Student-run ESG funds bridge the gap between theory and practice in sustainable investing.

Student-run ESG funds in business schools provide experiential learning for MBA students, allowing them to make real-world investment decisions with donor-backed capital or mock portfolios. These initiatives combine ethics, analytics, and risk management, teaching sustainable investing in a hands-on, high-stakes environment. The programs have improved job prospects for students and influenced asset managers and corporate boards, promoting transparency and responsibility.

MBA students are increasingly immersed in real-world investment decisions through student-run ESG funds, providing hands-on, high-stakes learning experiences. These initiatives, which have evolved from extracurricular CSR clubs to core components of business education, offer students a unique opportunity to understand and practice sustainable finance [2].

At many MBA programs, students manage actual donor capital or mock portfolios, making buy and sell decisions that carry reputational stakes. By applying ESG ratings and performing due diligence, students simulate the complex tensions between profit, ethics, and long-term impact. Regular portfolio reviews and faculty guidance ensure students develop a deep understanding of sustainable investing [2].

The success of these programs is evident in improved job prospects for students and their influence on asset managers and corporate boards. Student-run funds have become informal incubators for innovative ESG strategies, promoting transparency and responsibility in the investment landscape [2].

However, these programs must scale to prepare future leaders for a decarbonizing world. Integrating interdisciplinary expertise and making these initiatives more accessible across campuses is crucial. As ESG investing becomes more sophisticated, so too must the curricula that shape its stewards [2].

In conclusion, student-run ESG funds are a powerful tool for teaching sustainable finance, providing students with real-world experience and influencing the broader investment community. As these programs continue to evolve, they hold the potential to shape the next generation of responsible investors.

References:
[1] https://www.ainvest.com/news/evaluating-ata-creativity-path-profitability-deep-dive-financial-resilience-strategic-shifts-2508/
[2] https://www.thehindu.com/education/how-student-run-esg-funds-teach-sustainable-investing/article69900289.ece