Gen Z Perspectives on Sustainability and Business Practices
By students in the ESG & Sustainability Consulting program at the Colin Powell School for Civic and Global Leadership at The City College of New York.
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This article is presented by five undergraduate students from the Colin Powell School for Civic and Global Leadership, the home of the social sciences at The City College of New York (CUNY). The Colin Powell School is renowned for its focus on leadership development, as well as its success in enabling the social and economic upward mobility of its graduates.
The students’ research and reporting were conducted during a summer ESG & Sustainability Consulting program, delivered in partnership with Packaged Sustainable via the CapSource experiential learning platform.
Presented by Matthew Saunders, Alejandra Guan Zheng, Mahmood Ullah, Mehreen Hoque, ESG & Sustainability Consulting Fellowship
Introduction
Sustainability has become an increasingly important topic as businesses face growing pressure to reduce their environmental impact while meeting consumer expectations for ethical and socially responsible practices. Climate change, pollution, resource depletion, and social inequality have encouraged consumers to think more carefully about the products they purchase and the companies they choose to support. As a result, businesses are increasingly adopting Environmental, Social, and Governance (ESG) initiatives to demonstrate their commitment to sustainable business practices.
Among all generations, Generation Z has emerged as one of the most environmentally and socially conscious consumer groups. Many members of Gen Z consider a company’s values, environmental impact, and social responsibility before making purchasing decisions. However, traditional factors such as price, quality, convenience, and brand reputation continue to influence consumer behavior. This creates an important question for businesses: to what extent does sustainability actually affect purchasing decisions?
This research combines academic literature with survey data collected from Generation Z consumers and business owners to better understand the relationship between sustainability and consumer behavior. Specifically, this paper examines whether sustainable packaging influences purchasing decisions, how Gen Z views businesses’ environmental and social responsibilities, how company practices affect consumer support, and how sustainability shapes purchasing decisions overall.
Does Sustainable Packaging Influence Your Buying Decisions? Why or Why Not?
Sustainable packaging, made from recyclable, biodegradable, reusable, or renewable materials, has become a key strategy for companies looking to reduce their environmental impact and meet growing consumer demand for eco-conscious products. As concerns about climate change, plastic pollution, and waste management intensify, packaging has increasingly become a visible way for businesses to demonstrate corporate responsibility and strengthen their brand image among environmentally conscious consumers.
Generation Z (Gen Z) is widely characterized in marketing research as one of the most environmentally aware generations, frequently linked to support for sustainable products and ethical business practices. As a result, many companies have identified Gen Z as a key target market for sustainable packaging initiatives. However, positive attitudes toward sustainability do not always translate directly into purchasing behavior; factors such as price, product quality, convenience, brand reputation, and perceived value also shape consumer decisions. This suggests that sustainable packaging may encourage a purchase without being the primary driver behind it.
Prior research has examined the relationship between sustainable packaging and purchase intentions among Gen Z, but findings on the strength and consistency of this effect remain mixed, with some studies emphasizing sustainability’s influence and others pointing to its limited role relative to more traditional purchasing factors. Understanding where the truth lies matters for businesses to decide how much to invest in sustainable packaging while staying competitive. Building on this research, this section reviews existing literature and compares it with survey data collected for this project to assess whether and why sustainable packaging influences Gen Z’s purchasing decisions.
Sustainable packaging and its effect on Gen Z’s buying behavior was the focus of a study by Lisboa et al. (2022). The researchers used milk cartons with different package shapes to see how two things—perceived sustainability and perceived ergonomics—affected Gen Z consumers’ environmental attitudes and whether those attitudes translated into purchase intentions. The study centered on the “attitude-behavior gap,” the idea that people can care about the environment without that concern showing up in what they buy.
