MIT Sloan Sustainability Initiative 2023 Impact Report

Message from Sustainability Initiative Director Jason Jay

2023 was such an exciting year for the Sustainability Initiative.

We redesigned and revitalized our flagship course, S-Lab, allowing us to go deeper with both concepts and real-world projects. We dramatically expanded our executive education—some of the world’s leading professional service firms are coming to our door to build their capacity and meet the market’s needs. Our reach and impact in the climate policy arena continues to accelerate, and it’s really helped build a foundation for what MIT is doing as it ramps up its own courageous action in that domain. We have helped advance the field of sustainable finance, helping investors separate the signal from the noise around ESG, and helping create a whole new field of investing for systems change. And we continue to be inspired.

These challenges of sustainability and equity are daunting. But our students and alumni, our faculty and researchers, the companies, policymakers, and investors we engage with every day, they inspire us, they motivate us. And we are looking forward to a 2024 of continued action toward a future where humans and nature can thrive for generations to come, and we look forward to having you be part of that community.

Play the video to hear from Jason Jay.

Aggregate Confusion Project

Last year was a vibrant and productive year for the Aggregate Confusion Project.

Through academic publications, op-eds, and engagement with ESG regulators, we advanced what has become our core message: ESG information is valuable to investors when we can separate the signal from the noise; greater transparency about ESG ratings will make this a lot easier. Behind the scenes, we also built new data sets on carbon emissions and ESG reporting that will fuel the next wave of our research and impact.

Top 3 Highlights

2

Removing the Noise in ESG Data

The Need for Transparency in ESG Ratings

The Financial Times featured an article by ACP researchers Florian Berg, Julian Kölbel, and Roberto Rigobon, calling out two key problems with ESG rating agencies—conflicts of interest and disagreement among rating methodologies. Regulators can address these issues by barring raters from consulting to the firms they rate and by requiring greater transparency. With better information about what raters are trying to measure and the methodology they use, they can better understand the divergence of ESG ratings.

ACP researchers published two studies that demonstrate that we can reduce the noise in ESG data and better predict financial returns by combining ratings from several different agencies to remove noise in the data. Florian Berg, Julian Kölbel, Anna Pavlova, and Roberto Rigobon laid out this approach in the 2021 paper “ESG Confusion and Stock Returns: Tackling the Problem of Noise”). A June 2023 study by Berg, Andrew Lo, Kölbel, and Rigobon, along with Manish Singh and Ruixun Zhang, “Quantifying the Returns of ESG Investing: An Empirical Analysis with Six ESG Metrics,” suggests there is a significant signal in ESG rating scores that can be used for portfolio construction despite their noisy nature.

Congratulations ACP!

We’re thrilled to share that our Aggregate Confusion Project (ACP) researchers Florian Berg, Julian Kölbel, and Roberto Rigobon were awarded the 2023 Pagano and Zechner Prize for their paper published in the Review of Finance, the esteemed journal of the European Finance Association (EFA). The ACP group’s first study continues to garner attention, winning the 2023 Pagano and Zechner Prize at the 50th Annual Meeting of the European Finance Association in Amsterdam.

Read the winning paper here SI LinkedIn Post

KEY TAKEAWAY

“ I thought impact investing was something perpetrated by unscrupulous financial institutions trying to push products onto unsuspecting investors. Boy, was I wrong.”

Andrew Lo, Charles E. and Susan T. Harris Professor, Professor of Finance, and the Director of the Laboratory for Financial Engineering at the MIT Sloan School of Management.

Join Us

With four member companies, the Sustainability Initiative ACP group is working on a program of research to improve the quality of measurement and decision making in the financial sector. To join us as a member company, email Jason Jay.

MIT Climate Pathways Project

Toward fulfilling our mission to advance the adoption of evidence-based climate policy, the MIT Climate Pathways Project nearly doubled its reach to leaders in the public and private sectors in 2023. In addition to more direct engagements with the En-ROADS climate solution simulators, our work also saw its media coverage more than double.

