Why Are Generation Z Co-Creation Solutions Effective for Sustainability Promotion? (Part 1)

Amid growing awareness of environmental and human rights issues, advancing sustainability has become an unavoidable management challenge for all companies. Dentsu Inc. has launched " REVERSE CONSULTING for SUSTAINABILITY," a service that drives corporate sustainability in collaboration with Generation Z, often called sustainability natives.Shotaro Hisashi, CEO of NEW STANDARD Inc. who tracks Gen Z trends; Yuta Matsuzaki, who established the Digital Native Room at Dentsu Digital Inc. Inc.; and Rie Tanaka, Director of the Sustainability Consulting Office at Dentsu Inc. and a Dentsu Team SDGs Consultant, discuss the service's overview and launch background. This article is the first installment of a three-part series.

Why Generation Z's Perspective is Essential for Sustainability Advancement

Tanaka: Since this is the first installment of the series, I'd like to start by discussing with Mr. Hisashi and Mr. Matsuzaki why we created this service. First, please introduce your respective roles and how you typically engage with sustainability and Generation Z.

Hisashi: NEW STANDARD is a startup founded in 2014. We handle digital media projects, total promotion for companies and brands, and problem-solving.As specialists in Millennials and Generation Z, we've communicated their values and perspectives through media. In 2022, we consolidated this expertise and launched the "NEW STANDARD THINK TANK," which conducts research, studies, and publishes findings on next-generation values, sustainability, and other social trends.

Personally, I spent my high school years in the U.S., immersed in hippie culture. I traveled extensively, visiting eco-villages and sustainability-focused communities around the world.

Tanaka: Hisashi, your experience with sustainability is so deep it's impossible to cover fully here, and you're applying that background to your current work. I get the impression that many people involved in sustainability-related business in Japan, including yourself, have lived overseas. Considering your own international experience, how do you perceive the current state of sustainability in Japan?

Hisashi: Compared to Europe and America, I do feel Japan is lagging behind. While the Japanese have a very strong sense of reverence for nature, I think a major problem is that concrete methodologies and rules for protecting and improving the natural environment haven't spread throughout society as formal knowledge.

Tanaka: Having conducted global sustainability surveys for three consecutive years, I've long been aware of Japan's challenges. What kind of work do you do, Matsuzaki-san?

Matsuzaki: At Dentsu Digital Inc., responding to growing demand for business transformation consulting that actively involves Gen Z stakeholders, we established an internal cross-functional organization called " YNGpot.™ " in 2019.I was part of that team. In 2021, based on YNGpot.™'s achievements and the further increase in demand, we formally established the specialized team " Digital Native Room " as a department dedicated to consulting on creating societies and services where digital native generations like Millennials and Generation Z can live comfortably.

Tanaka: Does your work scope also include sustainability?

Matsuzaki: When envisioning business strategies, a medium-to-long-term perspective—looking 10 or 20 years ahead—is essential. Consequently, we cannot avoid the theme of "sustainability." Furthermore, as we incorporate the authentic voices of digital native generations into our business, we've come to understand that their broad range of behaviors, including consumption, is deeply intertwined with sustainability awareness. As a result, work involving sustainability has naturally increased significantly in recent times.

Tanaka: For Generation Z, sustainability doesn't manifest as superficial ethical actions; it feels like it's unconsciously embedded in their core values. Trends like health consciousness, a return to roots, buying secondhand to save money, DIY, and wanting to incorporate agriculture and greenery into daily life existed even before the new normal emerged post-pandemic.

Matsuzaki: "Authenticity" is also crucial for them. This generation places immense importance not only on a company's purpose but also on its sincere corporate stance and transparent information disclosure. Having grown up in an era of rapid social and environmental change, they're also flexible about adopting new lifestyles. Consequently, they seem to possess the natural ability to make choices that move society in a better direction.

Tanaka: These behavioral tendencies of Generation Z perfectly align with the sustainability-conscious social trends, don't they? In my work with digital and global projects, I often heard from Generation Z, and their perspectives proved valuable for every business challenge. I realized their worldview isn't just a subject for youth trend research; it serves as a bias-breaking tool to rethink existing societal frameworks.