The results showed that packaging perceived as more sustainable led to a more positive environmental attitude, which then led to stronger purchase intentions. In other words, sustainability did not influence buying decisions directly it worked through attitude. Ergonomics told a different story. On its own, it had no significant effect on environmental attitudes, but it changed how much those attitudes mattered. When a package appeared highly ergonomic, meaning easy to use and convenient, it weakened the relationship between environmental attitudes and purchase intentions. Sustainable packaging, however, strengthened that relationship. Using cognitive dissonance theory, the researchers explained that convenience-focused packaging can conflict with a person’s environmental values, whereas sustainable packaging reinforces those values and encourages consistency between beliefs and purchasing behavior.
Taken together, these findings suggest that sustainable packaging can influence purchasing decisions, but its impact depends on other product characteristics, including convenience, price, and perceived value. Sustainable packaging works best when it complements these factors rather than replacing them. Survey data collected for this project provides additional insight into whether Gen Z consumers demonstrate similar purchasing behaviors.
Survey Findings
The findings from our survey continue to support previous research on sustainable packaging. When respondents were asked whether they had ever chosen one product over another because of its packaging, 29% answered Yes, 58.1% answered No, and 12.9% answered Maybe. These results suggest that while environmentally friendly packaging can influence purchasing decisions for some Generation Z consumers, it is not the primary factor for most respondents. Instead, many consumers appear to place greater importance on other considerations, such as product quality, price, or convenience. Overall, the survey supports the literature by showing that sustainable packaging can positively influence buying behavior, but its impact is often secondary to other purchasing factors.
To What Extent Does Gen Z Believe Businesses Have a Responsibility to Be Environmentally and Socially Responsible, and How Does This Influence Their Support for Those Businesses?
Most Gen Z consumers believe that businesses have a significant responsibility to protect the environment and contribute positively to society. Rather than viewing sustainability as an optional feature, many see it as a basic expectation for modern companies. They tend to value businesses that reduce waste, use sustainable materials, treat workers fairly, and are transparent about their environmental and social practices. These beliefs have a noticeable impact on how Gen Z interacts with brands. Many are more likely to purchase from, recommend, and remain loyal to companies whose values align with their own. At the same time, they are often willing to avoid or criticize businesses that engage in unethical practices or make misleading sustainability claims, a practice commonly referred to as greenwashing.
However, support is not driven by sustainability alone. Factors such as price, quality, and convenience continue to play an important role in purchasing decisions. While many Gen Z consumers want to make responsible choices, financial constraints can limit their ability to consistently purchase sustainable products. As a result, they tend to support businesses that make sustainability both genuine and affordable.
Evidence from the Deloitte 2024 Gen Z and Millennial Survey further supports these findings. According to Deloitte (2024), 65% of Gen Z believe businesses have both the opportunity and the responsibility to help protect the environment, making environmental protection the top societal issue where businesses can make a meaningful difference. Additionally, 64% of Gen Z respondents reported being willing to pay more for environmentally sustainable products or services, demonstrating that sustainability can influence purchasing behavior when consumers perceive a company’s efforts as authentic. The survey also found that 54% of Gen Z have encouraged their employers to take stronger action on climate change, while 20% have changed jobs because of environmental concerns and another 25% plan to do so in the future, showing that sustainability influences not only purchasing decisions but also career choices.
Survey Findings
The updated survey results show that Generation Z places a strong emphasis on corporate responsibility and transparency. When asked whether businesses have a responsibility to address environmental and social issues, 87.1% of respondents answered Yes, while 12.9% answered Maybe. In addition, 83.9% agreed that companies should be transparent about their environmental and social impact, with only 16.1% responding Not sure. These findings suggest that most respondents expect businesses to go beyond making profits by acting responsibly and communicating their sustainability efforts honestly. The survey reinforces the research by showing that transparency and accountability play an important role in earning the trust and support of Generation Z consumers.
How Do Companies’ Environmental and Social Practices Influence Gen Z’s Decisions to Purchase From, or Continue Supporting, That Company?