3 Highlights

En-ROADS on the Mainstage

The MIT Climate Pathways Project team presented En-ROADS at two high-profile, international events where leaders from government, business, and civil society convened. MIT Sloan Sustainability Initiative Faculty Co-Director John Sterman presented the simulation at not one but two mainstage events at ChangeNOW in Paris. Climate Interactive Executive Director and Co-Founder Andrew (Drew) Jones, MS System Dynamics ’97, presented it at the Thomson Reuters Foundation Trust Conference in London. Between the two events, En-ROADS reached over 1,200 leaders in the public and private sector.

Teaching Climate Diplomacy at the Highest Level

En-ROADS was embedded in the US Department of State’s Foreign Service Institute’s weeklong Climate Diplomacy course in 2023. Offered several times a year, the course covers climate negotiations, US strategic perspectives, regional security concerns, climate policy modeling, and climate communications. Foreign service officers and agency staff from around the world attended. The En-ROADS session has been consistently ranked highest for its usefulness by participants after they return to their posts.

En-ROADS at the US Department of State.

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MIT Climate Pathways Project in the News

National news coverage of the exciting work of the MIT Climate Pathways Project continued to grow in 2023, more than doubling its coverage from 2022. A key highlight was an A-Section spread in The Washington Post, which published the project team’s analysis of former House Speaker Kevin McCarthy’s proposal to plant a trillion trees as a way to address climate change.

As our reach into the private sector continued to grow, the MIT Climate Pathways Project also saw significant gains in engagements with government agency staff, international government officials, and leaders in NGOs and academia, strengthening our ability to influence climate strategy across the broader policy ecosystem.

By the Numbers

8,508

across government, business, NGOs, and academia

1,761

5,674

1,073

Owning Impact Project

How can sustainable investing, and finance more broadly, evolve to a practice that leads to transformative change?

In 2023, we launched an exciting new research project at the MIT Sloan Sustainability Initiative—the Owning Impact Project. Led by Initiative Director Jason Jay, and supported by key collaborators at the TransCap Initiative, TWIST, University of Zurich’s Center for Sustainable Finance and Private Wealth, and MIT Sloan faculty members, we have begun researching the role and potential of systemic investing. A nascent investment logic that asks what fundamental change is required, and how financial capital might be allocated to enable such change.

1

3 Highlights

Harnessing the Power of Systemic Investing for Social Change

In December 2023, the Stanford Social Innovation Review featured an article about using systemic investing for social change, written by Jess Daggers, Alex Hannant, and Jason Jay.

Read more here.

“ To move beyond single-point solutionism, impact investing must use financial capital as both resource and connective tissue….it forces us to think beyond the efficacy of any one investment—be that a project, program, asset, or venture—and recognize that if we wish to shape and shift systems, we will need to resource multiple actions in concurrent, coherent, and adaptive ways.”

— Jason Jay

Seema Gupta, SFMBA ’23, brought Jason Jay and Tod Hynes, BS ’02, to Davos 2023 to engage leaders around systemic investing and scaling climate solutions.

Alban Yau, SDM ‘23

Systemic Investing to Tackle the US Food Waste Challenge

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How do we deploy capital for effective system change?

Since earning his Sustainability Certificate, Hanson Gong, MBA ’17, has moved across the country twice, gotten married, raised a puppy, and had his first child. He’s also transitioned from his early career in strategy and operations management consulting to private wealth impact investing at Oogway Capital. He’s particularly interested in the intersection of finance and systems change within the context of impact investing.

Alban Yau, SDM ’23, and his advisor Jason Jay, created a case study that presents an example of a systemic investing approach reducing food waste in the United States, charting the Fink family's and ReFED’s transformative journey. It features the Finks’ establishment of Millstone Farm, initial philanthropic grants, and private investments, as they dive into our country’s complex food system.

