Shifting perspectives: Sustainable change by generation

15 min readOct 13, 2023

This article is an excerpt from our research publication SJ3: The pathway to regenerative business. A Japanese version is available on Note.

Summary

Younger generations struggle with work and career wellbeing, lacking a sense of growth and inclusion.
Generation Z shows highest engagement in workplace sustainability initiatives, but there is still opportunity to raise awareness.
Companies can empower individuals by promoting sustainable products and services, enhancing wellbeing, and increasing motivation.

Why generations?

Shifts in the mindsets of younger employees? Traditional ways of working failing to connect? Management and guidance approaches creating unexpected tension?

These are all challenges voiced by leaders around working with Generation Z, who entered the workforce in recent years. A new wave of digitisation and remote work driven by the pandemic, as well as a decrease in face-to-face interactions, has brought to light differences in values, perspectives, and knowledge between generations.

Throughout history, generation gaps have been a recurring phenomenon. Generation X, the group that started categorising generations alphabetically, is a label drawn from the Greek term ‘Xei’ — a representation of the unknown.¹ ²

Discussions on generation gaps involve two perspectives: one considers it as a ‘matter of history’, because times have changed, while the other sees it as a ‘matter of life course’, the rebellion of young people to the existing social order, and a process that the older generation has also experienced.³

Some critics argue that the practice of categorising and analysing individuals based on generations is merely a labelling technique devised by business for research and market activation.⁴

The Pew Research Center have conducted surveys on generations for many years, and state that the concept of generations can be useful in understanding how society changes over time.⁵

The Japanese government has recently initiated job support for individuals in a group referred to as the ‘employment ice age generation’. This reflects a policy belief that events occurring within a particular time frame can influence opportunities for people living in that era.

When considering generations, it’s crucial to avoid attributing all societal shifts exclusively to these factors. It’s essential to acknowledge that this approach can perpetuate stereotypes and oversimplifications, failing to recognise individual growth over time. Instead, greater emphasis should be placed on personal experiences, appreciating uniqueness beyond generational boundaries.⁵

With these considerations in mind, we view generations as just one lens to support our understanding and analysis. We use the perspective of generations as a tool to consider transformation in Japanese society and culture, looking for trends and drivers towards sustainable transitions, as well as barriers to progress.

Understanding different generations

Generational classifications find their roots in Western culture, while Japan too has distinct terms for representing different generations.

In our research and analysis, we employ global generational classifications to support cross-cultural comparisons. These classifications include Baby Boomers, Generation X, Millennials (Generation Y), and Generation Z.

This is how we’ve defined Western and Japanese generations in 2023, along with a brief overview of each:

Baby Boomers (Born 1953–1964)

Includes: First Baby Boomers (Born 1947–1949), ‘Danso’ Generation (Born 1953–1963), ‘Shinjinrui’ Generation (Born in 1960s).
Age: 59–69* (Study includes participants below the age of 69).
Population: 18.23 million.
37% are employed full-time, 34% in other forms of employment, and 16% are not employed/retired.
Grew up in the Japanese post-war economic growth period and experienced the bubble economy and its subsequent collapse as working adults.

Generation X (Born 1965–1980)

Includes: ‘Shinjinrui’ Generation (Born in 1960s), Bubble Generation (Born in 1965−69), Second Baby Boomers (Born in 1971–74), Employment Ice Age Generation (Born in 1971–1984).
Age: 43−58.
Population: 28.50 million.
56% are employed full-time, 19% are employed part-time or contract/temporary workers.
Some experienced the employment ice age and can be included in Japan’s lost generation.

Millennials / Generation Y (Born 1981–1996)

Includes: Employment Ice Age Generation (Born 1971–1984), ‘Yutori’ Generation (Born in 1987–2004).
Age: 27−42.
Population: 22.11 million.
56% are employed full-time, and 21% are part-time or contract/temporary workers.
Grew up alongside digital technology development. Although the ‘employment ice age’ has come to an end, many experienced economic downturns, such as the aftermath of the 2007–2008 financial crisis.

Generation Z (Born 1997–2007)

Age: 15–26* (Study includes individuals over the age of 15).
Population: 13.08 million
34% are students, 32% are full-time workers, and 17% are part-time or contract/temporary workers.
Grew up surrounded by digital technology such as smartphones and social media. Experienced the Great East Japan Earthquake during their childhood years and experienced the COVID-19 pandemic as students or new members of the workforce.