The fact that Gen Z cares about sustainability is correct. What needs to be recognized is that while awareness of sustainability issues exists in almost all Gen Z individuals, sustainability is frequently viewed as secondary to cost, quality, and convenience. Sustainability is relevant only once those basic demands are fulfilled. Prior to that, sustainability plays no role in making purchasing decisions. Thus, sustainability can be seen as a “tiebreaker” for Gen Z rather than a main motivator behind purchasing decisions.
That is supported by the data. First Insight, along with the Baker Retailing Center at Wharton, found that 62% of Gen Z respondents would like to shop from sustainable brands, and 73% would be willing to pay more for sustainable products, a percentage higher than any previously studied generation (First Insight & Baker Retailing Center, 2023). That shows Gen Z wants to spend more on sustainable products than any other age group surveyed. The huge gap between the two age groups means the difference between Gen Z and the next generation is very large. If any organization wishes to target its messages toward Gen Z, it will likely receive a strong response. As shown above, it is not just surveys that support this claim. The NYU Stern Center for Sustainable Business and Circana reported that products marketed as sustainable continued to outperform comparable non-sustainable products. Even with a reported 27.6% increase in costs associated with sustainable products, these products continued to sell better than competing alternatives (NYU Stern Center for Sustainable Business & Circana, 2022).
The critical point of differentiation is what consumers say they will do compared to what they actually do. Many consumers claim they are willing to pay more for sustainable products, and research shows that many follow through with those intentions. This is one of the few areas where consumer behavior closely reflects survey responses.
Survey Findings
The survey findings demonstrate that a company’s environmental and social practices can significantly influence long-term consumer support. When asked whether they had ever stopped supporting a brand because of its environmental or social practices, 74.2% of respondents answered Yes, while 25.8% answered No. These findings indicate that Generation Z consumers are willing to change their purchasing habits when a company’s actions conflict with their personal values. Rather than influencing only an initial purchase, responsible business practices appear to strengthen customer trust and encourage continued support over time. While sustainability can help businesses earn consumer trust, another factor is critical when looking at the effectiveness of sustainability marketing.
Another factor is critical when looking at the effectiveness of sustainability marketing.Sustainability marketing can attract Gen Z and cause them to make their first purchase. It provides little value in terms of causing subsequent purchases. After Gen Z makes their first purchase, they return to a store only if the product meets their expectations, prices remain competitive, and the service provided by the company remains consistent over time. Sustainability may open the door to potential customers, but it rarely keeps customers returning on its own. Companies must understand this because many organizations believe that simply marketing sustainability will automatically create long-term customer loyalty. Based on the research presented, this perception is incorrect.
This conclusion is supported by additional research. One study published in Sustainability found that Gen Z’s commitment to sustainable brands is primarily built on trust and transparency. Simply claiming that an organization promotes sustainability is not enough; businesses must demonstrate those commitments through consistent, evidence-based practices (Theocharis & Tsekouropoulos, 2025). Similarly, a study published in Advances in Consumer Research concluded that green marketing increases repeat purchasing only when companies communicate their sustainability efforts consistently and transparently. Organizations that fail to provide evidence supporting their environmental claims are less likely to build lasting relationships with consumers.
Greenwashing is directly related to this concept. When organizations make unsubstantiated or misleading claims about their sustainability initiatives, consumer trust quickly declines. Because social media allows Generation Z to rapidly share information and evaluate corporate behavior, businesses that exaggerate or falsely advertise their environmental efforts risk long-term damage to their credibility and reputation. As a result, companies are becoming increasingly aware that authentic sustainability practices are more valuable than misleading marketing claims.
How Does Sustainability Influence Gen Z’s Purchasing Decisions?
Sustainability has become an increasingly important factor in consumer behavior, particularly among Generation Z. As concerns about climate change, pollution, and corporate responsibility continue to grow, businesses are under increasing pressure to adopt sustainable practices that meet consumer expectations. Generation Z has grown up during a time when environmental and social issues are widely discussed through schools, social media, and other digital platforms. Because of this, many members of Gen Z consider a company’s environmental and social impact when making purchasing decisions. However, sustainability is not always the only factor consumers consider. Price, product quality, convenience, and brand reputation also influence buying behavior. Understanding how these factors interact is important for businesses seeking to attract and retain younger consumers.
