Manpower® | Experis® | Talent Solutions Global Insights The Greening World of Work #1 GREEN BUSINESS TRANSFORMATION WILL BE TOP JOB CREATOR IN NEXT FIVE YEARS 70% GLOBALLY, OF EMPLOYERS ARE CURRENTLY OR ACTIVELY PLANNING TO RECRUIT FOR GREEN JOBS & SKILLS 94% OF EMPLOYERS SAY THEY DON’T HAVE THE TALENT THEY NEED TO ACHIEVE THEIR ESG GOALS 1 INTRODUCTION CONCLUSION Contents TREND ONE Talking About My Green Generation TREND FOUR TREND TWO TREND THREE Green Giant Government Action Getting Serious about ESG Green Tech Adoption Accelerating TREND FIVE The New Collar of Work is Green 2 INTRODUCTION TREND ONE TREND TWO TREND THREE TREND FOUR TREND FIVE CONCLUSION The global transition to a more sustainable economy is accelerating despite years of recent disruption and uncertainty. Sustainability and corporate social responsibility are increasingly important to consumers around the world, particularly Gen Z. In just a few years, adoption of Environmental, Social & Governance (ESG) goals has evolved from a differentiator for a small group of large companies to a more widely expected standard of global business best practices. The foundation of this global green business transformation is a skilled and innovative workforce. This ManpowerGroup Global Insights report examines the top trends business leaders should consider as they consider the future of work and the green economy. • What are the key drivers of the global green business transformation? • What can business leaders do to accelerate their ESG performance and competitive advantage in the market? • How can businesses future-proof their operations by embracing the transition to a green economy? • How will these trends impact workforce planning and workers? 3 INTRODUCTION TREND ONE TREND TWO TREND THREE TREND FOUR TREND FIVE CONCLUSION Talking About My Green Generation The green transition is gaining momentum with consumers, and global business leaders are paying attention. Contrary to popular opinion, this green preference is not just limited to younger consumers. Across all generations, there is a growing preference and expectation for more sustainable products. In addition, recent data shows that a majority of consumers are willing to pay a premium for sustainability. Sustainable brand leadership is also shown to have a positive impact on employee recruiting and retention efforts, creating further opportunities for competitive differentiation. • More Important to Consumers Across Generations: More than half of global consumers (51%) across age groups say sustainability is more important to them than it was 12 months ago. In addition, nearly (49%) said they paid a premium for a more sustainable product in the last 12 months.1 • Gen Z Leading the Way: Although there is a preference for more sustainable products among all consumers, it is stronger for Gen Z. In a recent survey of U.S. consumers, 75% of Gen Z respondents said sustainability was more important than brand when making a purchasing decision.2 • The Numbers Don’t Lie: During a five-year period, average sales of products marketed with sustainability claims grew by 28%. In the same period, sales of comparable products with no sustainability claims grew by only 20%.3 • A Talent Advantage Across Age Groups: A global majority of candidates of all ages are more willing to apply for (67%) and accept (68%) jobs with organizations they perceive as environmentally sustainable.1 49% NEARLY HALF OF GLOBAL CONSUMERS HAVE PAID MORE FOR A SUSTAINABLE PRODUCT IN THE PAST YEAR 1 Workforce Implications: • Underscores importance of roles across functions related to green products and solutions. • Sustainability leadership can be a differentiator in recruitment marketing. • Internal communication of sustainability leadership is a retention booster across generations and particularly with Gen Z workers. • Remaining silent on sustainability and the green transition is no longer a viable option. 1. IBM Institute for Business Value 2. Baker Retailing Center, Wharton - University of Pennsylvania 3. McKinsey 4 INTRODUCTION TREND ONE TREND TWO TREND THREE TREND FOUR TREND FIVE CONCLUSION Green Giant Government Action As scientific warnings about the adverse impacts of climate change become more widespread, governments and regulators around the world are taking action to reduce carbon emissions. Although this is creating the momentum for increasingly stringent environmental regulat