How Could a Specialized Master's in Sustainability or ESG Support Your Business Career?

Climate change is becoming increasingly hard to ignore with the growing frequency of abnormally high temperatures, wildfires, and flooding.

Many countries are targeting net zero emissions amid a global push for sustainability. Businesses are also playing a central role in curbing the climate crisis by promoting sustainable practices.

Companies such as Tesla, Airbnb, and Apple are drivers of innovative technology and are aiming for a positive impact by developing sustainable solutions, like Tesla’s zero emissions ‘Model S’ car, or Apple's Clean Energy Charging, which targets clean energy sources.

To adapt to the earth's challenges, and to prepare the leaders of tomorrow for them, business schools across the world are developing specialized masters in Environmental, Social, and Governance (ESG). The focus ties in with how businesses are monitoring and adapting their practices to reduce negative impact, and to support sustainability.

Specialized masters give students the same leadership skills as a traditional master's degree program but with additional cutting-edge knowledge that will help them to become leaders of innovation, manage risk, and shape businesses towards a sustainable future.

Here we explore the ESG specialized master's, a qualification that could support your business career.

What is ESG and why is it becoming more important in sustainable business?

ESG represents the three main topic areas that companies are expected to report upon. The goal of ESG is to capture all a company's non-financial risks and opportunities.

Sustainability management is of vital importance for companies in the current climate, and investors, consumers, and employees alike are placing pressure on companies to act as stewards of social and natural capital, along with financial capital. This means placing emphasis on environmental sustainability and social innovation.

In recognition of the importance of sustainability in business management, Henley Business School has recently launched a Master's in Climate Change, Sustainable Business and Green Finance.

Professor Simone Varotto, Professor of Finance at the school, led the creation of the master's program. She said: “There is an incredibly high demand within the industry for financial experts with a practical knowledge of climate change, who understand the risks and can create projections 20 to 30 years into the future for their organizations.”

According to Deloitte, "more and more investors are incorporating ESG elements into their investment decision-making process, making ESG increasingly important from the perspective of securing capital, both debt and equity."

There is sound business sense in developing such a tactic. Assets in global ESG equity products nearly doubled (+98%) from 2019 to 2021, according to a research paper by Investment Metrics, an investment analytics provider.

What are the prospects for graduates of specialist masters covering ESG?

Around 90% of managers say focusing on ESG is crucial for their company to remain competitive, but only 60% have such a strategy in place. A recent GreenPrint survey concluded that 64% of Americans are willing to spend extra money to buy from businesses that promote sustainable products.

To bridge this gap, companies are keen to hire fresh talent with a strong understanding of sustainable business, such as those graduating from the new wave of specialized environment and sustainability targeted master's degree programs.

This development has inspired business schools to create specialized masters that will equip the next generation of industry leaders with a skillset in sustainable business models, corporate social responsibility, and environmental policy.

Employers looking for expertise in these areas are likely to swarm towards graduates in such fields, and the specialized masters will fit with Gen Z's priorities too.

Why is ESG important to Gen Z?

Studies have shown ESG performance is a major factor for Gen Z: 70% are more likely to work for a company with a strong green footprint. When they consider employment at a company, 86% of young talent also prefer to support or work for companies that care about the same issues as they do, like environmental problems, and 30% have left a business due to its lack of a corporate sustainability agenda.

Generation Z is on track to be the most qualified generation so far within 2018, 57% of 18 to 21-year olds were in higher education in the US, compared to 52% of Millennials and 43% of Gen Xers at the same age. Gen Z is highly interested in positive change, they want to prioritize diversity and inclusion, and enact sustainable developments and environmental change.

Gen Z's interests add another incentive for business schools to expand their specialist masters covering different aspects of ESG.

What are some specialized masters in sustainability and ESG?

Business schools across the US and Europe have implemented speciality master's degree courses that promote sustainability studies and environmental policy, to launch their students into working professionals with a knowledge-base that is invaluable in the modern workplace.

Here are some of the speciality sustainability degrees offered, and what you can expect from them:

Master in Environment and Sustainability Management, McDonough School of Business, Georgetown University

Georgetown University's McDonough Graduate School of Business collaborated with the Earth Commons Institute and the Graduate School of Arts and Sciences to create this program to equip future business leaders with professional skills to make management decisions in economic development and have corporate sustainability at the forefront of their minds.

“This degree encapsulates the idea that both environmental science and business principles are vitally important to achieving sustainability goals,” said Maria Petrova, Assistant Director of Graduate Education at the Georgetown Environment Institute.

The 11-month interdisciplinary program's curriculum combines principles of environmental science with a foundation in business management. The course delivers the comprehensive knowledge graduate students need to become a leader in the interdisciplinary field of sustainability and achieve environmental impact.

The program covers core components typical of a business masters, including accounting fundamentals, leadership, and business; alongside more specialist subjects. Students learn about environmental studies and science, climate change impact measurement, and environmental data visualizations, as well as cutting-edge topics such as impact investing and ESG finance. 

Master of Science in Sustainability Management, Columbia University

Columbia University's master's program works to develop students’ ability to use cutting-edge policy and management tools to help public and private organizations and governments address environmental impacts and risks, pollution control, and natural resource management.

Courses on the program are taught by premier sustainability academics and researchers, along with leading sustainability practitioners in New York City.

The curriculum includes courses such as the Physical Dimensions of Sustainability (e.g., water, energy, greenhouse gas emissions, and environmental infrastructure), General and Financial Management, and Economics and Quantitative Analysis.

Master of Science in Sustainability Transformation, ESSEC Business School

The Sustainability Transformation program teaches students fundamental management skills such as negotiation, along with specialist sustainable business concepts like ESG investing and sustainability marketing. Based on their interests, students can specialize in one of six majors, including Circular Economy, and Climate & Biodiversity. 

ESSEC provides talent and career days, along with consulting projects to help students develop their network. Outside the course, students benefit from a range of sustainability-focused student associations helping them to make an impact before they receive their graduate certificate.

To ensure they can have an impact on sustainable business and the community after securing a job, the program also has a focus on change management with modules like Leading Change and Transformation, and Creative Facilitation for a Changing World. 

Master of Science in Transformative Studies, Bocconi University

The Master of Science program at Bocconi Business School is designed with two main goals: to develop students' critical thinking and skills to help companies transition to sustainable business management and help them understand the impact of ESG criteria on business decisions. 

Students can study a wide range of electives like Designing Sustainable Cities, Technologies for Energy and Sustainable Transition, and ESG Law. 

As the demand for sustainable leaders and experts in Corporate Social Responsibility (CSR) continues to grow, graduates from the MSc in Transformative Sustainability could land emerging roles as sustainability specialists, sustainability analysts, or even launch their own sustainable ventures. 

Energy and Climate Policy Master of Science, Sussex University

Sussex's Master of Science program draws on the expertise and applied research of industry experts at the Sussex Energy Group, one of the largest energy policy research groups in the world.

The program teaches students analytical and decision-making skills while exploring policy and innovation in transforming energy systems and business administration.

The course gives students an essential foundation for careers in governmental agencies, international organizations, the private sector and NGOs. Core modules include, Policy Making and Policy Analysis, Science, Technology and Innovations: Markets, Firms and Policies, and Challenges in Energy and Climate Policy.

Whichever school you choose for a Master's, this specialized course could lead to a fulfilling and interesting career. It's likely with such a qualification that you will become an asset at any company as it looks for experts in sustainable business administration who can work to deliver energy and climate policy with impact.