Climate change is no longer just an environmental concern, it’s a business reality. No CEO can afford to ignore the changes taking place in our environment and the impact on the global economy.
Business schools focus on the long game, teaching skills for not just the next four years, but for the next four decades. MBA students don’t enroll in climate courses for ideological reasons; they see an opportunity to stay ahead in a changing business landscape. That’s why business schools — which traditionally focus on finance, marketing, and management — must make climate a bigger part of their programs.
Climate change is emerging as a new – and essential – topic in MBA programs as nearly 80% of global greenhouse gas emissions are linked to business activities, meaning the private sector isn’t just affected by climate risks; it has the power to shape the solutions. And in business, when there’s a challenge, there’s also an opportunity.
Companies are already seizing this opportunity. In 2024, global investment in clean energy was double the entire fossil fuel industry. And for good reason: research from Goldman Sachs finds that solar is now the cheapest source of new power generation in most countries, without subsidies. Low-cost renewable energy can now be paired with batteries to provide inexpensive power 24/7. That’s why Next Era, the most valuable utility in America, announced it will meet most of this decade’s forecast growth in electricity demand with solar, wind, and energy storage.
Electric vehicles represent another massive opportunity. Industry analysts predict that EVs will soon be cheaper to manufacture than comparable gasoline-powered vehicles. As prices decline, consumers are increasingly attracted to the better performance and lower operating costs of EVs. And driving range is a fading concern. Take the Stellantis Ram 1500 Ramcharger, which reviewers are calling the 'goldilocks' electric pickup truck—it can travel nearly 700 miles on a single charge.
Read more articles in this series
- Why Most Americans Get Sustainability Wrong—and How to Fix It
- The Global Renewable Energy Boom Can’t Be Stopped—Not Even by U.S. Politics
This shift is playing out globally. Europe generated more electricity from solar and wind last year than from fossil fuels. In China, more than half of all new car sales are EVs, and more solar was installed in 2024 than the U.S. has in its entire history. India’s solar sector achieved record breaking growth of 204% last year. Kenya has incubated several of the world’s most innovative off-grid solar companies and now generates 90% of its electricity from renewable sources. Even Saudi Arabia has a booming clean energy industry, commissioning the world’s largest battery energy storage system.
But as companies embrace these opportunities, they must also address the risks that come with climate change. Climate change creates new and growing risks that will separate the best-run companies – and their leaders – from the rest. Insurance companies that navigate wildfire and storm risk will survive and prosper, as will real estate investors that prepare for rising seas. SwissRe and MunichRe, the world’s largest reinsurers, already understand this, using risk management to minimize their losses on the devastating wildfires that swept through Los Angeles.
The opportunities to create value by tackling climate change are vast, disruptive, and advancing quickly. For people early in their careers, disruption creates opportunity, and growth creates wealth.
In my experience, no one enters business school hoping to work in a dying business. Success requires an understanding of the global trends that underpin growth. Which is why many business schools are focusing on two trends that are certain to impact business for decades: AI and climate change. Both trends are influenced by policy, but government action – or inaction – merely affects the speed of change, it cannot reverse the direction. Climate change is heading in only one direction and will affect nearly every business, everywhere. JPMorgan recently had this to say about climate change: “those who adapt will lead, while others risk falling behind.”
At Columbia Business School we have created the Open Climate Curriculum to share resources with other universities globally. Leveraging AI, this platform creates lesson plans using knowledge sourced in any language from any country, which proves useful for teaching the rapidly changing subject of climate change and business. Educators from more than 250 universities and colleges have already joined the platform.
Success in business comes to those who minimize risk and maximize return. My colleagues and I are teaching our students how to do that in the era of climate change. But our objective is greater than helping our students to compete and win. By acquiring the knowledge to build the low-carbon economy of the future, my students will benefit not only themselves, but all of us.
Bruce Usher is a professor of practice at Columbia Business School and co-director of the school’s Tamer Institute for Social Enterprise and Climate Change. He directs the development of the Open Climate Curriculum and is the author of the book “Investing in the Era of Climate Change.”