According to a recent survey, young business leaders are disenchanted with market-based climate action. The survey results, conducted by the Nuremberg Institute for Market Decisions in collaboration with the St. Gallen Symposium, revealed some intriguing insights. The survey targeted 650 young leaders under the age of 35 and 250 experienced managers from large companies. Surprisingly, the majority of the younger generation believes that a sustainable economic transformation can only be achieved through a different economic and political system. This sentiment contrasts with the views of older managers, who are more optimistic about the future.
One of the key points of contention raised by the survey is the role of markets and prices in addressing climate change. The younger generation seems to have little faith in market-driven solutions, with only 47% believing that a system collapse can be avoided. Additionally, fewer young leaders see new technologies as essential for climate action compared to their older counterparts. The survey also revealed a discrepancy in the importance placed on shareholder value versus environmental and social goals by companies.
Despite the skepticism towards market mechanisms, the survey highlighted the potential of emissions trading as an effective tool for reducing carbon footprints. The success of sulfur dioxide emissions trading in the United States and carbon trading in the EU demonstrate the power of market-based solutions in addressing environmental challenges. However, both young and established managers expressed doubts about the efficacy of these instruments.
The survey results raise questions about the values instilled in young leaders by the older generation and the curriculum of institutions like the University of St. Gallen, known for its management training programs. The disparity in views between the two generations suggests a broader disillusionment with market-based approaches to climate change. This emphasizes the need for a critical reassessment of current strategies and a more nuanced understanding of the role of markets in promoting sustainability.