The business world is facing a major challenge with climate change, and young leaders are expressing disillusionment with market-based solutions. A recent survey conducted by the University of St. Gallen revealed that many young leaders under 35 believe that a sustainable transformation of the economy requires a different system. This is in contrast to the views of experienced managers from large companies who emphasize the importance of technological advancements in addressing climate change.
The survey involved 650 young leaders and 250 experienced managers, and the results showed that there is a lack of optimism and confidence among the younger generation when it comes to market-based solutions for climate action. Younger leaders are less convinced of technology’s role in solving this problem, arguing that companies should prioritize ecological and social goals over shareholder interests. However, some experts believe that profit motive and shareholder value can contribute to societal benefits through a company’s operations if properly managed.
The survey also raised questions about the effectiveness of regulatory tools such as emissions trading in promoting green initiatives. While both young and established managers agree that efficiency measures in businesses can have environmental benefits by reducing resource consumption and emissions, some areas lack proper price signals to drive sustainable practices. The lukewarm response to market-based solutions for climate action raises concerns about the future of capitalism and sustainability, as well as whether universities like the University of St. Gallen are adequately preparing future leaders for sustainable business practices.
The upcoming St. Gallen Symposium is expected to generate important discussions on these issues, including how older leaders are passing on principles related to sustainability to younger generations, whether universities are teaching the right principles, and whether market-based solutions are effective in promoting climate action.
In conclusion, it is crucial for businesses and educational institutions to reflect on their values and priorities when it comes to sustainability, particularly when it comes to market-based solutions for climate action. Only by working together can we hope to create a more sustainable future for ourselves and future generations.
