With the advent of stringent climate disclosure regulations, corporations are in urgent need of a workforce equipped with the necessary skills to navigate new demands. Yet few professionals possess the interdisciplinary skills essential for this task. Business schools have a prime opportunity to prepare the next generation for leadership in the carbon transition. However, this task surpasses their current scope. It calls for an interdisciplinary approach, broadening beyond traditional business education.
It’s Time for Sustainability to Become a Core Part of MBA Programs
There’s an unmet demand from companies for climate-savvy business leaders.
February 07, 2024
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Summary.
Business schools must adapt their curricula in response to the increasing demand for professionals skilled in sustainability and climate change management. This need is driven by evolving global climate disclosure regulations, such as those proposed by the SEC and implemented in California and the EU, mandating corporations to disclose climate-related financial risks and their carbon emissions, including indirect emissions (Scope 3). Currently, many companies fall short in quality and consistency of sustainability disclosures, highlighting a significant skills gap in the workforce. Business schools must incorporate interdisciplinary approaches in their programs, combining environmental and climate science with traditional business skills like carbon accounting, strategy, and governance. The curriculum should foster a common language between disciplines, such as sustainability and accounting, and include hands-on experiential learning. While some accounting firms and trade associations are offering courses in climate finance, these efforts are insufficient compared to what a comprehensive, climate-focused MBA program could provide. The adaptation of business school curricula is not just a necessity but an opportunity to lead in the training of future leaders in corporate sustainability.