10 hours ago
Gen Z is seeing it everywhere. Companies talk about sustainability. Labels promise greener products. Ads mention carbon footprints, recycling, and climate goals.
But talk is cheap. People, especially younger consumers, are paying closer attention to what companies actually do. And many of them are not convinced.
A large international study shows that Generation Z is carefully watching corporate behavior on environmental issues.
They notice when companies follow through. They also notice when the message does not match reality.
Gen Z is paying attention
Companies once treated sustainability as a side note in corporate communication. That has changed.
Environmental concerns, global campaigns like the UN’s 2030 Agenda, new regulations, and a surge of climate-aware consumers pushed sustainability to the center of corporate reputation.
Young people are a big reason for that shift. Members of Generation Z, those born between 1995 and 2009, grew up hearing about climate change.
This generation has watched wildfires, extreme weather, and global climate debates unfold throughout their lives. For many of them, environmental responsibility is not a bonus. It is a baseline expectation.
Gen Z does not simply buy products. They judge the companies behind them.
The research behind the findings
The study that brought these patterns into focus analyzed the opinions of 8,980 people in six countries. Participants came from Spain, Italy, Portugal, Chile, Colombia, and Mexico.
The research team was led by Elisenda Estanyol of the Universitat Oberta de Catalunya. Scholars from Pompeu Fabra University and the MERCO Corporate Reputation Business Monitor also contributed to the work.
Their findings reveal a generation that watches corporate behavior closely and forms opinions quickly.
“The most striking thing is that Gen Z isn’t indifferent or complacent: they actively observe, assess and judge the companies’ behaviour in terms of the environment,” said Estanyol.
“They don’t just consume; they construct a brand’s reputation, based on what it does or doesn’t do for the environment.”
“The study shows a generation that is especially sensitive to greenwashing and ready to hold companies accountable when they say one thing and do another.”
Different countries, different expectations
The research also showed that geography matters. Europeans tend to judge companies more harshly when it comes to environmental commitments.
Spain stood out as the most demanding country among those studied. According to Estanyol, this is due to several factors.
“First, there is greater social and media awareness of the climate crisis. Second, there is a tradition of distrust towards institutions and large corporations, which leads young people to adopt a more sceptical and demanding perspective.”
“Gen Z in Spain does not take environmental commitment for granted: it demands evidence, transparency and tangible results.”
Sustainability is now expected
In Latin America, the picture looked different. Mexico and Colombia recorded the most positive ratings for companies’ environmental efforts. That does not necessarily mean businesses there are greener.
“In countries where environmental regulation is less strict or there is less institutional pressure, any visible effort is perceived as a significant advance,” said Estanyol.
“In Europe there is an increasingly demanding regulatory framework, which raises people’s expectations.”
Estanyol noted that sustainability is no longer a bonus. “It has become a minimum expected standard, which explains a more critical and less forgiving public attitude to corporate behavior.”
Reputation is not equal across industries
Another pattern stood out in the data. Some industries start with a reputation problem.
Companies tied to tobacco, gambling, fossil fuels, or sugary drinks often receive lower ratings when people judge environmental responsibility.
These sectors carry social stigma, and that affects how consumers interpret their sustainability messages.
That does not mean improvement is impossible. It does mean companies in those industries face a tougher audience from the start.
Gender also plays a role. Across every country and generation in the study, women tended to rate environmental commitment and corporate reputation higher than men did.
The difference appeared strongly among Generation X and Millennials, but it remained visible in Generation Z as well.
Demanding but fair
Generation Z has a reputation for skepticism toward corporations. The data suggests a more balanced picture.
Young consumers are demanding. They expect transparency and measurable action. But they also recognize genuine effort when they see it.
When companies provide clear evidence of environmental progress, Gen Z responds positively. That response reflects careful judgment rather than automatic distrust.
“The message for companies is clear: Gen Z is watching and will not forgive inconsistency,” said Estanyol.
“Companies that incorporate sustainability in a real and verifiable way can gain reputation and legitimacy; those that merely feign commitment risk losing credibility.”
Sustainability expectations of Gen Z
Environmental communication now plays a major role in how people judge brands. But the study suggests that messaging alone does not work.
Companies need clear data that shows progress. Vague claims or marketing slogans raise suspicion.
Messages also need to match different audiences. Expectations about sustainability vary between countries and social groups. Communication that works in one region may fall flat in another.
Gen Z also expects interaction. Digital platforms give young consumers space to question companies, challenge claims, and demand explanations.
Businesses that only broadcast messages without listening risk losing credibility. Above all, actions must match words.
“The implication for companies is clear: neutrality is no longer an option,” said Estanyol. “For Gen Z, doing things right has a reputational reward, but doing them badly has an immediate cost.”
“Brands face a logic of reward or punishment in which coherence in terms of the environment directly influences trust, reputation and social legitimacy. It’s not enough to talk about sustainability: it must be demonstrated constantly.”
The full study was published in the journal Young Consumers Insight and Ideas for Responsible Marketers.
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