“MIT’s Owning Impact research comes at an exciting time. A common shared vision of 'systems change' is starting to emerge across the private sector, impact investing, philanthropy, academia, and the public sector. Alban Yau and Jason Jay have made an initial foray into understanding investing for systems change. Now the project has tailwinds to make an intellectual contribution and help build the field.”

— Hanson Gong, MBA ’17

“The most interesting part about engaging in systems change work is how much it changes you in the process. It eventually always turns inward at the individual level to enable transformation.”

—

Are you an investor or asset owner with a systemic investing success story? We're collecting examples, and working to develop more case studies and best-practice insights for practitioners in the field.

Hanson Gong, MBA ’17

Sustainability Initiative Education

200+

Students enrolled

The Sustainability Certificate program maintained strong enrollment during 2023, with over 200 students enrolled in our flagship courses and 90 students graduating with the certificate. We restructured our courses, redeveloping S-Lab into two courses: Business Strategies for a Sustainable Future, focused on teaching fundamental strategies to solve complex environmental and social challenges; and Sustainable Business Lab (S-Lab), now solely focused on the semester-long project. Additionally, we experienced strong demand for customized Executive Education programs.

Top 3 Highlights

1

What do restorative justice and sustainability have in common?

More than you might think. Last spring, as part of S-Lab, we welcomed advocates dedicated to restorative justice, a rehabilitation model that encourages offenders to take responsibility for their actions and rebuild relationships through their commitment of time and resources. Our speakers included Hollywood film producer Scott Budnick, former New England Patriots captain Devin McCourty, celebrity barber and entrepreneur Victor “VicBlends” Fontanez, and Emmanuel “Noble” Williams of the Transformational Prison Project.

MIT Sloan Sustainability lecturer James Repenning, MBA ’02, explained the connection between restorative justice and sustainable business.“When you’re just trying to provide for yourself and your family, a lot of things go out the window,” he said. “When you are at the basic level, then you are going to eat the last fish, you are going to cut down the last tree. We have to take care of our communities if we want to take care of the world.”

Read more: From Hollywood to the gridiron, advocates champion restorative justice Watch: Youtube

Emmanuel “Noble” Williams

Victor “VicBlends” Fontanez

Executive Education Responds to Demand for Sustainability Training

Leading global consulting firms are turning to MIT Executive Education and Sustainability Initiative faculty expertise, as they seek to upskill their leaders and professionals on climate change and sustainability.

“It’s critically important that we elevate our learning and development programs to stay ahead of the changing market, C-suite priorities, and business demands.”

— Chief learning officer at a major firm

Agile Education Strategies

Embracing sustainability in executive education, recognizing the link between restorative justice and sustainable practices, and leveraging generative AI in education underscore the importance of agile education strategies—strategies crucial for pivoting effectively in a fast-paced environment, ensuring that educational programs remain relevant and impactful in an ever-changing world.

3 ChatGPT in the Classroom: Rethinking Educational Paradigms

Imagine a classroom where technology doesn’t just replace old ways of doing things, but amplifies the best of studentcentric pedagogy. Welcome to the frontier of education, where Sustainability Initiative Director Jason Jay is blending generative AI with traditional coursework to create a personalized, impact-focused learning journey for his students.

“Generative AI provides the dual advantage of scalability and personalization, allowing each student to receive individualized attention that would be impossible in a typical classroom setting. But what’s important to note here is that technology serves as a tool, not a replacement, for human interaction and intellectual engagement.”

Read the full article here.

Get Involved

Explore our Strategies for a Sustainable Business Executive Education offerings each fall and spring.

Contribute to our flagship courses by becoming an S-Lab host. Learn more about how to get involved here.

Sustainability Lunch Series

It has been a dynamic year for our Sustainability Lunch Series, as we welcomed a diverse range of guest speakers to engage with our community.

Collaborating with student clubs and other MIT Sloan departments, we hosted 14 events, with an average attendance of over 100 participants per program. Our speakers shared valuable insights on a wide array of topics, including diversity in venture capital, corporate political engagement, and the energy transition. This year has truly been exceptional for fostering co-curricular engagement and knowledge-sharing.

