Environmental, Social and Governance (ESG) factors and Brand Perception – A Generation Z Perspective

Abstract

The Environmental, Social, and Governance (ESG) aspects of a corporation have garnered substantial attention from stakeholders in recent times. The COVID-19 pandemic caused investors and decision-makers to reevaluate their investment methods, which led to the rise in popularity of ESG investing. Demand for ESG disclosures, rankings, and ratings has increased due to the growing interest from stakeholders and Government policy. , Generation Z (Gen Z) is a crucial group for marketers due to their substantial purchasing power and distinctive traits. Gen Z, who make up 40% of the world's consumer population, are the most racially and ethnically diversified generation. To market to them would require understanding their values and preferences. This paper looks impact ESG factors have on the Brand Perception of Gen Z. The study found that Gen Z responds differently to each ESG factor with Environment being the most important. Furthermore, there was a difference in ESG and brand perception with respect to gender.