In a wake-up call to the financial services industry, a new study by Everyone Matters, reveals a demand for greater diversity to confront climate change and biodiversity loss.
More than half (57%) of Gen Z and millennials believe that financial service companies need to employ people from more diverse backgrounds to tackle big issues like climate change and biodiversity loss.Â
This can include people across sectors and with different educational backgrounds to avoid ‘group think’. Only 12% of 18–34-year-olds disagree with the statement.
Similarly, 56 per cent of 18–34-year-olds also believe the financial services industry should play a bigger role in tackling climate change and biodiversity loss.
The urgency of this demand is underscored by the recognition that the financial services industry, particularly the pensions sector, plays a pivotal role in shaping our collective future. The World Economic Forum's Global Risks Report 2024 positions biodiversity loss among the top three global threats over the coming decade.
Concurrently, the Future of Jobs 2023 report identifies creative and analytical thinking as the paramount skills for the near future, underscoring the necessity for the financial services industry to foster these competencies to navigate the complexities of climate and biodiversity risks effectively.
Pat Sharman, Co-founder of Everyone Matters, emphasizes the vital need for innovative and transformational strategies to tackle these monumental challenges. "It's more apparent than ever before that we need to drive more creativity and transformational behaviour to address the big issues facing us today. Cognitive diversity in teams can enhance the ability to foresee and adapt to the multifaceted and evolving global challenges," Sharman states, advocating for a broad spectrum of perspectives across sectors and educational backgrounds to combat the dangers of 'group think'.
This call for diversity extends beyond professional backgrounds, touching on the very strategies employed in pension contributions. Over half of the younger demographic (51%) believes that pension funds should pivot towards investments that directly contribute to combating climate change and stemming biodiversity loss. This represents a significant shift in perspective, aligning financial planning with the broader goals of environmental sustainability and social responsibility.
The findings highlight a growing consensus among the younger generation that the financial services industry must assume a more proactive stance in addressing environmental and social issues. With 56% of 18–34-year-olds asserting that the industry should intensify its efforts against climate change and biodiversity loss, the message is clear: the time for change is now.
Everyone Matters, through its advocacy, underscores the power of inclusive teams in spearheading the industry's response to these challenges. By harnessing the creative potential of cognitively diverse teams, the financial services sector can unlock innovative solutions to mitigate climate and biodiversity risks and embrace social change, including the transition to a low-carbon economy.
The call for diversity is not just a moral imperative but a strategic necessity. As the financial services industry looks to the future, embracing diversity in all its forms will be key to navigating the complexities of today's global challenges, ensuring a sustainable and equitable future for all.