The Intersection of Disability & Climate Change

In an engaging conversation led by Natasha Ansari, PhD ‘28, and Shannon L Hasenfratz, graduates of the 2023 MIT Master of City Planning program and active contributors to the MIT Department of Urban Studies & Planning Disability Justice and Planning initiative, we were honored to host Kam Redlawsk as a guest speaker in March 2023.

Kam, a distinguished industrial designer and advocate for individuals with rare diseases and disabilities, shared valuable insights on the significance of disability-inclusive climate justice. The discussion delved into strategies for making a meaningful impact that addresses the complex needs of people with disabilities.

Dismantling the Prison Industrial Complex

In collaboration with the MIT Prison Education Initiative, we presented a thought-provoking discussion moderated by Roxie Miles, a 2023 Wellesley College graduate. Our distinguished guest speaker was Bianca Tylek, the founder and executive director of Worth Rises and a leading expert and advocate of criminal justice reform.

Bianca shared her profound insights on the prison industry, shedding light on how business practices contribute significantly to sustaining this detrimental system. The event centered around Worth Rises' impactful initiatives in unveiling the commercialization of the criminal legal system, as well as their efforts to organize for the protection and restoration of economic resources extracted from affected communities.

Kam Redlawsk, Industrial designer and advocate for individuals with rare diseases and disabilities.

Bianca Tylek, Founder and Executive Director of Worth Rises and a leading expert and advocate of criminal justice reform.

Transforming the Food Supply Chain with Data and Technology

In partnership with the MIT Food Supply Chain Analytics and Sensing Initiative and skillfully facilitated by Bria Hardin-Boyer, MBA ’25, we had the pleasure of hosting Erin Baumgartner as a distinguished guest in fall 2023. Erin, the co-founder of Family Dinner—a subscription share service focused on fostering identity around local food and its growers—delved into the transformative use of data and technology. She shared how these tools are effectively employed to cultivate stronger connections among local growers, consumers, and businesses, all while playing a pivotal role in minimizing waste within our food supply chain. In addition to her work with Family Dinner, Erin now works as program development manager for the MIT Initiative on Combatting Systemic Racism

KEY TAKEAWAY

Commitment to Community Engagement

The Sustainability Lunch Series plays a vital role in keeping us connected to our community. It offers a platform for insightful discussions and networking opportunities, with a diverse range of topics that draw enthusiastic participation from attendees. This reflects our deep commitment to enhancing understanding of sustainability issues.

CALL TO ACTION

Get Involved

Join us in shaping the future of sustainability education and engagement! Attend our upcoming events, volunteer to be a guest speaker, or suggest topics and speakers that inspire you.

Jen Graham to get involved.

Erin Baumgartner, Co-founder of Family Dinner—a subscription share service focused on fostering identity around local food and its grower

Alumni Engagement

Our alumni events in 2023 were marked by insightful discussions and networking opportunities.

From the engaging panel at the MIT Sloan Reunion discussing the potential of technology in addressing sustainability issues to the diverse subjects covered in our Sustainability Lunch Series and alumni networking events in NYC and San Francisco, our alumni community continues to inspire us and drive positive change in sustainability.

Top 3 Highlights

1 2

MIT Sloan Reunion 2023

If you missed the 2023 reunion, you missed Bethany Patten, EMBA ’13, moderating A Future with SustAInable Solutions, a panel featuring sustainability alumni, including Dan Harple, SF ’13, Lillian Kwang, MBA ’22, and Peter McHale, MBA ’22. Discussion centered on unleashing the full potential of technology to address pressing environmental, social, and governance (ESG) issues. Panelists talked about how they harnessed the power of the Internet of Things, Big Data, and Machine Learning to drive positive impacts on critical global challenges.

