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9 Lessons in Sustainability

Lessons in Sustaiability - Webcard

Hoffmann Institute

9 Lessons in Sustainability

9 Lessons in Sustainability

For healthy communities to thrive on a healthy planet as the population swells to 10 billion plus people, we must transform growth and development as we know it. 

INSEAD strives to produce leaders who not only deliver value in an economy but also build sustainability into the business model to foster the economies and societies of tomorrow. Research by our faculty opens avenues for action on sustainability by business. Professors bring the latest sustainability research and thinking into the classroom, teaching MBA and MIM students, educating executives in open and customised programmes, and working with all our degree programme participants. Faculty also lead engagement, often sharing insights with alumni and collaborating with peers and partners. 

We launched the ‘Lessons in Sustainability’ series to showcase how sustainability features in the research and teaching activities of each of the nine INSEAD academic areas; Accounting and ControlDecision SciencesEconomics and Political Science, Entrepreneurship and Family Enterprise, Finance, Marketing, Organisational BehaviourStrategy, and Technology and Operations Management.

We reached out to faculty and interviewed the Chair of each of the nine INSEAD academic areas to ask them why business leaders need to learn about sustainability and the topics in focus for their academic area. Here is what we learned: 

Interviewing the Areas 

1. Economics and Political Science 

Professor Pushan Dutt, Area Chair and The Shell Fellow of Economic Transformation spoke about how economists have examined sustainability issues like inequality, the renewable energy market, and negative externalities like climate change and environmental impact. We heard how professors are researching and teaching on these topics. 

2. Strategy

Area Chair Professor Andrew Shipilov shared how sustainability represents an important toolkit that future business leaders must be comfortable with. Innovative strategies are needed to ensure we can deliver value while striking a balanced and integrated view on economic, environmental, and social performance. Teaching is informed in part by a case on ENEL Innovability co-authored by Professor Felipe Monteiro, which was recognised with an award for Ethics and Social Responsibility at The Case Centre Awards and Competitions 2021. The popular Master Strategist Day has featured social impact organisations since Hoffmann Institute involvement and support began in 2019.

3. Entrepreneurship and Family Enterprise 

We saw how start-ups can deliver solutions to social challenges, with Start-ups Against Corona connecting governments and corporations with health-focused social ventures. We heard from Area Char Professor Rose Luo, who outlined how social entrepreneurship is featured in MBA electives and executive education. Professors in this area shared work on launching social enterprises and transforming legacy business, sustainability strategies for innovation, and how private equity and venture capital investors can drive sustainability in their portfolio companies. 

4. Technology and Operations Management

This put the spotlight on Professor Luke Van Wassenhove’s work on closed-loop supply chains, circular economy and disaster and health logistics. He also helped launch the INSEAD Social Innovation Centre and the INSEAD Humanitarian Research Group. Chair Professor Manuel Sosa shared that area academics focus on the “how” of sustainability and making positive impact a business function. Professors shared their work on innovation in key areas for a sustainable future – healthcare for underserved communities, the impact of big data on social issues, and topics related to renewable energy, recycling and the transition to a circular economy.

5. Decision Sciences 

Sustainability solutions exist and innovation is opening options for action, we need leaders who decide to move in a more sustainable direction. Professor Enrico Diecidue, Chair of the area, highlighted how strategic decision-making is a tool for leaders to make better decisions and sustainability examples feature in the classroom. 

6.Organisational Behaviour

Decision making, leadership, creativity, diversity, innovation and change management are covered in the academic area, and all are needed for an organization to move to sustainable operations. Area Chair Professor Stefan Thau highlighted the SDGs as issues for leaders to consider while growing value through business activities. Area professors shared that they use innovative techniques such as virtual reality and role-play in teaching, with one course using VR to create an immersive experience as leader of Fundacao Maio Biodiversidade, a conservation organization in Cape Verde, Africa.

