For businesses to thrive in the decades ahead, the world needs a stable climate — and the responsibility to address climate change can’t fall only on sustainability experts.
“Everyone should leave business school functionally literate in climate,” says associate professor Meghan Busse, whose five-week course, What Every MBA Should Know About Climate, provides fundamental knowledge that students can apply to any role or industry.
The class gives an overview of climate change through the lenses of science, economics, global politics, engineering and more. In the first week, Busse explains concepts such as how scientists measure the temperature of the Earth, why carbon dioxide emissions last so long in the atmosphere, and where greenhouse gases come from. With this foundation, students can more effectively analyze media reports about climate change or proposed mitigations.
While the discussions can be technical, they’re hardly dry. Busse shows data from the United Nations Intergovernmental Panel on Climate Change indicating that the world would see extreme species loss and large regions would become uninhabitable if the Earth were to warm by 3 to 4 degrees Celsius above preindustrial levels (see graphic, “The perils and promise”).“At the end of that first week, someone almost always asks me, ‘Is there any reason for hope?’” Busse says. “I point out to them that I am only teaching this class because I think there is.”
She highlights recent progress in renewable-energy design and manufacturing that is driving the cost of renewables below the cost of fossil fuels — a tipping point of its own that could speed the adoption of technologies aimed at slowing global warming (see graphic, “The perils and promise”).
Students in the class also explore their own interests by proposing questions about climate change and researching the answers. Topics have ranged from the prospects for geothermal engineering to the impact of recycling to the role of green cities.
Busse applies her expertise in energy and environmental economics to helping students understand how they will be responsible for addressing climate change as business leaders. She covers accounting and data reporting, including recent guidance from the U.S. Securities and Exchange Commission on climate disclosures.
Above all, she wants students to recognize that whether they work in operations, supply chain, compliance, marketing or another specialization, they will play a role in ensuring a livable planet.
“When I talk to audiences in public and people ask what they can do about climate change . . . individuals can only do so much,” Busse says. “But MBA students are about to go out and have important positions in organizations that have their hands on the big levers of decarbonization.”
The perils and promise
What could go wrong
3.3 billion to 3.6 billion (IPCC p. 5)
People who live in locations that are highly vulnerable to climate change
If global temperatures rise 3 to 4 degrees Celsius above preindustrial levels:
Maps: IPCC graphic SPM-3, parts a) and b), particularly 3- and 4-degree scenarios:
- Risk of species losses
- Heat and humidity risks to human health
Source: United Nations Intergovernmental Panel on Climate Change
What’s going right
The levelized cost of electricity generated by renewables such as solar and wind power is becoming competitive with conventional technologies such as natural gas and coal. “Levelized cost” refers to the cost of building, maintaining and operating an energy source over its lifespan.
Source: Lazard Levelized Cost of Energy+ Report, 2024