Sustainability consciousness across generations

Sustainability consciousness

When comparing levels of sustainability consciousness across generations, it’s evident that Baby Boomers in Japan show the highest degree of consciousness, followed by Generation X and Generation Z. Millennials tend to have the lowest levels of consciousness.

Looking at the issues raised by each generation, ‘climate change’ and ‘jobs that pay enough for a decent life’ are highlighted by all, but there are differences in the priority given to each.

Nearly 60% of Boomers (with over 40% considering the need to reduce the impact on the natural environment), and 50% of Generation X perceive climate change as a threat. However, this decreases to around 30% for Generations Y and Z.

These results in Japan contrast with the general notion that younger generations are more conscious of social and environmental impact, which is often observed in Western countries.⁶

Climate change awareness among Japanese people across generations is slowly rising, although it’s still relatively low in comparison to Generations Y and Z globally.⁷

Sustainable action

When it comes to actions that have a positive impact on society and the environment, we see a similar pattern: a greater percentage of older generations in Japan engage in these behaviours.

This trend holds true across generations, however it is worth noting that the intention to engage with sustainable practices is highest among Generation Z, indicating the motivation of younger generations is substantial:

Gender equality enjoys the highest level of support among the younger generations, particularly Generation Y and Z.
Generation X, Y, and Z are actively engaged in taking actions to minimise their environmental impact in daily life. They prioritise energy conservation, utilising renewable energy sources, and reducing plastic consumption. Generation X shows considerable enthusiasm for electric vehicles.
The Baby Boomer generation have already taken significant steps and are actively transitioning towards supporting more sustainable companies and brands.

Factors for sustainable decision making

Barriers to sustainable decisions

What’s preventing younger people in Japan from being aware of social and environmental issues and taking action?

One of the underlying factors is economic uncertainty, which can be inferred from the higher proportion of younger people prioritising ‘living wages’ over ‘climate change’.

When examining the economic and social issues that concern them, it’s clear that Generation Y and Z prioritise matters directly related to their household finances, such as higher taxes and household expenses.

This is a global challenge, with Deloitte finding that Generation Y and Z strive to prioritise sustainable impact, but struggle due to their finances.⁸

Questions around barriers to sustainability showed that ‘economic constraints’ are the top concern for over half of younger people in Japan, closely followed by ‘limited time’ and ‘lack of knowledge’.

This suggests that having time and financial resources, as well as access to networks and information, plays a vital role in understanding and taking action on social and environmental issues. It should be noted that economic constraints are a common barrier across all generations and are not limited to only the younger generations.

Wellbeing and sustainability consciousness

When comparing wellbeing across generations, we found that Baby Boomers, who exhibit the highest levels of sustainability consciousness, also have the highest levels of wellbeing. Millennials, with low sustainability consciousness, tend to experience lower levels of wellbeing. Generation Z have a higher willingness to take sustainable action and high levels of wellbeing, just behind Boomers.

These findings suggest that wellbeing serves as an essential foundation for individuals to be conscious of sustainability and take meaningful action.

It’s notable that Generation X has the second highest sustainability consciousness, but comparatively low levels of wellbeing.

When considering wellbeing, both financial wellbeing and career wellbeing are consistently low across all generations. As explored earlier, economic constraints pose significant challenges to sustainable action, not only in Japan but also globally. Additionally, the level of wellbeing associated with work and career in Japan is relatively low compared to other countries.⁹

Wellbeing in the workplace

Across all generations, the areas of ‘agency’ and ‘engagement’, as well as ‘competence’ and ‘development’, are regularly cited as problems in the workplace.

These findings are consistent with international studies that have shown Japan’s low levels of employee engagement and lack of professional growth. Such factors directly contribute to diminished overall wellbeing in the workplace and career.⁹ ¹⁰

Looking at this by generation, ‘agency’ and ‘engagement’ are lowest among Generation Z, while gradually increasing with age. A deeper analysis shows that younger people have less inclination to proactively consider ways to improve their workplace, generate ideas, and collaborate with colleagues on improvements. This group are missing the agency to share their ideas and insights, leaving them hesitant to contribute.

When it comes to learning and personal growth, Generation Z place this highest in their priorities, with this shrinking as people age, although there is a slight bump with Baby Boomers. This shows a demand for support in mid-career re-skilling, continuous learning, and embracing new challenges.

There are a low percentage of individuals across all generations who are ‘pursuing their desired career path’. Generation X, who encountered the ‘employment ice age’, have the lowest level of satisfaction in this space.