To integrate sustainability into business plans, we must rethink existing frameworks and consider the benefits for future generations. We need to transform negative impacts on the future into positives and rebuild businesses so these changes generate revenue. Thinking this way, I increasingly believe co-creation with Generation Z is especially valuable for management.

Not just me, but Mr. Hisashi and Mr. Matsuzaki were equally convinced, so we decided to launch "REVERSE CONSULTING for SUSTAINABILITY" together. While our specialties differ—Mr. Hisashi in digital media, Mr. Matsuzaki in digital consulting, and myself in sustainability consulting—we shared the common belief that the key lies in the attitude of learning from Generation Z.

The concept of "reverse mentoring," where older generations learn from the young

Tanaka: Could Mr. Hisashi explain the meaning behind our service name, "REVERSE CONSULTING"?

Hisashi: As values centered around sustainability and new technologies take shape, attention is focusing on "reverse mentoring" – learning from younger generations, contrary to the traditional top-down approach.REVERSE CONSULTING centers on this reverse mentoring, aiming to build the future through dialogue and sessions with the younger generation. It targets a "future from the consumer's perspective, the Gen Z perspective," rather than a "future from the corporate viewpoint."

Alongside reverse mentoring, the concept of the Modern Elder becomes crucial. Literally translated as "new elder," this mindset aims to cultivate respected seniors who possess the knowledge and skills needed for the future. They actively incorporate the opinions of younger generations, constantly update their values and themselves regarding digital and sustainability, and avoid clinging to past successes.

Tanaka: The term "reskilling" has become widespread, and many companies are now implementing new employee training and career paths. Are trends like reverse mentoring and modern elders, popular overseas for several years, also entering Japanese companies?

Hisashi: In Japan, these concepts are becoming the new standard, particularly in industries directly tied to business trends among younger generations, such as digital/internet-related sectors and the cosmetics industry.

Tanaka: Do companies that adopt reverse mentoring experience "growth" or "increased sales"?

Hisashi: While I haven't seen concrete proof, that's likely why it's spreading globally. The same applies to sustainability thinking. It's crucial for companies to properly understand and align with what younger generations take for granted—like social media and AI usage.

Tanaka: "REVERSE CONSULTING for SUSTAINABILITY" is precisely an initiative to develop sustainability-related services and business ventures together with Generation Z. We offer four menu items as entry points for consulting.

First is "REVERSE LEARNING," a workshop that incorporates Gen Z perspectives. Rather than studying Gen Z, we learn from them. It's a stance of re-examining business.

The second is "REVERSE TALK," where Generation Z engages in dialogue with management. This session-like format explores how corporate visions and management policies resonate with Generation Z's sensibilities, what truly moves them, and leads to concrete actions for envisioning the future and new approaches.

Third is "REVERSE SESSION," co-creating ideas with Generation Z. This workshop-like format involves actually drafting business plans together, aiming to solve challenges collaboratively.

The fourth is "REVERSE FORUM," where Gen Z interacts with multiple companies, not just one. While it resembles an event, it aims for collective impact by incorporating diverse perspectives to deepen discussion on themes and create opportunities for collaboration between companies.

Tanaka: Since the menu is simple, many might wonder, "How is this different from previous Gen Z solutions?" or "How does it connect to sustainability?" That's why I explained the background behind the demand for this service.

These four menus serve as input catalysts, enabling Gen Z perspectives throughout the entire process up to output. Our team combines members who routinely plan, produce, and distribute content with Gen Z alongside sustainability-focused consultants. Our strength lies in being partners who not only establish Gen Z-informed business plans at the outset but also co-develop strategy and execution while adapting to changing business environments.The service name also embodies the meaning of "sustainable consulting that goes against the grain of consultants who only create strategy upstream."

The birth of "REVERSE CONSULTING for SUSTAINABILITY" stems from tangible results in consulting practice showing that co-creation with Generation Z is effective for business conception.The key practical approach is "Reverse Mentoring." This consulting service involves re-examining existing frameworks through the lens of Generation Z to view sustainability initiatives as opportunities for business strategy. It transforms the negative impacts on future generations into positives and rebuilds business operations to link these changes to profitability.

In Part 2, we delve deeper into key points for co-creation with Generation Z and the future direction of sustainability.