The energy industry is at a turning point. This year has seen widespread concerns around shortages fuelled by the Russian war in Ukraine, dramatically rising energy prices, and amplified fears over the impact of the climate crisis as the UK experienced record-breaking high temperatures.

Sustainability has become an issue of high importance for many; more prominently the case for the younger generations, such as Gen-Z, who are emerging as the new workforce. A recent survey by Bupa found that 64% of 18–22-year-olds found it important for their employers to act on environmental issues.

However, many believe that significant elements of the energy industry are doing little to address climate change. This has led to a negative reputation surrounding the sector, which means it is proving hard to attract the purpose-driven emerging workforce.

Despite this, the industry would do well to consider bringing in sustainability-focused young talent. They have the determination and agenda to help drive change in the industry, and employing fresh talent will be necessary for companies to stay relevant and innovative.

Time for change in the industry  
The UK government has set a target for the country to reach net zero emissions by 2050, prompting many companies to match or set even more ambitious targets. As part of this, the energy sector has begun embracing alternative and renewable energy sources. Companies will have to invest hugely in these replacements, as well as in the infrastructure and technology needed to cut carbon emissions.

However, traditional firms face difficulties enacting enough sustainable change, bogged down by a lack of diversity and a company culture stuck in its old ways. Although many corporations have committed to the same goal as the UK government’s target, if they continue the pace of emissions reduction which they achieved between 2010 and 2019, an Accenture study in 2021 found that only 19% are likely to meet the 2050 target.

At the same time, if the energy industry brought in sufficient numbers, fresh, sustainably oriented Gen-Z talent could drive the change needed for companies to hit targets for a greener future.

A generation of purpose
Concerns over the climate crisis resonate the most with younger generations, such as Gen-Z, who are more likely to promote action for sustainability measures. A study of more than 27,000 participants showed six in 10 of under-30s view climate change as a priority after the post-pandemic recovery rather than getting the economy to bounce back.

The Gen-Z population not only hold these views in their personal lives but are more likely than their predecessors to want their workplaces to hold the same values and morals as they do. Reports show that Gen-Z talent is much more likely to value purpose as a key component in their work, and with that comes demands from them for companies to be doing their part in helping to mitigate the climate crisis.

Therefore, Gen-Z talent is reluctant to become involved with industries and companies with ‘traditional’ reputations. Instead, they are much more likely to join companies or start-ups that show real action in tackling the pressing issues plaguing our time, such as social injustices and the climate crisis.

However, traditional energy companies continue to dominate, and many have changed or are looking to change to more sustainable measures. They should promote this more openly and make internal changes to attract new talent, who will drive sustainable changes in the industry.

Forging a future together
Whilst there is enormous value in innovative, fresh environmental start-ups working to tackle the climate crisis, traditional energy companies’ resources are unparalleled. By employing the capabilities of these companies, the sector will reach significantly higher levels of investment in renewable energy.

A 2020 report showed that 85% of those under 30 are interested in sharing their ideas and experiences with companies to help develop better solutions to problems such as the climate crisis. By investing in attracting Gen-Z talent, traditional energy companies can combine their resources with the passion and purpose of their newer workforce to work towards a more sustainable future.

Contrary to any belief that the energy sector will lose profits if it turns towards more sustainable measures, many traditional energy companies can also see positive economic returns. Studies show that companies that combine high levels of innovation with ‘sustainability and trust’ measures outperform their industry peers, with 3.1% higher operating profits and greater shareholder returns.

It is clear that energy companies are at a critical moment – they need to reform their sustainability measures as the climate crisis intensifies to satisfy both the government and the public. Together with a Gen-Z workforce, they can forge a future where sustainability comes first, and the UK’s net zero goal could be achieved.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.