China's youth expected to be new driving force for sustainable growth

As we see a surging demand and a favorable business environment, industry experts said that China's young-generation consumers are expected to become a new driving force of the development of ESG (environmental, social and governance), further promoting the sustainable growth in the field.

They said that in the recent two to three years, ESG has transformed from not only an operation goal for business entities, but a trendy lifestyle, or mindset, among consumers.

Consumers bring their own mugs or bottles when buying coffee. LEED cafes and restaurants are becoming increasingly popular among the youth, as they pay special attention to the LEED marks on the store's window before entering them.

The LEED rating system, devised by the United States Green Building Council, assesses the degree to which a building is environmentally friendly, utilizes energy-efficient equipment, and actively adopts renewable energies or other technologies that reduce the negative impacts of buildings on the environment.

"For many young people, ESG is no longer an unattainable concept but a practical and achievable one. More and more young people are choosing to purchase, use, and promote products with environmental elements and are adopting green, low-carbon lifestyles. This trend is particularly evident in sectors such as food and beverages, household goods, and fashion," said Wang Jing, vice-president of USGBC North Asia.

"I have stuck to the habit of bringing my coffee mug ever since 2015. As a coffee lover, I bought my first coffee container. It is very convenient …… During my lunch break, I go to the coffee shop near the company, order a cup of coffee, and take it away with my own mug. I have kept the habit until now," said Mo Cha, a 30-year-old white collar in Shanghai.

"Leading a low-carbon, or environmentally-friendly life is kind of cool," Mo added.

Wang, as an observer in ESG for over a decade, said that people began to realize the importance of ESG, and they are willing to learn more about the field. The demand for ESG-related talent is strong and continues to grow. However, the supply of matching talent is somewhat insufficient as ESG only become mainstream in the past few years.

In the past years, the demand for experienced and skilled professionals within ESG has reached an all-time high, no matter in China, the United States or European countries. The demand is vastly exceeding the existing number of experienced and qualified professionals available in the booming field, said Wang Bing, committee member and deputy secretary general of the Energy Industry Brand Research and Development Branch of China Energy Research Society. 

Witnessing the skyrocketing demand for ESG education in the country, global consultancies, including KPMG, Deloitte, EY, and many other financial institutions, are now accelerating their ESG education efforts.

"The ESG education sector is expected to gain more accurate policy support, draw in more talents to get involved, and generate greater demand, forming a virtuous circle, Wang from China Energy Research Society added.

zhengyiran@chinadaily.com.cn