SUSTAINABILITY
E nvironmental degradation and levels due to human activities. This increase is linked to a greater frequency and severity of extreme weather events, sea-level rise and disruptions to ecosystems and agriculture. Indeed, we are already experiencing the economic cost of climate change: evidence from global re-insurance firms shows that natural disasters alone caused an estimated $210 billion in damages in 2020. Climate change and environmental resource depletion are also the cause of supply chain disruptions, as well as a scarcity of precious metals and forest materials, creating significant challenges for business. climate change present existential threats to humanity. The Intergovernmental Panel on Climate Change reports that global temperatures have already risen approximately 1.1°C above pre-industrial The case for sustainability in business In this light, an increasing number of companies and industries are recognising that sustainable practices are not only beneficial for the environment and society but are also crucial for long-term profitability and competitiveness. A growing body of evidence, including business cases in the Harvard Business Review , McKinsey survey results and research from BlackRock, suggests that companies tend to outperform their peers financially when they prioritise sustainability. This phenomenon is often attributed to factors such as enhanced brand reputation, operational efficiencies and reduced regulatory risks. Investors are also starting to favour companies with strong environmental, social and governance (ESG) performance. The rise of sustainable investing reflects a broader recognition that long-term financial returns are closely linked to sustainable business practices. Businesses that fail to integrate sustainability into their core strategies, therefore, risk being left behind in a rapidly evolving market landscape. The United Nations (UN), as well as numerous scholars, has described climate change and our current era of the Anthropocene (the geological epoch of human-driven deforestation, pollution and biodiversity loss) as a ‘wicked problem’; a problem of such complexity and multiple dimensions that it defies straightforward solutions. Wicked problems involve numerous stakeholders with
conflicting interests and are influenced by dynamic and interdependent factors. Addressing such a multifaceted problem requires a systemic approach from all actors in society that considers the economic, social and environmental dimensions of sustainability. The problem with electives In response to businesses’ shifting priorities – as well as an increase in student demand – MBA teaching staff are incorporating sustainability topics and the UN sustainable development goals (SDGs) into their content. Just as businesses are trying to anticipate, adapt and respond to the implications of sustainability for their strategy and operations, MBA programmes are grappling with how they can most effectively embed the concepts, knowledge and skills required to address the problems of sustainability. Most AMBA-accredited business schools are also signatories of the UN Principles for Responsible Management Education (PRME), highlighting their commitment to integrating responsible management concepts and practices into business education curricula. One approach to embedding sustainability into the MBA curriculum is to offer sustainability electives or MBA concentrations in sustainability. This represents a good first step to address the topic, but I firmly believe we need to do more and work towards a comprehensive focus on sustainability for all MBA programmes. This is no small task: redesigning the structure, content and learning outcomes for an entire MBA requires significant time, effort and administrative burden, with many university quality assurance processes requiring several months of lead time before new content, modules and assessments are approved. Some may believe that offering sustainability-themed electives, or even a full concentration or pathway, is sufficient. But there are two problems with this: the first is that in doing so, the message to students and indeed all stakeholders is that sustainability is an option – it is one alternative among many. The evidence cited above suggests that we can no longer afford such a view; addressing sustainability issues in business, markets, industries and policy is a requirement, not an elective. The second problem with addressing sustainability in the form of electives or a concentration is that the students who select these topics are already predisposed towards prioritising sustainability. For other students, it provides an “out”, or other options that allow them to “focus on other things” and disregard the ‘wicked’ problem of sustainability. Being able to skirt sustainability issues in their MBA education means students will be ill-equipped to address these problems when they go back to their managerial and leadership roles.
Ambition | DECEMBER 2024 | 13
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