Previous research has shown that sustainability can influence consumer purchasing decisions. Dabija, Bejan, and Dinu found that Generation Z places greater value on environmentally responsible companies than older generations, particularly when shopping online. However, they also concluded that sustainability is balanced with other factors such as affordability, product quality, and convenience (Dabija, Bejan, and Dinu). Similarly, Saeed et al. found that information about sustainability shared through social media positively affects consumers’ attitudes toward environmentally friendly products and increases their willingness to purchase them (Saeed et al.). These findings suggest that educating consumers about sustainability can positively influence purchasing behavior.
Additional studies further support this relationship. Research published in the Journal of Business Research found that environmental labels, sustainability certifications, and transparent business practices increase consumer trust and improve purchase intentions. Likewise, Suki and Suki concluded that environmental concern and peer influence significantly affect consumers’ willingness to purchase sustainable products, especially among younger generations who are heavily influenced by social media and their peers (Suki and Suki). Together, these studies demonstrate that sustainability is becoming an increasingly important consideration in consumer decision-making, even though it is not always the primary factor.
Survey Findings
The updated survey results show that sustainability remains an important consideration for Generation Z, although it is balanced with other purchasing priorities. When respondents were asked how important sustainability is when making purchasing decisions, 58.1% said it was somewhat important, 25.8% said it was very important, and 16.1% considered it not very important, while no respondents selected not important at all. These findings indicate that most respondents consider sustainability when making purchasing decisions, even if it is not always the deciding factor. Instead, sustainability is often evaluated alongside practical concerns such as product quality, affordability, and convenience. Together, the survey findings and the existing research suggest that businesses are most likely to attract Generation Z consumers when they combine sustainable practices with high-quality products and competitive prices.
Conclusion
This research examined how sustainability influences Generation Z’s purchasing decisions through four key research questions: whether sustainable packaging affects buying behavior, the extent to which Gen Z believes businesses have environmental and social responsibilities, how companies’ environmental and social practices influence consumer support, and how sustainability shapes purchasing decisions overall. The findings from both the literature and the survey responses demonstrate that sustainability has become an important consideration for Generation Z consumers. Many participants indicated that they value environmentally responsible businesses and are more likely to support companies whose actions align with their personal values.
However, the research also shows that sustainability is rarely the only factor influencing purchasing decisions. Product quality, price, convenience, and overall value continue to play significant roles in determining whether consumers choose to purchase a product or remain loyal to a brand. While sustainable packaging and responsible business practices can positively influence consumer perceptions, they are most effective when combined with high-quality products, competitive pricing, and transparent communication.
The survey findings are closely aligned with previous research, showing that most respondents consider sustainability at least somewhat important when making purchasing decisions and that many have stopped supporting brands because of poor environmental or social practices. These results reinforce the idea that sustainability can strengthen customer trust and encourage long-term support, but businesses must consistently demonstrate their commitment through authentic actions rather than relying solely on marketing claims. Overall, this research suggests that companies that successfully integrate sustainability into their products, operations, and corporate values while maintaining affordability and quality will be better positioned to earn the trust and loyalty of Generation Z consumers.
Works Cited
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Primary Research
Saunders, Matthew, Alejandra Guan Zheng, Mahmood Ullah, Mehreen Hoque, et al.
Gen Z Perspectives on Sustainability and Business Practices Survey. Google Forms, ESG &
Sustainability Consulting Fellowship, City College of New York, July 2026. Published survey.
Saunders, Matthew, Alejandra Guan Zheng, Mahmood Ullah, Mehreen Hoque, et al. Gen Z
Business Owners and Sustainability Survey. Google Forms, ESG & Sustainability ConsultingFellowship, City College of New York, July 2026. Published survey.
Guest Author