When the teacher of the public administration in sciences and environmental policies (MPA-OSP) Fatou Kiné Gueye, Jada Johnson and Kimberly (Mingyue) Liu entered the ESG dilemma design challengeThey saw the opportunity to apply their knowledge of their classroom to a financial scenario of the real world. Developed by the Alliance for Responsible Capitalism and Copatrocinated by the ERB Institute and Business+Impact at the University of Michigan, the competition attracted almost 50 teams of universities throughout the country. After a rigorous selection process, only 10 teams advanced to the final round, and Gueye, Johnson and Liu were among them.
THE CHALLENGE: ESG in a politically divided landscape
The competition commissioned students to act as consultants for Generibank, a fictional medium -sized regional bank that faces the growing financial losses of climate -related disasters. Forest fires, hurricanes and other extreme weather events had devastated mortgages and small businesses, which led to breaking loans and cash flow problems. Investor groups pressed the bank to establish stronger climatic commitments, warning about long -term financial risks, while political realities in states such as Texas and Florida made the initiatives of ESG a contentious issue.
Within the bank, the employees were divided, some stronger sustainability policies, while others argued that ESG was distracted from central commercial operations. Meanwhile, the new regulatory requirements in California forced Generibank to expand their sustainability reports, adding another layer of complexity.
Each team had to develop a strategic ESG roadmap that balanced climate risk management, financial viability and interested parties. But just before the final round, the competition introduced a turn: the teams had to adjust their strategies to reflect the American political landscape under the Trump administration. The key regulations of ESG were being retreated, including the climate dissemination rule of the United States Securities Commission and the US Securities Commission. And the restrictions to incorporate ESG factors into investment decisions. Generibank’s leadership now needed a plan that could navigate political uncertainty while remaining financially competitive.
From the classroom to competition
Liu was found for the first time with ESG’s dilemma design challenge and communicated with Johnson and Gueye, knowing their shared interest in sustainable finances, corporate responsibility and environmental policy would make them a strong team. Having previously collaborated in workshops and class projects, the group felt sure of its ability to address the case together.
The academic training of the team provided a solid base. Liu’s courses last semester in the Sustainable Investing Research Consulting Project deepened their understanding of corporate sustainability frameworks, while the financial management class of this semester equipped the equipment with tools to evaluate climate -related financial risks. His group discussions expanded the team’s perspective on ESG’s finances. Johnson even decided to register in emerging financial systems this semester to explore more thoroughly how ESG strategies take shape in different financial contexts.
In addition to their academic knowledge, the team obtained from an interested party conference provided by the competition, which presented ideas of industry executives, government officials, civil society representatives and academics. These perspectives shed light on tensions between volunteer commitments of ESG, regulatory uncertainty and financial incentives, helping the team refine their approach.
“We knew we couldn’t build a strategy that was based solely on regulatory support,” said Johnson. “We needed to present the financial case of ESG in a way that appealed to investors, clients and employees, regardless of political changes.”
A resistant ESG strategy
Instead of advocating direct political lobbying, the team positioned ESG as a financial risk management tool. Its strategy focused on (1) expanding green finance solutions, such as loans linked to sustainability and green bonds, (2) in development of ESG policies drive Accelerated financial risks through football floors threatened with Ai-Drint of Ai-Drint.
The team also had the opportunity to receive direct comments from Jason Fraley, director of ESG at Huntington National Bank, who evaluated his initial proposal. Their ideas helped them refine their risk assessment and their stakeholders’ participation strategy, ensuring their final recommendations aligned with the real -world financial decision making.
The final presentation
On February 1, the team presented its updated proposal before a panel of industry experts, policy formulators and sustainability leaders. Each team had eight minutes to present, followed by a question and answers session in which the judges challenged them to defend their approach.
“The best part was not just presenting, were the comments we received,” said Gueye. “Listening to industry professionals, who really face these challenges, was incredibly gratifying. He gave us the confidence that our ideas were not only feasible but valuable.”
The future of Esg
Although the main prize did not take home, the experience was pushing them beyond their comfort zones and reinforced the importance of sustainability in financial decision making.
For Gueye, the competition offered an intense learning experience in financial strategy. “Coming from a politics environment, understanding the structure of a bank and financial mechanics behind ESG was a challenge,” he said. “Our comment session with Jason Fraley was overwhelming at the beginning, introduced so much industry jargon, but helped us refine our proposal and strengthened our understanding of how ESG develops in the bank.”
Your greatest conclusion? A fund in finance is not necessary to have an impact on ESG.
“You don’t need to be an investment banker to contribute significantly,” Liu said. “This competition showed us that ESG is an evolving field, and bringing different perspectives, either from politics, science or business, is essential to shape the future of sustainable finances.”
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