ESG Finance Curriculum Undergoes Real-World Redesign
ESG learning has faced setbacks in the US but is reemerging with a new face.
ESG courses are becoming popular in Europe and Asia.
They are shifting away from idealism towards pragmatism.
ESG courses became more popular after the late 2010s, with business schools and universities engaged in a rat race to introduce them due to growing student demand, regulatory shifts, and investor interest.
However, have the current developments in the US on ESG education taken a hit?
The concept has taken on wider popularity in recent years, as it promises to combine profit with purpose. But political backlash in the US, especially in conservative states, has overwhelmed some companies, leading them to retreat from promoting environmental, social, and governance (ESG) issues.
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This transformation has dealt a heavy blow to ESG and sustainability finance courses taught at educational institutions. But instead of doing away with ESG education, they are making adjustments to give it a new face and are approaching it differently.
Business schools are now recalibrating how they teach ESG, with an increased focus on material risk, regulation, and financial performance instead of just ethical ideals — meaning these courses are shifting away from idealism to pragmatism.
In parallel with this shift, and to make the most of it, preparedness helps students bag the roles they desire, as employer interest with respect to ESG is changing. Some companies are cutting down on ESG-specific roles, while others are still hiring in these specialisations. So, students should be aware of those roles where ESG knowledge is imperative and well integrated into the job function.
What's wrong with existing ESG courses? In a way, students notice a wider chasm between theory and practice. For instance, they learn idealised models of ESG in school, but in actual jobs, issues such as fast-changing regulations, conflicting stakeholder interests, and commercial pressure await them — demanding more technical and real-world exposure in ESG education.
The World View on ESG Courses and the Takeaway for Students
Keeping aside the US, schools in Asia and Europe are increasingly keen on imparting ESG knowledge. In Hong Kong, for example, the government is encouraging ESG learning by reimbursing training costs, and courses like those offered by the CFA Institute are also seeing more takers update their technical ESG skills.
ALSO READ: CFA ESG Certificate Cost: Is It Worth It?
The key takeaway: ESG learning, offline or online, has not lost its sheen but is evolving to account for real-world applications.
Incidentally, business schools have their task cut out to persuade students that the new ESG education, shifting from broad, feel-good goals to a more pragmatic approach, stands up to scrutiny.
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Source: Financial Times