7. Marketing

Area Chair Professor Amitava Chattopadhyay underscored that consumers are willing to pay for truly sustainable offerings, sharing the perspective of one senior executive who said not considering sustainability in strategy today is akin to not doing any R&D and hoping to remain competitive. He also delivers an elective that uses his VR simulation, Shea Seeds: The AAK Kolo Nafaso Program, to focus on creating a sustainable supply chain for women seed collectors in West Africa. Area Professor Pierre Chandon leads the INSEAD-Sorbonne University Behavioural Lab and teaches based on his research for businesses looking to balance profitability and people’s health.

8. Finance

Finance forms the foundation of the global economy and Area Chair Professor Joel Peress highlighted the need to integrate sustainability and ESG into finance frameworks. He said sustainability is increasingly important for businesses, affecting everything from corporate strategy and operations to reporting and financing. Area professors shared that sustainability is integrated into the Financial Markets and Valuation core course as well as several electives. The Energy Transition Finance elective focuses on wind, solar, green hydrogen and storage investments, Sustainable Finance explores environmental and social issues as financial risk and opportunity, and the Politics of Finance mini elective explores climate policy. 

9. Accounting and Control.

This academic area considers sustainability on balance sheets and in financial reporting, with a focus on ESG and transparency to ensure corporate responsibility. Professors shared that the Financial Accounting core course discusses sustainability in context of assets and the Management Accounting core course explores other aspects of sustainability. It looks at social and environmental considerations in assessment of business opportunities, environmental factors in capital budgeting choices, environmental and social KPIs as a driver of sustainability objectives, and economic consequences of governance failures and risk management shortcomings.

 

Lessons from Leadership

After hearing how INSEAD professors are bringing sustainability into the school’s core courses, electives and cutting-edge research, we reached out to the Deans for their views on sustainability at INSEAD. 

Dean Francisco Veloso underscored the school’s direction. He said, “Sustainability is in focus at INSEAD right now. This is the first year with sustainability at the heart of our MBA curriculum, putting the Business School for the World at the forefront of the transition to a more diverse and sustainable future. Bringing sustainability into the classroom and rigorous research on sustainability can only help chart the course forward. When INSEAD alumni put the principles of sustainability into practice, they can create truly transformative change”.

Dean of Degree Programmes Mark Stabile highlighted that sustainability in the classroom is valuable to students and the organizations they go on to lead. “Learning about sustainability prepares INSEAD graduates to lead the companies and communities of the future. Sustainability is no longer nice to have. It is something every organization needs to have. By integrating sustainability into our flagship MBA and new Master in Management programme, we are preparing the next generation to lead in a sustainable world. They are asking for this, and we are delivering,” he said. 

Dean of Research Lily Fang put a spotlight on the potential for INSEAD academics to make a real-world impact. She said, “INSEAD is a research institution at forefront of the latest business thinking. Our research informs leadership decisions, business models and growth strategies. Sustainability in research ensures today’s leaders have the knowledge needed to usher in a more secure and prosperous future”. 

 

Lessons for the Future

Across all academic areas, INSEAD professors are sharing sustainability knowledge in classrooms as part of the core curriculum and offering opportunities for students to tailor electives for positive impact. They are engaging with alumni and at global events like the SDG Tent in Davos and ChangeNOW conference. In 2024, INSEAD launched a new MBA curriculum with sustainability built in. It formalises what professors have been doing in the past several years – preparing INSEAD graduates to lead in a world where sustainability is the new normal and responsible practices underpin our business models. 

These Lessons in Sustainability teach us that INSEAD is equipping the next generation of leaders with the knowledge needed to transform business for positive impact. By learning from INSEAD thinkers, more businesses can join this journey. Together we can champion new models of growth and achieve our shared goals. 

 

The Hoffmann Institute Lessons in Sustainability series ran in 2023 and 2024 to highlight lessons learned from integrating sustainability into all nine INSEAD academic areas. The Institute extends our appreciation to all area chairs and professors who contributed.

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