Addressing these challenges required shared effort between businesses and individuals, striking a balance between company direction, roles and responsibilities, and employee objectives (a notion explored further in Tomoe Ueyama’s interview).

Company involvement in sustainability

When it comes to involvement in sustainability efforts within organisations, over 40% of participants aren’t aware of their workplace’s actions, highlighting a lack of effective storytelling and communications.

When looking at specific initiatives, ‘employee education and training’ has the highest awareness rate across all generations exceeding 20%, followed by ‘product quality’ and ‘safety management’ exceeding 10%.

‘Waste reduction’ has greater awareness by Baby Boomers and Generation X, while ‘gender equality’ is important for Millennials and Generation Z — reflecting the differences in generational interests and concerns.

The proportion of individuals who take a proactive role and promote sustainability is highest among Generation Z, which stands in contrast to their overall agency and engagement. When it comes to awareness of company sustainability initiatives, Generation Z stands out, displaying the highest levels of awareness across the board.

While younger generations may have a greater number of individuals who are unsure about their workplace’s sustainability initiatives, they have a lower proportion of individuals who are ‘aware but not involved’. The percentage of respondents who stated that ‘workplace sustainability activities motivate them’ is also highest among Generation Z at 28%, compared to 22% for Millennials, 22% for Generation X, and 26% for Baby Boomers.

This suggests that if younger employees become aware of sustainability activities in the workplace, they are likely to proactively contribute and get involved.

There is no significant difference in the percentage of individuals categorised as ‘aware and involved’ across generations. However, a larger proportion of older employees fall into the category of being ‘aware but not involved’.

This means it may be best to consider different approaches to engage employees who show lower levels of engagement, particularly among the older age group.

How companies can enable sustainable action

As sustainability is increasingly integrated into company strategies and workplaces across Japan — how can these businesses support their people, across generations, to lead more sustainable lives and careers?

One strategy is to encourage the adoption of practical behaviours, such as recycling and reducing plastic usage, already accepted and practised by a broad range of people in Japan.

Providing support for home-based changes, such as: energy conservation, transitioning to renewable energy, and using electric vehicles, would tap into emerging opportunities a significant proportion of people ‘would like to do in future’. It would also have a far greater impact on reducing carbon emissions.

Younger people prioritise social issues like gender equality, and are concerned about wellbeing related to their work and careers, which acts as a barrier to sustainable choices.

Establishing an inclusive environment that empowers people to shape their work-life balance and embraces diversity in gender, sexuality, ethnicity, nationality, and age is critical. As is fostering meaningful work, personal growth, and fulfilling career prospects.

For many Japanese companies, aligning the organisation and hierarchy with emerging employee career pathways and expectations influenced by global trends will be a challenge.

To drive rapid sustainability transformations in organisations, it’s imperative for companies to effectively communicate the value of these initiatives, ensuring relevance and raising employee awareness.

Approaches by generations

Baby Boomers (born 1953–1964)

Sustainability consciousness: Compared to previous generations, this generation has a heightened level of awareness towards sustainability. A significant proportion of individuals are deeply concerned about environmental impact, with approximately 60% expressing an imminent sense of crisis in relation to climate change. Over 40% firmly believe that concerted efforts should be made to mitigate the impact on the natural world. Many of them already practise everyday habits like recycling, and there is a high likelihood that they will shift towards more sustainable companies in future. Their understanding of sustainability may be focused on mainly environmental issues. Their wellbeing is good compared to younger generations, although there is some dissatisfaction with physical health, career, learning, and growth.
Engagement at work: In terms of sustainability at their workplaces, there is a high proportion of individuals who are engaged compared to other generations, but also a significant proportion of individuals who are aware but not involved, indicating a possible polarisation based on positions and job responsibilities. They have the lowest awareness among all generations of sustainable products and services, ethical business practices, and partnerships with sustainable companies, as well as management of transparent supply chains.
Pathways to empowerment: When considering Japan’s population, including those aged 70 and above who were not included in this study, this cohort represents a significantly large group. Encouraging them to buy from sustainable companies would have a major impact. However, due to the relatively limited awareness of sustainability practices in the social and governance domains, it remains crucial to cultivate a better understanding of these themes within organisations.
Drivers: Environmental issues, climate change, retirement savings, pension, health, intellectual wellbeing (eg. learning and stimulation in daily life and work).