Gen Z, a whirlwind of energy and ideals, is challenging the norms, and the world of investing is no exception. Growing up on a planet facing constant climate change and witnessing stark social inequalities, this generation is not content with the status quo. For them, money doesn’t speak louder; it needs to have a purpose.
While many hail Gen Z as the staunch defender of ESG (Environmental, Social and Governance), the reality is much deeper than simply adhering to a label. This generation is not just “embracing” ESG; it is shaping a new vision, more critical and demanding.
Forget the superficial talk. Gen Z seeks concrete, transparent and measurable actions. They are not fooled by green advertising campaigns or sustainability reports full of empty jargon.
A New Vision: Reinventing Investing with Purpose
Imagine a future where investing doesn’t just mean seeking profit, but also building a better world. For Gen Z, this future has already begun. They don’t see sustainability as an obstacle to financial returns, but rather as a catalyst for innovation and long-term value creation.
While many traditional investors rely on financial indicators as the sole parameter of success, Gen Z goes further. They analyze the social and environmental impact of companies, questioning their labor practices, treatment of diversity and inclusion, and stance on corruption.
The power of information at your fingertips:
Born in the digital age, Gen Z masters research tools and uses social media as platforms for activism and information sharing. They thoroughly scrutinize the history of companies, exposing cases of “ESG washing” – companies that try to appear socially responsible without genuine actions.
Clear Demands and a New Set of Values
Gen Z doesn’t just want to “do their part.” They want to lead the change and demand that companies do the same. Their investments are directed towards businesses that share their values and are committed to making a positive impact on the world.
But what really drives this new generation of investors?
- Authenticity above all: Gen Z seeks companies with real values and congruent actions. Transparency is key. They want to know where the products they consume come from, how they were produced and the social and environmental impact of each stage of the production chain. A practical example? A fashion company that uses organic materials, guarantees fair working conditions throughout its supply chain and cares about the conscious disposal of its garments will surely attract Gen Z’s attention.
- Tangible and measurable impact: Gen Z wants to see concrete results from their investment choices. They seek data that demonstrates the social and environmental impact of companies, such as reducing carbon emissions, implementing social inclusion programs or supporting local communities. Think of a technology company that develops solutions for efficient water use in agriculture. This company, while generating profit, contributes to a more sustainable future, a decisive factor in attracting Gen Z.
- Financial return tied to social good: Gen Z doesn’t give up financial return, but seeks investments that align profit with building a better future. They believe it is possible to generate wealth and make a positive impact on the world at the same time. An example of this is investment funds dedicated to purpose-driven companies that combine traditional financial analysis with rigorous ESG criteria, ensuring financial returns and positive social impact.
A New Era of Investing: The Impact of Gen Z
The rise of Gen Z as a driving force in the financial market is prompting a profound reassessment of how companies operate and relate to society and the environment. This generation is challenging traditional capitalism, demanding that companies take on responsibilities that go beyond the pursuit of profit. They demand transparency, action and tangible results.
The future belongs to companies that understand and adapt to this new reality. Gen Z is paving a new path where success is measured not only by profit, but also by the positive impact generated in the world. Are you ready to be part of this transformation?
Gen Z: Investing in the future, with purpose.
