How millennials are shaping the ESG agenda in corporations

ESG principles—environmental, social, and governance practices implemented by companies—are increasingly important to investors, consumers, communities, and public authorities. This is because the need for environmental conservation, good governance, and social responsibility fosters a more just and balanced society. 

The number of Brazilian companies adopting these principles, or at least declaring themselves adherents, has been growing in recent years. The 2023 ESG Brazil Panorama survey examined the adoption of ESG practices in the Brazilian market. One highlight shows why companies adhere to the ESG pillars: for 61% of respondents, the practices aim to strengthen the brand's reputation in the market, and only 40% stated that ESG aims to reduce environmental, social, and governance risks. 

Examining businesses for sustainability and good social and governance practices is a trend, especially among younger generations. In this sense, more than 60% of millennials – those born between 1981 and 1996 – say they would feel more inspired by a company with a strong ESG policy, and are also more loyal to such companies. This is shown in research organized by the consulting firm Korn Ferry on the Future of Work.

This is because younger generations of consumers observe all the processes of brands until the product reaches their hands, considering the social and environmental impact to choose a product or company. The same holds true when choosing to work for a specific company.

For Andrea Moreira, CEO of Yabá Consultoria, which operates in the area of Sustainable Management and Social Engagement, winning over, engaging, and learning to work with millennials is a challenge and an opportunity that contributes to enhancing the purpose of companies, revisiting and simplifying the way of working, towards development.

Beyond that, this generation represents challenges for most business leaders, as employees are increasingly seeking flexible companies that, at the same time, have an organizational structure that values social responsibility and good governance. This means that it is essential for companies to have ethical and transparent conduct and responsibility throughout their entire supply chain. 

ESG and the Intergenerational Exchange

The 'S', in ESG, refers to social diversity, including initiatives that eliminate biases. Therefore, intergenerational relationships—the exchange between generations within companies—offer benefits to both experienced professionals and millennials.

Ageism is an urgent issue in society and businesses. It's a strategic concern because, in the desire to keep brands young or even due to innovation concerns, people over 50 are often disregarded in hiring processes. On the other hand, companies also lose out with the complete "juniorization" of their teams. When companies don't value intergenerational integration, there are significant internal losses that also impact the external audience," Andrea assesses.

Each generation has a different perspective on various aspects, and, obviously, these experiences impact how these professionals adhere to and value the culture adopted by companies.

Diverse perspectives are fundamental to the growth of organizations and society. Understanding traditions and embracing new ideas is crucial for businesses, as the future is a product of how differences interact and progress together.