ESG: A Tale of Two Continents

In an increasingly complex global landscape, the approach to sustainability education is revealing a stark transatlantic divide.

A recent article in the Financial Times explores how European and American business schools are navigating the challenging terrain of environmental, social, and governance (ESG) education, highlighting profound differences in curriculum, political climate, and institutional perspectives.

Contrasting the sustainability approaches of European and American business schools, the article paints a nuanced picture of how regional contexts shape business education’s response to global challenges. Europe emerges as a leader in sustainability education, driven by stronger climate policies, progressive environmental standards, and a more integrated approach to ESG principles. European business schools are weaving sustainability into their core curriculum, reflecting the continent’s commitment to balancing business growth with environmental responsibility.

Key characteristics of European sustainability education include:

• Holistic Integration: Schools like Aalto University in Finland demonstrate a multidisciplinary approach, combining business with technology and arts to address sustainability challenges comprehensively. Timo Korkeamäki, the school’s dean, emphasizes embedding sustainability across all disciplines.
• Practical Application: Students engage in real-world projects that directly apply sustainability principles. Anna Dibble, studying at Stockholm School of Economics, exemplifies this approach by conducting materiality analyses and working simultaneously in the ESG sector.
• Broader Perspective: European institutions view sustainability as a multifaceted discipline, not just a business opportunity. Tima Bansal, a professor of sustainability and strategy at Ivey Business School in Canada, notes that European schools take a more holistic approach compared to the more quantitative American model. 

Conversely, US business schools face significant challenges. A growing political backlash against ESG investing has created a cautious environment. Andrew Hoffman from the University of Michigan highlights the “right-leaning antagonism” towards what is perceived as “woke” education, causing schools to tread carefully in addressing sustainability issues.

The article also reveals emerging trends and challenges:

• Social sustainability is gaining prominence, with institutions like Cambridge Judge Business School exploring social innovation.
• Some academics, like Mette Morsing from Oxford, warn that many institutions still teach outdated economic models and require thorough curriculum reform.
• Businesses are increasingly demanding graduates with sophisticated sustainability skills, as exemplified by Marimekko’s CEO seeking fresh perspectives on sustainable practices.

International students are particularly drawn to European programs. Snigdh Singh, an Indian student at ESCP Business School, highlights Europe’s advanced policies, innovative technologies, and strong environmental frameworks as key attractions. Julia Binder, a professor of sustainable innovation and business transformation at IMD Business School argues that European institutions are uniquely positioned to lead sustainability education, citing high societal expectations and robust regulatory frameworks like the Corporate Sustainability Reporting Directive (CSRD).

The article concludes by suggesting that the future of business education lies in a comprehensive, integrated approach to sustainability—one that goes beyond traditional business metrics to address broader societal and environmental challenges.

This transatlantic divide reflects more than just educational differences; it represents competing visions of business’s role in addressing global sustainability challenges. As the world becomes increasingly interconnected and environmentally precarious, the approach taken by these business schools will likely play a crucial role in shaping future business practices.

If you’d like to pursue a sustainability-focused MBA, contact us and speak with one of our EU-based consultants!