Climate science shows that Europe is warming faster than anywhere else. The continent is also widely seen as a global leader in sustainability, driven by stronger climate policies, progressive environmental standards and renewable energy initiatives.
Many European companies have also made sustainability a core element of their strategies, governance and reporting. This approach is reflected in business schools across the continent, where sustainability is increasingly integrated into the curriculum to meet the growing demand for graduates who can balance business growth with environmental responsibility.
Compare this to the United States, where a backlash against environmental, social and governance (ESG) investing is gaining momentum. This, in turn, is affecting the way sustainability is taught in US business schools, where some tread carefully to avoid being perceived as too “woke.”
European schools therefore appear to have a more favorable political climate for preparing the next generation of sustainable business leaders.
Anna Dibble is an American who decided to pursue a master’s degree in finance at the Stockholm School of Economics in Sweden last year, attracted by the country’s leadership in sustainability. In addition to her degree, she also works almost full-time as ESG Director at Alight, a Swedish solar developer. “The Nordic countries have always been on my radar as the ‘Silicon Valley of sustainability,’” he says.
Dibble takes courses that integrate ESG principles into finance. One of their projects involved a “double materiality” analysis of Nordea, examining how the Finnish bank’s environmental and social impact affects its financial health and vice versa.
“These experiences have enhanced my ability to drive ESG initiatives at Alight,” says Dibble, particularly as he prepares for the EU’s Corporate Sustainability Reporting Directive (CSRD), which requires companies to disclose their ESG impacts.
A practical and multidisciplinary approach to sustainability is a hallmark of Nordic business schools. In Finland, Aalto University Business School, for example, combines business with technology and arts, allowing students to approach global sustainability challenges from multiple angles.
It recently partnered with Aalto’s schools of chemical engineering and arts and design to work on circular economy solutions for the clothing industry. “We incorporate sustainability into everything we do, so that students consider these issues regardless of their major,” says Timo Korkeamäki, dean of the business school.
Ranking of European business schools
This is an initial article from 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 aspect is gaining more attention. Sandra Ool, a 2022 graduate of the part-time master’s degree in social innovation at Cambridge Judge Business School in the United Kingdom, focused her thesis on social injustice.
Ool, from Estonia, now head of EY’s financial services consulting practice in Stockholm, shared her research on the working-class experience in “elite” institutions with her employer. She says this led EY to focus more on social mobility. “My studies gave me a historical understanding of social injustice,” Ool notes, knowledge that he has brought to his work.
However, some academics warn that there is no room for complacency in European business schools. Mette Morsing, director of the Smith School of Business and Environment at the University of Oxford, believes that many institutions are still teaching outdated economic models and management frameworks that do not align with current sustainability challenges.
“A profound reform of the business school curriculum is necessary to keep it relevant,” he argues. Students are increasingly demanding more up-to-date knowledge, particularly on climate change and the concept of a “just transition”, a shift towards a sustainable economy that is inclusive and fair for all.
Pressure for change is also coming from companies in Europe. Finnish fashion and lifestyle brand Marimekko is looking for graduates with strong sustainability skills to drive its efforts across the company, which has 470 employees and 170 stores worldwide, from design to logistics.
“Graduates with knowledge of the latest sustainability academic research and new insights can be a great asset to a company,” says Tiina Alahuhta-Kasko, CEO of Marimekko. However, it suggests that business schools need to collaborate more closely with companies to address real-world sustainability challenges, beyond simple academic theory.
On the other side of the Atlantic, concerns are different. While ESG investing gained popularity in 2020, it has since faced significant pushback in the US, particularly from conservative states who accuse ESG of being “woke” and anti-business, a trend that has also influenced business education. “There is a lot of right-wing antagonism directed at higher education to teach ‘woke’ ideas,” says Andrew Hoffman, a professor of sustainable business at the University of Michigan. Business schools, he notes, fear the political blowback that could result from pushing too hard on ESG issues.
European business schools have been able to more easily integrate sustainability into their curricula. Tima Bansal, professor of sustainability and strategy at Ivey Business School in Canada, notes that while American schools have excelled at quantifying sustainability, European schools take a more holistic approach.
“US institutions often focus on the business case for ESG,” he says, while many European schools see it as a broader discipline that also encompasses business issues.
This is reflected in the approach taken by the IMD Business School in Switzerland. Students are taught to analyze core business challenges through a sustainability lens rather than treating sustainability as a separate topic.
“European business schools are uniquely positioned to lead sustainability education,” says Julia Binder, professor of sustainable innovation and business transformation at IMD, pointing to the role of high societal expectations and regulatory frameworks such as the CSRD.
For international students, like Snigdh Singh, an Indian MBA student at ESCP Business School’s Paris campus, these factors are a big draw.
“Studying sustainability in Europe offers exposure to advanced policies, innovative technologies, and strong environmental frameworks,” he says, adding that Europe’s progressive governance and public awareness can also attract students interested in sustainability.