Climate science shows that Europe is warming faster than anywhere else. The continent is also widely recognized as a world leader in sustainability, driven by stronger climate policies, progressive environmental standards and a commitment to renewable energy.
Many European companies are also putting sustainability at the core of their strategy, governance and reporting. This focus is also reflected in business schools across the continent, which are increasingly incorporating sustainability into their curricula to meet the growing demand for graduates who can balance business growth with environmental responsibility.
Compare this to the United States, where the backlash against environmental, social, and governance (ESG) investing is gaining momentum. This is also affecting how sustainability is taught in U.S. business schools, some of which are careful not to appear “woke.”
Therefore, European schools appear to have a favorable political environment for developing the next generation of sustainable business leaders.
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Anna Dibble is an American who chose to pursue a master’s degree in finance at the Stockholm School of Economics in Sweden last year, drawn to the country’s leadership in sustainability. While completing her degree, she works almost full-time as head of ESG at Swedish solar power developer Alight. “Nordic has always caught my attention as the ‘Silicon Valley of sustainability,’” she says.
Dibble is taking a course on integrating ESG principles into finance. One of her projects concerns Nordea’s “dual materiality” analysis, which examines how the Finnish bank’s environmental and social impact impacts its financial health, and vice versa. We investigated that.
“These experiences have strengthened my ability to drive ESG initiatives at Alight,” said Dibble. Especially as we prepare for the EU’s Corporate Sustainability Reporting Directive (CSRD), which will require companies to disclose their ESG impacts.
A practical and interdisciplinary approach to sustainability is a hallmark of Nordic business schools. For example, Aalto University Business School in Finland combines business, technology, and the arts to enable students to approach global sustainability challenges from different angles.
Most recently, we have partnered with Aalto’s School of Chemical Engineering and Art and Design to work on circular economy solutions for the clothing industry. “We embed sustainability in everything we do, so our students, regardless of their major, take these issues into account,” said Timo Korkeamäki, Dean of the Business School. I say.
European business school rankings
This is an earlier version of the ranking report published on Monday, December 2
While the “E” in ESG (environmental impact) is often at the forefront of business education, the social aspects are receiving more attention. Sandra Orr, a 2022 graduate of the part-time MSc in Social Innovation at Cambridge Judge Business School in the UK, published a paper focused on social injustice.
Estonian-born Orr, who is now a director in EY’s financial services consulting office in Stockholm, shared his research on working-class experiences in “elite” institutions with employers. This has led EY to focus more on social mobility, she says. “My research has provided me with a historical understanding of social injustice,” Orr said. That’s an insight she’s incorporated into her work.
But some academics warn that there is no room for complacency for European business schools. Mette Morsing, director of the Smith School of Enterprise and Environment at the University of Oxford, believes many educational institutions are still teaching outdated economic models and management frameworks that are not in line with today’s sustainability challenges.
“Business school curricula need to be overhauled if they are to remain relevant,” she argues. Students are increasingly seeking more up-to-date knowledge, particularly about climate change and the concept of a ‘just transition’ (transition to a sustainable economy that is inclusive and fair for all).
Pressure for change is also coming from European companies. Finnish fashion and lifestyle brand Marimekko is looking for a graduate with strong sustainability skills to drive the company’s efforts across its 470 staff and 170 stores worldwide, from design to logistics. Masu.
“Graduates with knowledge of the latest academic research and fresh perspectives on sustainability are a huge advantage for companies,” says Marimekko CEO Tina Arachta-Casco. However, she suggests that business schools need to go beyond mere academic theory and work more closely with businesses to address real-world sustainability challenges.
Across the Atlantic, concerns look different. ESG investing soared in popularity in 2020, but has since faced a major backlash in the US, where ESG has been criticized as “woke” and anti-business, particularly by conservative states, and this trend It is also affecting education. “There’s a lot of right-wing backlash aimed at higher education aimed at teaching ‘woke’ thinking,” said Andrew Hoffman, a professor of sustainable enterprise at the University of Michigan. He notes that business schools are wary of the political backlash that could arise from pushing ESG issues too hard.
European business schools can now more easily incorporate sustainability into their curricula. Tima Bansal, professor of sustainability and strategy at Canada’s Ivey Business School, says American schools are better at quantifying sustainability, while European schools take a more holistic approach. points out.
“While American institutions often focus on the business case for ESG,” she says, many schools in Europe view ESG as a broader discipline that extends to business subjects.
This is reflected in the approach taken by IMD Business School in Switzerland. Students are taught to analyze core business challenges through the lens of sustainability, rather than treating sustainability as a separate subject.
“European business schools are in a unique position to take the lead in sustainability education,” argues Julia Binder, professor of sustainable innovation and business transformation at IMD. He pointed out the role of the regulatory framework.
These factors are a big draw for international students like Snigd Singh, an Indian Master of Business Administration student at ESCP Business School’s Paris campus.
“Studying sustainability in Europe gives you exposure to forward-thinking policies, innovative technologies and a strong environmental framework,” he says, adding that Europe’s progressive governance and public awareness are also sustainable. He added that it will appeal to students who are interested in the possibilities.
