Why young investors are done with empty, recycled mission statements
As an intern at Equities.com, the term “ESG” is a daily occurrence for me, so staying on top of the latest conversations surrounding ESG accountability feels like a must.
Young generations are starting to catch on to the performative kinds of ESG – the ones that talk a big game but don’t truly benefit initiatives related to sustainability, diversity, leadership practices, and the list goes on. Values-driven investing is no longer a niche target; it has become the expectation for rising investors.
Investors leading the change are no longer just looking for warm and fuzzy brand promises that make us feel like we’re advocating for change – we’re asking for real data, measurable progress and proof that companies mean what they say.
A net-zero-by-2050 pledge doesn’t sound promising until you tell us what you’re doing this quarter to accomplish that, just like how a trendy Earth Day campaign doesn’t cancel out a board with zero diversity.
So what’s changed?
Part of it is generational. Millennials and Gen Z are on track to become the richest generations, as we will inherit a massive chunk of global wealth, worth trillions of dollars. I don’t like to label ESG investing as “activist investing,” it’s simply smart investing.
This shift in investor priorities – aligning their money with their values – helps push efforts to standardize ESG reporting frameworks. Although the SEC rules surrounding ESG reporting remain in limbo, many public U.S. companies are considering the impact of ESG compliance on their attractiveness to younger investors.
Not just that, but while headlines focus on greenwashing scandals or political backlash, many firms are readjusting their ESG strategies to go beyond mere compliance, also aiming for credibility.
Transparency = Trust
Investors are watching closely, not just for ESG promises or buzzwords, but for proof that capital is being invested with purpose and long-term impact in mind. More and more companies are waking up to the fact that ESG isn’t about optics, but about building resilience.
I’m very curious to see how the upcoming generation of investors continues to respond and raise the bar for transparency, not just in the U.S., but on an international level. Regulators are getting louder. Shareholders are getting bolder.
And we, the next-gen investors, are making it very clear: Accountability is not optional.
See you next week,
Maddy Forlenza
Articles that fueled my writing:
- Beyond the ESG Label: From Metrics to Meaning
- The Evolving Landscape of ESG Reporting Regulation
- Gen Z Cares About Sustainability: Make Your Brand Actions Tangible