interest in sustainability. Gen X and boomers also show disinterest, but the change is less acute. The exceptions are Australia and the Netherlands, where the older generations increasingly see ESG as important.

Source: McKinsey ConsumerWise Global Sentiment Data, Q1 2024, n = 15,352.

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To read the article, see “State of the Consumer 2024: What’s now and what’s next,” June 10, 2024.