Why Sustainability Is The Subject To Study At Business School In 2024

Gone are the days when sustainability was spoken about by only a small minority of organizations. Between 2022 and 2023, the number of global executives who said they could see a clear business case for sustainability rose by 43%.

Regulatory changes, paired with evolving demands from consumers and investors and ever-growing concern over the climate crisis, mean sustainability is now a key factor dictating the path of the global business landscape. 

Learning about sustainability at specialist institutions such as American University’s Kogod School of Business—the first carbon neutral university in the US—can therefore be hugely beneficial for ambitious business school students looking to get ahead in their careers. 

Why sustainability is core in modern business 

The growth in importance of sustainability within business has snowballed in recent years. 

Rising concern over the climate crisis, driven by record-breaking temperatures and freak weather occurrences including floods and wildfires, has led consumers to change their practices. A 2023 McKinsey report concluded that “Consumers are shifting their spending toward products with ESG (environmental, social, governance)-related claims.” 

For the same reason, investors are increasingly moving toward investments that appear sustainable, feeling they offer less risk and more potential for long-term gain than those which fail to clarify their ESG credentials. 

These changing dynamics encourage companies to act, posing the possibility of a competitive advantage for those who can shift to more sustainable business models and effectively communicate this with stakeholders. 

Regulatory changes have also added to the pressure. The EU Taxonomy and UK Sustainability Disclosure Requirements, for example, have introduced transparency obligations for global firms operating in those regions. In the US, 2023 saw the Securities and Exchange Commission (SEC) stipulate that investment funds which promote themselves under the term ESG must have at least 80% of their investments allocated to one of these areas. 

So, in today’s global business landscape, a combination of both market-driven and compliance-led factors are incentivising companies to put ESG at the core of their strategies. 

How sustainability is taught at business school 

Developing your knowledge of sustainable business strategy and gaining an understanding of how to solve complex sustainability-driven issues is therefore a great way to future-proof your career. 

Kogod offers a specialized MS in Sustainability Management designed to help students gain competencies at the intersection between sustainability and business. The innovative program won the Page Grand Prize in 2023 for excellence in sustainability education, joining previous winners including Harvard, Duke, and Cornell. 

The core curriculum of the MS in Sustainability Management covers subjects such as Business Fundamentals and Managerial Economic and Business Strategy, however it also dives into subjects including Social Sustainability and Managing for Climate Change. 

It was this dual focus that attracted Gabriela Vidad to enroll in the program in 2022. Having graduated with a bachelor’s in physics, she had a strong understanding of the scientific side of sustainability, but felt that to achieve success she needed to gain expertise in areas such as management and entrepreneurship. 

Of course, gaining a comprehensive understanding of a complex subject like sustainability is about more than in-class learning. It’s also important to gain practical experience and build applied expertise. 

The Kogod MS in Sustainability Management incorporates real-world project work with partner companies into the curriculum. Students also get the chance to travel internationally to work with global client teams and learn about sustainability best practices across different industries. 

Building a practical knowledge of sustainability alongside key theories provides a solid platform for students when it comes to life after graduation. 

Career opportunities in sustainability 

The 2024 Jobs on the Rise List published by LinkedIn found that a number of sustainability roles are among the fastest growing in the US. The top five alone included sustainability analysts, environment health safety managers, and chief growth officers. 

The value of a comprehensive understanding of the business of sustainability in preparing students to seize these opportunities is demonstrated by the strong career performance of grads from the Kogod MS in Sustainability Management. 

After leaving the program, students go on to take up roles with top companies across a range of industries. Recent employers include the consulting firm, Bain & Company; hotel chain, Marriott International; and financial institutions including the likes of UBS and the World Bank Group. 

Landing a job as a sustainability specialist after graduating from the program means Jamian Rush now has the opportunity to aid his oil and gas industry employer, Ergon, as it transitions towards a more ESG-driven business model. 

There are also opportunities for those aiming to work in the non-profit sector. After graduating in 2023, Gabriela landed an internship with Cities4Forests, an organization that helps cities connect with forests through conservation and restoration efforts. After a short period she was able to secure a full-time position with the company. 

Likewise, Mary Jo Snavely, another graduate of the MS in Sustainability, was able to land a role with the World Wildlife Fund after leaving the program. 

With a plethora of opportunities available in different functions and across a variety of industries, it’s clear that becoming knowledgeable in sustainability can help you take the next step in your career. 

With the march towards a more sustainable future only likely to go in one direction, it can also future-proof your career and place you on a path where you can not only achieve success but also make a positive and lasting impact.