Young Adults Seek Ecological Balance

As per recent survey carried out by Nielson and Deloitte, results indicate that the Generation -Y of 21st century will pay more based on the criterion of sustainable and environmentally friendly production and development of such products. This will certainly induce the companies to adapt their production strategies and procedures to adhere to eco-friendly requirements of the new age customers.

Food industry and sustainability

Let’s talk about fishing industry where hampering practices of overfishing led to human rights violations and destroyed environmental balance. European Union introduced “Ecolabel” which is one of its kind of evaluation and labelling of environmental preferability of a product or service. Along with this ecolabeling which indicates that the product or service has been produced or rendered with minimal hazardous impact on the environment. Obviously, this label has benefit of increased scope of demand and higher prices.

Textile and ecological balance

Clothing industry struggles with quality raw material and if standards and transparency is introduced, then it would be eco-friendly development. More specifically, use of recyclable material or increased transparency would provide boost to a better governance.

As an example, we can see that many celebrities are discouraging the use of fur and leather as fashion statements. This could bring in the whole new dimension of humane treatment to the animals as well as stop the exploitation for raw material.

Greener automobile industry

Considering that electric cars will use and waste no fuel, young adults are expected to embrace them. Carpooling is also one of the eco-friendly ways to encourage and build up pollution free environment, increasing the sustainability in automobile industry. Carbon emissions, being the biggest culprit, most of the car companies are thinking of switching to clean energy source.

Supply chain and environmental balance

Supply chain again includes raw material as well as intermediary services, which are captive in the sense that these are not visible to the ultimate consumer. Take for instance, agriculturist who faces natural calamities like water scarcity or manmade impacts like excess pesticide usage.

This establishes the fact that sustainable development and acquisition within the supply chain is need of the hour. We can already see the changes being implemented in bigger companies like Nestle, however, there needs to be specific standards and provisions to which the suppliers as well as acquirers must adhere.

Other potential opportunities           

There are various other industries where the ecological sustainability is pushing the new doors to be opened for new age consumers. Take for e.g. health consciousness or habit of living a healthy lifestyle, is creating the need for

  • Comfortable sportswear or exercise wears
  • Stressing over organic food rather than hybrid or GM products
  • Switching to veganism or vegetarian lifestyle to stop barbaric practices of poultry and meat industry
  • Alternative medicinal therapy like homeopathy or Ayurveda as against allopathy or surgical treatments etc.

The list is unending and there are ever increasing opportunities for absorbing the demand of Generation Y, which is adapting the eco-friendly lifestyle, be it cars or be it food.

About Prof Janek Ratnatunga 1129 Articles
Professor Janek Ratnatunga is CEO of the Institute of Certified Management Accountants. He has held appointments at the University of Melbourne, Monash University and the Australian National University in Australia; and the Universities of Washington, Richmond and Rhode Island in the USA. Prior to his academic career he worked with KPMG.