Climate Quitting: Companies without a serious climate strategy risk losing young talent

More and more people have high expectations of their employers when it comes to climate and environmental protection. If these expectations are not met, young, highly qualified employees, in particular, often change jobs.

An increasing number of individuals are striving to live in a climate- and environmentally conscious way, shaping their lifestyles accordingly. While personal efforts have traditionally focused on reducing one’s own “ecological footprint” – such as through a vegan diet or eco-friendly mobility – awareness is now extending to the workplace. A growing group of people no longer wants to be part of the problem and refuses to contribute their labor to companies that engage in environmentally harmful practices.

Climate Quitting

The facts seem clear: Corporate responsibility in environmental and sustainability matters is a key factor in job selection. According to a 2022 KPMG survey of 5,700 people in the US and UK, 30% of job seekers consider a company’s sustainability certifications before applying – among 20- to 24-year-olds, this figure rises to 45%. Approximately two-thirds (64%) of surveyed office workers refuse to work in certain industries for ethical reasons; half of them would reconsider if these industries made a convincing and clear commitment to sustainability.

Similar findings emerge from the “2023 Net Positive Employee Barometer,” commissioned by former Unilever CEO Paul Polman, which surveyed 4,000 people in the US and UK. More than two-thirds of respondents want to work for a company that has a positive impact on the world, and three-quarters demand that businesses take social and environmental responsibility seriously. Many employees recognize that their employers are trying to be “less harmful,” but believe that this is not enough.

Younger employees, in particular, are not easily placated with empty promises. A 2023 Deloitte study of 22,000 people aged 20 to early 40s (Generation Z and Millennials) found that climate protection is one of the top concerns for this younger demographic. Around half of them try to push their employers toward greater sustainability but often feel powerless and overwhelmed. More than 40% have already left a job due to insufficient climate action or plan to do so soon. In controversial industries, where highly skilled professionals can choose their employers, the “Climate Quitting” phenomenon poses a serious threat to companies that (still) place too little emphasis on climate and environmental issues.

Implications for Companies

The 2023 Net Positive Employee Barometer concludes that many companies are currently “sleeping through” the problem of Climate Quitting. To counter this trend, businesses need to increase their commitment to environmental protection and social justice, grant employees more influence in corporate social responsibility matters, and communicate more about sustainability.

Paul Polman sums it up succinctly: For employees – a company’s most valuable resource – values and the societal impact of their work matter more than many managers realize. This is especially true for younger generations, for whom social and environmental sustainability are core values. To attract young talent, managers should consider how to take genuine steps toward a more sustainable future.

Links to the studies:

2023 Net Positive Employee Barometer: https://www.paulpolman.com/wp-content/uploads/2023/02/MC_Paul-Polman_Net-Positive-Employee-Barometer_Final_web.pdf

Deloitte (2023): https://www.deloitte.com/global/en/issues/work/content/genzmillennialsurvey.html

KPMG (2022): https://kpmg.com/uk/en/home/media/press-releases/2023/01/climate-quitting-younger-workers-voting-esg.html