Young professionals feel responsible in driving the ESG agenda but lack empowerment from leadership, says KPMG International

London, 14 November 2024: Young professionals around the world feel they are lacking the right tools, autonomy and empowerment needed from leadership to support their organization’s climate ambitions, according to a recent KPMG International report.

The annual Leaders 2050 report reveals that two thirds (66 percent) of respondents feel responsible for driving Environmental, Social and Governance (ESG) impact in their organizations, but only 10% feel they have the autonomy or are empowered to act.

The report, which surveyed over 800 young people (aged 18 to 35) across 48 countries, highlights the disconnect between the thoughts, perspectives and experiences of young people and those of senior leaders across both private and public sectors, when it comes to creating and establishing ESG strategies in business. It also emphasizes the value young people are placing on sustainability in their careers, community and personal lives.

A company’s approach to ESG is mentioned in the report as one of the key elements young professionals consider when selecting a career, with almost half (48 percent) of the respondents stating they would leave a job if their organization didn’t demonstrate a commitment to climate, sustainability and social impact. 63 percent also agree that they consider a company’s ESG credentials when selecting a potential employer.

As climate change continues to grow in severity and frequency, there is an increased need to mobilize both action and capital. Young professionals stand to inherent the responsibility and capital allocation power needed to reach net zero as they ascend to leadership roles in these next pivotal years. They are an untapped resource who understand the wants and needs of their generation with a systems-level approach and understanding of the global economy.

Avery Johnstone,

Global Decarbonization Hub Manager & Global Chair, Leaders 2050,

KPMG International

Overcoming barriers to change

Communication and transparency of a company’s sustainability strategy plays a pivotal part in building trust and improving a young professional’s engagement in the workforce, according to the findings. Furthermore, over half of the respondents (57 percent) cite ‘learning and development opportunity’ as a key tool, followed by ‘technology and digital tools’ (43 percent), and ‘external networking opportunities’ (40 percent).

On the road to net zero, the younger workforce note cost of decarbonization (29 percent) as the largest organizational barrier to meeting climate ambitions, closely followed by a lack of will from senior leaders (26 percent). As it stands, just half (49 percent) agree that their organizations have fully embedded ESG principals into their business strategies, and the same percentage believe that their ESG impact strategy is ‘middle of the pack’ compared to industry peers.

The report emphasizes that involving the next generation in collaboration and decision-making is not only vital in supporting ESG strategies, but for business survival, stating that if leaders fail to do so, they risk higher employee turnover, loss of staff confidence, lack of credibility and reputational risks.

Avery added:

When selecting a career, young people are prioritizing businesses that align with their values and purpose and are seeking out organizations that are driving forward the ESG agenda. They expect companies to demonstrate that their ESG commitments are being met with responsibility and tangible action.

They also feel a responsibility to be a part of the conversation around sustainability and help drive the ESG agenda. Restricting ESG disclosures to senior leaders in the business results in a lack of opportunities for young people to integrate their perspectives and ideas into the decision-making process, and ultimately, leads to organizations missing out on meaningful, diverse and innovative perspectives on key sustainability issues.

Business leaders need to find strategies that nurture their talent and create safe and inclusion spaces for intergenerational dialogue that allows the younger workforce to learn from senior leadership, acknowledges their voices, and empowers their passion. By listening to and understanding the perspectives of young people, leaders can help foster collaboration and drive longer-term solutions that can stand the test of time

For further information, please contact:

Dannielle McAllister, Global Media Relations Manager
KPMG International
T: +44 7704675753

E: dannielle.mcallister@kpmg.co.uk

Notes to Editors:

About Leaders 2050

Leaders 2050 is a professional network for future leaders across sectors, around the globe who have an interest in creating a more sustainable future through net zero ambitions, clean growth strategies and inclusion, diversity and equity (IDE). The network’s mission is to equip the next generation with the insights, skills and opportunities needed to drive a better tomorrow. To find out more, visit: Leaders 2050 - KPMG UK

To enter the Leaders 2050 digital report experience, visit: KPMG Virtual Tour | Explore in 360°

About KPMG International

KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.

KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.

KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. For more detail about our structure, please visit kpmg.com/governance

Avery Johnstone

Associate, Climate Risk & Strategy

KPMG in the UK