Gen Z is increasingly becoming the most influential customer group and workforce today. Current trends indicate that young people prioritize brands that are transparent and responsible toward the environment and society, rather than superficial advertising campaigns. Therefore, ESG is no longer just a “sustainable trend” but has become a mandatory standard for businesses to build a reputable image, attract young consumers, and retain high-quality talent.
The following article is prepared by DNP Viet Nam Law Firm to provide legal analysis and practical solutions to help businesses leverage ESG as a competitive advantage in branding and talent recruitment.
1. Why does ESG attract Generation Z consumers?
- ESG aligns with “purpose and well-being,” not just profit: Young workers today seek a balance between income, meaningful work, and mental health. ESG allows businesses to demonstrate social responsibility and shared values, helping employees feel that their work contributes not only to company revenue but also to positive social and environmental impact.
- Generation Z also prioritizes values and social responsibility: They look beyond price and product quality, considering environmental impact, social ethics, and corporate transparency. According to Deloitte’s 2025 “Gen Z and Millennials” survey, around 65% are willing to pay more for green or sustainable products and services. About 23% have researched a company’s environmental policies before accepting a job, showing that ESG has become a key trust indicator.
2. Why does ESG attract high-quality talent?
- High-quality talent increasingly seeks sustainable and transparent workplaces: Skilled candidates evaluate employers based on fairness, ethical standards, and long-term development opportunities. Clear ESG policies reassure them about a company’s stability and accountability.
- How ESG attracts and retains high-quality talent:
- Environmentally friendly products, services, and community initiatives: Green packaging, clean products, renewable energy, and community projects enhance public perception, encourage customer spending, and make employees proud of their organization.
- ESG-driven corporate culture: Fair policies on wages, benefits, and promotion opportunities improve employee satisfaction, increase productivity, and strengthen long-term commitment.
- Opportunities for professional development: Employees receive ESG training, participate in sustainability projects, develop new skills, and gain space for creativity to enhance their professional value.
3. ESG – A critical factor for long-term business success
- ESG is a long-term commitment: Practicing ESG helps businesses maintain credibility and trust from customers, partners, and talent. Integrating social responsibility, environmental stewardship, and transparent governance into business strategy helps reduce legal, social, and reputational risks.
- Creates a sustainable competitive advantage: Businesses with clear ESG strategies can easily adapt to market trends and shifts in consumer behavior. ESG attracts investors who prioritize sustainable growth and enhances brand value, creating differentiation in the eyes of customers and partners.
- Ensures long-term business growth: ESG is not just about branding; it directly influences business performance. Companies that effectively implement ESG can reduce long-term costs, optimize resources, improve operational efficiency, and maintain sustainable growth.
- Aligns with risk management strategy: ESG helps businesses identify and respond early to environmental, social, and governance-related risks. This is crucial for long-term resilience amid economic fluctuations, natural disasters, or policy changes.
- Attracts and retains talent: ESG not only builds brand value but also creates a transparent, fair, and sustainable working environment. High-quality talent seeks organizations with clear social commitments, long-term development opportunities, and a cohesive corporate culture.
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
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