Master’s degree in administration in environmental science and policy (MPA-esp) Students Fatou Kiné Gueye, Jada Johnson and Kimberly (Mingyue) liu have joined. ESG Dilemma Design Challengethey saw the opportunity to apply classroom knowledge to real-world financial scenarios. Developed by the Alliance for Responsible Capitalism and co-sponsored by the ERB Institute and Business+Impact at the University of Michigan, the competition has brought together nearly 50 teams from universities across the country. After a strict selection process, only 10 teams advanced to the final round. And Gueye, Johnson and Liu were among them.
Challenge: ESG in a politically divided landscape
This competition placed the students on duty to act as consultants for Generibank. Generibank is a fictitious medium-sized regional bank facing an increase in economic losses from climate-related disasters. Wildfires, hurricanes and other extreme weather events have destroyed mortgage owners and small businesses, causing loan defaults and cash flow issues. Investor groups pressured banks to set strong climate commitments, warning of long-term financial risks, and political realities in states such as Texas and Florida have made ESG initiatives a controversial topic.
Within the bank, employees were split. Some people advocated for stronger sustainability policies, while others argued that ESG was diverted from core business operations. Meanwhile, new California regulatory requirements forced Generibank to expand its sustainability reporting, adding another complexity.
Each team had to develop a strategic ESG roadmap that balances climate risk management, economic viability and stakeholder engagement. However, just before the final round, the competition introduced a twist. The team had to adjust their strategy to reflect the evolving US political landscape under the Trump administration. Key ESG regulations were rewind, including the Securities and Exchange Commission climate disclosure rules and restrictions on the incorporation of ESG factors into investment decisions. Generibank’s leadership required a plan that allowed them to navigate political uncertainty while still remaining financially competitive.
From classrooms to competition
Liu first encountered the ESG dilemma design challenge and contacted Johnson and Gaie. Knowing their shared interest in sustainable finance, corporate responsibility and environmental policy made them a strong team. The group, previously collaborated on workshops and class projects, was confident in their ability to work on cases together.
The team’s academic background provided a strong foundation. Liu’s coursework in the Sustainable Investment Research Consulting Project class has deepened an understanding of the corporate sustainability framework, but this semester’s financial management class equips the team with tools to assess climate-related financial risks. Their group’s discussions broadened the team’s perspective on ESG finance. Johnson even decided to register with the emerging financial system this semester to further explore how ESG strategies are shaped in a variety of financial contexts.
In addition to their academic knowledge, the teams drew from the stakeholder briefings offered by the competition. It was characterized by insights from industry executives, government officials, civil society representatives and academics. These perspectives shed light on the tensions between voluntary ESG commitments, regulatory uncertainties and financial incentives, and helped the team improve their approach.
“We knew we couldn’t build a strategy that relied solely on regulatory support,” Johnson said. “We had to make ESG financial claims in a way that appeals to investors, clients and employees regardless of political change.”
A resilient ESG strategy
Rather than advocating direct political lobbying, the team positioned ESG as a financial risk management tool. Their strategies focus on (1) expanding sustainability-related green finance solutions such as loans and green bonds, (2) developing market-driven ESG policies that appeal to investors while avoiding political backlash, (3) increasing transparency and accountability through internal and external engagement, and (4) mitigating the financial risks of mitigating AI-Drenve-Drenive’s carbon footprint.
The team also had the opportunity to receive direct feedback from Jason Frally, the ESG Chief Executive at Huntington National Bank, to evaluate the initial proposal. His insights have helped to improve risk assessment and stakeholder engagement strategies and ensure final recommendations consistent with actual financial decisions.
Final Presentation
On February 1st, the team presented updated proposals before a panel of industry experts, policymakers and sustainability leaders. Each team was followed by an eight-minute Q&A session, where judges challenged them to follow their approach.
“The best part was the feedback we received, not just presenting it,” Gueye said. “The contact from industry experts who actually addressed these challenges was incredibly rewarding. It gave us confidence that our ideas were not only viable, but also worth it.”
The future of ESG
Although they did not win the top prize, the experience pushed them beyond their comfort zone and strengthened the importance of sustainability in financial decision-making.
For Gueye, the competition provided a fierce learning experience in financial strategy. “It was a challenge to come from a policy background and understand the structure of banks and the financial mechanics behind ESG,” she said. “The feedback session with Jason Fraley was overwhelming at first. He introduced industry jargon, but it helped me improve my proposal and strengthen my understanding of how ESG will develop in the banking industry.”
Their biggest point? No financial background is required to affect ESG.
“You don’t have to be an investment banker to contribute meaningfully,” Li said. “This competition has shown that ESG is an evolving field and that bringing different perspectives from policy, science and business is essential to shaping the future of sustainable funding.”
