Climate Quitting (1/2): A Wake-Up Call for Employers

In recent years, the trend of climate quitting has emerged, driven by Gen Z and Millennials leaving jobs over environmental concerns. This shift underscores the importance of sustainability in career choices, with many young professionals prioritizing companies that align with their values. Studies show significant numbers of young workers have left or plan to leave jobs for greener pastures, highlighting the need for businesses to adapt.

Companies failing to address these concerns face high turnover and talent attraction challenges. By committing to sustainable practices, transparent policies, employee well-being, and ethical finance strategies, employers can retain and attract top talent while contributing to global environmental efforts.

The Rise of Climate Quitting: Leaving and Not Considering Jobs

According to the 2024 Deloitte Global Survey, climate quitting is on the rise in two significant ways: employees are leaving jobs and not considering new ones due to environmental concerns. Two in ten Gen Zs (20%) and Millennials (19%) have already changed jobs or industries because of these concerns, and another 26% of Gen Zs and 23% of Millennials are planning to do so in the future.

This trend is not limited to a single region; it's a global phenomenon. In the UK, half of Gen Z employees have resigned from a job due to a conflict in values, with 48% of those aged 18–41 willing to take a pay cut to work for a company that aligns with their sustainability values.

McKinsey's recent research corroborates this, showing a growing preference for sustainable employers among young professionals worldwide.

The 3 Driving Factors Behind Climate Quitting

1/ Alignment with Personal Values

Gen Z and Millennials increasingly reject employers or assignments that don't align with their values. The Deloitte survey reveals that 50% of Gen Zs and 43% of Millennials have turned down an assignment or project based on their personal ethics or beliefs. Nearly as many (44% of Gen Zs and 40% of Millennials) have turned down an employer for similar reasons. This shift underscores the importance of aligning corporate values with employee expectations.

Fabien Lamaison, CEO of Positive Finance, shares his experience: “Before founding Positive Finance, I worked as a self-employed consultant for over a decade and avoided large corporations that didn't align with my values. Eventually, I decided it was time to work on climate more actively. Today, I see a growing number of young professionals making similar choices, prioritizing the planet over traditional career paths. Companies must recognize this shift and integrate sustainability into their core strategies to retain and attract top talent.”

2/ Desire for Sustainable Practices

When asked where they would like their employers to invest more resources to help fight climate change, 25% of Gen Zs and 27% of Millennials highlighted the need for more employee subsidies for sustainable choices. This shows a clear demand for actionable and tangible support from employers in the fight against climate change. A study by the World Economic Forum also indicates that young workers are actively seeking companies with robust sustainability programs.

3/ Power to Drive Change

Young workers believe they have the power to influence change within their organizations. Six in ten Gen Zs (61%) and Millennials (58%) feel they can drive changes in areas such as environmental practices, Diversity, Equity, and Inclusion (DEI), and wellness. This sense of agency is a critical factor in their career decisions. According to a report by Harvard Business Review, employees who feel empowered to effect change are more engaged and loyal.

The Business Impact of Climate Quitting

Companies that fail to address the sustainability concerns of their employees risk high turnover and difficulty attracting top talent.

The Future of Jobs Survey 2023 highlights that organizations identify skills gaps and the inability to attract talent as key barriers to transformation, with 53% of companies struggling to attract talent due to inadequate Environmental, Social, and Governance (ESG) commitments.

Many businesses may not even realize that employees quit for that reason until it's too late. A McKinsey report emphasizes that companies with strong social and climate commitments are more likely to attract and retain top talent.

Conclusion

The movement of climate quitting reflects a profound shift in workforce dynamics driven by the values of Gen Z and Millennials. As these generations continue to dominate the workforce, companies must adapt to their demands for sustainability, ethical practices, and positive finance. By doing so, businesses not only attract and retain top talent but also contribute positively to the global fight against climate change. The time to act is now—align your corporate values with those of your future leaders.

The team of Positive Finance is on a mission to transform finance by making every transaction support sustainability, fairness, and well-being, building a global economy where every investment, financial decision, and donations help People, protect the Planet, and create Prosperity for everyone. Contact us to learn more and discover how we can help you drive more sustainability for your company. Contact us

In our next blog, we’ll explore actionable strategies that businesses can implement to not only meet these new expectations but also thrive in retaining top talent. Stay tuned for practical solutions that will help you turn sustainability into a key asset for your company.