Alumni Guest Speakers

Throughout 2023, several accomplished sustainability alumni shared their knowledge and expertise at our Sustainability Lunch Series, including:

Sustainable Procurement for Positive Change

Alex Gerszten, MBA ’22

Navigating the Path from Sustainability Student to Alumni

Manuela Zoninsein, EMBA ’20, and Jeff Swiryn, SFMBA ’21

Careers in Sustainability

Chris Fort, SFMBA ’22

Corporate Political Engagement: Driving Sustainable Change

Amy Gobel, LGO ’17

Lighting the Way: Sustainability and Development Hand in Hand

Juliana Kerrest, MBA ’18

Sustainability Alumni Gather in NYC and

San Francisco

We hosted two alumni networking events during the summer of 2023. The initial event took place in New York City and was generously hosted by three distinguished MIT Sloan alumni from MUUS Capital Partners, Michael Sonnenfeldt, SB ’77, SM ’78; Kavita Patel, MBA ’21; and Ben Wolkon, MBA ’16. We collaborated on a second networking event with colleagues from peer institutions in San Francisco, providing MIT Sloan sustainability alumni with the opportunity to connect and network with like-minded peers from other esteemed schools.

Shaping Leaders Dedicated to Sustainability

Our alumni are at the forefront of driving sustainable change, showcasing their expertise and commitment through engaging discussions, networking events, and career insights. Their contributions not only inspire our current community but also highlight MIT Sloan's continued impact in shaping leaders dedicated to sustainability.

Stay Connected

Join us in continuing to make a difference in sustainability. Connect with us on social media and through our alumni network to stay updated on the latest sustainability trends, events, and opportunities to collaborate with fellow alumni and current students.

Join our Sustainability Alumni LinkedIn Group and our Sustainability Alumni WhatsApp Group to stay connected and informed within our alumni community.

San Francisco networking event

In the News

Kate Isaacs, Jason Jay, Jeremy Gregory, Elsa Olivetti

2024 Goals and Objectives

As we chart our course in 2024, we are dedicated to enhancing our reach and influence. Beyond mere statistics, our goals reflect a deeper commitment to fostering meaningful connections, driving research that matters, and amplifying the voices and achievements of our students and alumni.

careers through

initiatives, and industry partnerships. Track the rate

positions, measuring the success

and placement metrics.

Institution Building

We would not have achieved so much last year without our amazing alumni, advisory board, affiliated researchers, donors, and everyone on our fantastic team.

Sustainability Initiative Advisory Board

We welcomed five new members* to our esteemed Advisory Board in 2023. This group of seasoned professionals provide us guidance on matters of strategy, fundraising, and execution, drawing on their extensive expertise and that of their personal and professional networks.

Read their bios here.

“As a new board member, I'm excited to share my fashion retail and e-commerce expertise, but also learn more about leading-edge sustainability topics related to my industry."

— Diana Ganz, EMBA ’14, Co-Founder, SuitShop

Caroline Brown CEO, Investor, Board Member and Advisor*

Kathryn Carlson Executive Director, Rappaport Institute for Greater Boston, Harvard University*

Carolyn duPont, MBA ’16 COO, Upstream Tech

Michael Even, SM ’84 Independent Investor

Ed Fish, MBA ’12 Vice President & General Manager, Varietal Solutions, Bay State Milling Company

Diana Ganz, EMBA ’14 Co-Founder, SuitShop*

Marine Graham, MBA ’13 Head of Supply Chain, Decathlon*

Bill Hilliard, SM ’84 Operating Partner, Generate Capital

John McEvoy, MS ’94 Managing Partner, Neponset Bay Capital LP

Ajay Mehta, EMBA ’13

Vice President, Engineering Technology, Chief Engineer Resources & Development, Shell

Cecilia Melin, SM ’89

Managing Partner, Asian Technology Advisors

David Miller, SB ’90, SM ’91

Investment Manager

Nicole Obi, MIT MCP, FE ’95

President, CEO, Black Economic Council of Massachusetts*

Keishin Sasaki, SM ’89

President, Representative Director, e-solutions

Michael Sonnenfeldt, SB ’77, SM ’78

Founder, Chairman MUUS & Company, Tiger21

Raymond Wood, SM ’90

Managing Director, Group Head Power, Renewables and Energy Infrastructure, Bank of America

