With New ESG Concentration, Michigan Ross Joins Exclusive Club

The University of Michigan has joined a very small group of U.S. universities whose business schools offer an MBA concentration in ESG, or Environmental, Social and Governance — for MBA students who want to help fight climate change, improve corporate responsibility, and champion social issues.

It is the Ross School of Business MBA’s fifth concentration or specialization, joining concentrations in Data & Business Analytics, Design Thinking & Innovation, and Healthcare Management, and a specialization in Management Science. And it comes at an important time, as U.S. corporations increasingly look to recruit managers familiar with ESG principles and the Securities and Exchange Commission finalizes reporting rules that are expected to be announced this spring.

“We aim to equip students with the tools to lead in a world where decarbonization is imperative,” says Jerry Davis, Gilbert and Ruth Whitaker professor of business administration and professor of management and organizations at the Ross School, in a news release. “Business can be a positive force for progress in the world, and the ESG concentration prepares Ross graduates to make that happen.”

WHARTON & DARDEN AMONG U.S. B-SCHOOLS OFFERING ESG CONCENTRATION

The Ross ESG concentration helps prepare students to “transform how enterprises engage with the natural environment and climate change, address the needs of a changing workforce, and provide increased accountability to investors and other stakeholders,” according to the school. More common in European B-schools, where corporate reporting rules are more stringently enforced, ESG concentrations are currently available at only a handful of U.S. business schools.

Among them are the Wharton School at the University of Pennsylvania, where beginning in fall 2023 both MBA and undergraduate students have been able to major in ESG Factors for Business, which is “designed to provide in-depth foundations for those interested in the complex relationships between business and the natural environment and business and society more broadly, including management of environmental, social, and governance (ESG) risks and opportunities, the business and economics of energy, and the ways in which firms incorporate ESG factors into their governance.”

Another top U.S. B-school, Virginia Darden School of Business, offers ESG as one of two “theme track” concentrations (the other is business analytics), as distinct from career tracks, of which there are six, ranging from Asset Management to Supply Chain Management.

“The ESG (Environment, Social, and Governance) Concentration prepares students to manage the complex society dynamics that impact business and to understand the critical issues facing multiple stakeholders,” reads the Darden School’s description of the concentration. “From impact investing to corporate sustainability to business-government relations, the ESG Concentration provides the essential skills for managing in today’s business environment. This series of courses will provide insight into the challenges, methods, and best practices for creating value for business stakeholders. The concentration is well suited for students seeking diverse careers in general management, brand management, consulting, investing, technology, and entrepreneurship.”

At Washington Foster School of Business, though the school does not offer formal concentrations, it does have three MBA specializations including an ESG Leadership Specialization launched in 2023. The 12-credit hour specialization is for students enrolled in Foster’s full-time and evening programs. To earn it, students “must complete the required core course Ethical Leadership plus 12 credits of electives or experiences earned across a set of courses approved by faculty as addressing ‘environmental’ or ‘social’ content domains.”

“Being true to our purpose to Better Humanity Through Business, the Foster School is 100% committed to developing the next generation of leaders who are adept at considering all aspects of ESG in the decision-making process. The health of our planet depends on it,” says Frank Hodge, Foster’s dean.

3 FOUNDATIONAL COURSES REQUIRED

Michigan Ross MBA students seeking to add the ESG concentration must complete three “foundational” courses: Strategies for Sustainable Development, Strategies for Sustainable Development II, and Equity Analytics. They then must complete at least 6.75 credit hours of electives, with a minimum of one course from each of the three breadth areas of Environmental (such as Energy Markets and Energy Politics, Navigating Change, and Environmental Systems Analysis), Social (such as Building Healthy Business, Social Activism, and Poverty & Inequality), and Governance (such as Law of Business Organizations and Frameworks for Understanding Social Impact Organizations).

Beyond coursework, the new concentration will include optional co-curricular activities, such as workshops and featured speakers. There have already been multiple ESG-centered events at Michigan Ross to coincide with the launch of the concentration, including an event covering utilizing ESG data in the fall of 2023, which sold out.

Learn more here.

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