In recent years, business schools worldwide embraced the integration of Environmental, Social, and Governance (ESG) principles into their curricula. This surge was driven by regulatory changes, investor interest, and an increasing student desire to intertwine purpose with profit. However, as political resistance grows, particularly in the U.S., institutions are recalibrating how they teach ESG topics. The question now is whether this shift signals a correction or merely a maturation phase for ESG education.

At Yale School of Management, educators emphasize that ESG remains integral to financial risk assessment. Senior lecturer Todd Cort highlights the necessity for students to consider factors beyond shareholder returns. Meanwhile, the job market is evolving; in the U.S., there's been a backlash against ESG, especially in conservative states, prompting some employers to de-emphasize their ESG strategies. Major financial institutions have adjusted their sustainability teams, yet demand for ESG expertise persists, albeit within broader business contexts.

This adjustment reflects a broader trend among educational institutions. Instead of abandoning ESG courses, schools are refining them, shifting focus from broad ideals to practical applications involving material risks, regulations, and financial outcomes. California's UCLA Anderson School of Management's Ivo Welch notes that course offerings will likely align more closely with market demands.

Recent graduates like Yiwen Liu from the National University of Singapore underscore the gap between academic theory and real-world application. Liu, now at Deutsche Bank, observes that while university frameworks present idealized models, actual implementation involves navigating complex stakeholder dynamics and regulatory shifts.

New York University's Stern School of Business continues to see robust student interest in sustainability-focused classes. Founding director Tensie Whelan advocates for teaching sustainability as good management practice that enhances both financial and societal performance. Similarly, at Oxford’s Saïd Business School, the emphasis has pivoted towards holistic sustainability and systems thinking.

Globally, organizations like the CFA Institute report sustained interest in ESG education. Over 70,000 individuals have pursued the CFA Institute’s sustainable investing certificate, indicating strong regional engagement, especially in Asia-Pacific areas such as Hong Kong. Graduates like Jean Sau from Imperial Business School highlight growing opportunities in southeast Asia, though she notes gaps in technical coverage during her studies.

Jad Bazih from Audencia Business School in France views current challenges as a "stress test" for ESG training. He anticipates a move away from superficial rhetoric towards a discipline rooted in quantifiable data linking directly to financial metrics.

Business schools initially capitalized on the burgeoning interest in ESG. Now, they must demonstrate its tangible value amidst changing circumstances. While ESG education evolves, it continues to hold significant relevance in shaping future financial leaders equipped to address global challenges.