Merrill Lynch

*New Board Members

2023 Sustainability Certificate Graduate Ceremony

2023 Staff

Dominic Farello

Assistant Director

Sophia Governo

Program Assistant

Jennifer Graham

Associate Director

Krystal Noiseux

Associate Director, MIT Climate Pathways Project

Fellows and Teaching Assistants

Kate Bartick, MBA '23

Maria del Mar Velasco, MBA ’23

Sandhya Mahadevan, MBA ’23

Our Team

Leadership

Jason Jay Director, Sustainability Initiative, Senior Lecturer, MIT Sloan School of Management

Bethany Patten Director, Policy + Engagement, Sustainability Initiative Senior Lecturer, MIT Sloan School of Management

Roberto Rigobon

Co-faculty Director, Sustainability Initiative, Society of Sloan Fellows Professor of Management

John Sterman

Co-faculty Director, Sustainability Initiative, Jay W. Forrestor Professor of Management

Alejandra Olazabal Tamayo, MBA ’24

Paige Schank, MBA ’23

Founding Members, Aggregate Confusion Project

MassPRIM

MFS

AQR

Axioma

Asset Management One

Researchers CPP

Pamela Duke

Undergraduate Research Assistant

Joy Jackson

Graduate Research Assistant

Allison Shepard

Graduate Research Assistant

Jessica Wei

Undergraduate Research Assistant

Researchers OIP

Oliver Gottfried

Postdoctorial Fellow

Alban Yau

Research Assistant, SDM ’23

Researchers ACP

Jitendra Aswani

Postdoctoral Associate

Florian Berg

Research Scientist

Angela Chen

Research Scientist

Giulia Crippa Researcher

Thomas de Montaigne de Poncins

Research Assistant, MFin ’25

Nora Donnelly

Undergraduate Research Assistant

Cristian Foroni Researcher

Guil Hayoun

Research Assistant, MFin ’25

Florian Heeb

Postdoctoral Associate

Franziska Hittmair

Researcher

Esther Kohler

Postdoctoral Associate

Julian Kölbel

Research Affiliate

Lajos Kossuth

Postdoctoral Associate

Jérémie Lecoutre

Research Assistant, MFin ’24

Isabella Loaiza

Postdoctoral Associate

Jaime Oliver

Visiting Scientist

Adi Rubinstein

Research Assistant, SFMBA ’24

Aneil Tripathy

MCSC Impact Fellow

Bram van der Kroft

Postdoctoral Associate

Bethany Patten, Jason Jay, Sophia Governo, Dominic Farello, John Sterman, Jennifer Graham at the 2023 Certificate Ceremony.

Our Donors

We are honored to be regarded by donors as a highly promising investment in the sustainability field. Our loyal and generous supporters make it possible for us to continue to pursue our mission.

Robert G. Ackerley, ’80

Anonymous Foundation

Joan T. Bok

Yue Chen, PhD ’05

James B. Ellis II, SM ’80

Michael Even, SM ’84

Edward Fish, MBA ’12

Hanson Gong, MBA ’17

Hamid Hakimzadeh, ’73

William J. Hilliard, SM ’84

John P. Houston, SM ’94

Joanne B. Johnson

Mitch Julis

Dorothy and Robert King

John D. SF ’94 and Aedie McEvoy

Cecilia B. Melin, SM ’89

Kirsten and Dwight Poler

Keishin Sasaki, SM ’89

Gil Simon, MBA ’03

Michael W. Sonnenfeldt, ’77, SM ’78 and Katja Goldman Akira Sugano, SM ’86

TransCap Initiative

Raymond S. Wood, SM ’90 and Mary Anne J. Kim

Join us as a donor in 2024 and invest in a more sustainable future.