When Master of Public Administration in Environmental Science and Policy (MPA-ESP) students Fatou Kiné Gueye, Jada Johnson and Kimberly (Mingyue) Liu entered the ESG Dilemma Design Challenge, they saw an opportunity to apply their classroom knowledge to a real-world financial scenario. Developed by the Alliance for Responsible Capitalism and co-sponsored by the Erb Institute and Business+Impact at the University of Michigan, the competition attracted nearly 50 teams from universities across the country. After a rigorous selection process, only 10 teams advanced to the final round—and Gueye, Johnson and Liu were among them.

The Challenge: ESG in a Politically Divided Landscape

The competition tasked students with acting as consultants for GeneriBank, a fictional mid-sized regional bank facing mounting financial losses from climate-related disasters. Wildfires, hurricanes and other extreme weather events had devastated mortgage holders and small businesses, leading to loan defaults and cash flow issues. Investor groups pressured the bank to set stronger climate commitments, warning of long-term financial risks, while political realities in states like Texas and Florida made ESG initiatives a contentious topic.

Inside the bank, employees were divided—some advocated for stronger sustainability policies, while others argued that ESG distracted from core business operations. Meanwhile, new regulatory requirements in California forced GeneriBank to expand its sustainability reporting, adding another layer of complexity.

Each team had to develop a strategic ESG roadmap that balanced climate risk management, financial viability and stakeholder engagement. But just before the final round, the competition introduced a twist: teams had to adjust their strategies to reflect the evolving U.S. political landscape under the Trump Administration. Key ESG regulations were being rolled back, including the U.S. Securities and Exchange Commission’s climate disclosure rule and restrictions on incorporating ESG factors in investment decisions. GeneriBank’s leadership now needed a plan that could navigate political uncertainty while remaining financially competitive.

From the Classroom to the Competition

Liu first came across the ESG Dilemma Design Challenge and reached out to Johnson and Gueye, knowing their shared interest in sustainable finance, corporate responsibility and environmental policy would make them a strong team. Having previously collaborated in workshops and class projects, the group felt confident in their ability to tackle the case together.

The team’s academic background provided a strong foundation. Liu’s coursework last semester in the Sustainable Investing Research Consulting Project class deepened her understanding of corporate sustainability frameworks, while this semester’s Financial Management class equipped the team with tools to assess climate-related financial risks. Their group discussions broadened the team’s perspective on ESG finance. Johnson even decided to enroll in Emerging Financial Systems this semester to further explore how ESG strategies take shape in different financial contexts.

In addition to their academic knowledge, the team drew from a stakeholder briefing provided by the competition, which featured insights from industry executives, government officials, civil society representatives and academics. These perspectives shed light on the tensions between voluntary ESG commitments, regulatory uncertainty and financial incentives, helping the team refine their approach.

“We knew we couldn’t build a strategy that relied solely on regulatory support,” Johnson said. “We needed to make the financial case for ESG in a way that appealed to investors, clients and employees, regardless of political shifts.”

A Resilient ESG Strategy

Rather than advocating for direct political lobbying, the team positioned ESG as a financial risk management tool. Their strategy centered on (1) expanding green finance solutions, such as sustainability-linked loans and green bonds, (2) developing market-driven ESG policies that appealed to investors while avoiding political backlash, (3) enhancing transparency and accountability through internal and external engagement, and (4) mitigating climate-related financial risks through AI-driven carbon footprint tracking tools and client partnerships.

The team also had the opportunity to receive direct feedback from Jason Fraley, chief ESG officer at Huntington National Bank, who evaluated their initial proposal. His insights helped them refine their risk assessment and stakeholder engagement strategy, ensuring their final recommendations aligned with real-world financial decision-making.

The Final Presentation

On February 1, the team presented their updated proposal before a panel of industry experts, policymakers and sustainability leaders. Each team had eight minutes to present, followed by a Q&A session where judges challenged them to defend their approach.

“The best part wasn’t just presenting—it was the feedback we received,” said Gueye. “Hearing from industry professionals, who actually deal with these challenges, was incredibly rewarding. It gave us confidence that our ideas were not only feasible but valuable.”

The Future of ESG

Although they did not take home the top prize, the experience pushed them beyond their comfort zones and reinforced the importance of sustainability in financial decision-making.

For Gueye, the competition offered an intense learning experience in financial strategy. “Coming from a policy background, understanding the structure of a bank and the financial mechanics behind ESG was a challenge,” she said. “Our feedback session with Jason Fraley was overwhelming at first—he introduced so much industry jargon—but it helped us refine our proposal and strengthened our understanding of how ESG plays out in banking.”

Their biggest takeaway? A background in finance is not necessary to make an impact in ESG.

“You don’t need to be an investment banker to contribute meaningfully,” Liu said. “This competition showed us that ESG is an evolving field, and bringing different perspectives—whether from policy, science or business—is essential for shaping the future of sustainable finance.”