When 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 real-world financial scenarios. The competition, co-sponsored by the University of Michigan’s ERB Institute and Business + Impact, was co-sponsored by the University of Michigan and attracted nearly 50 teams from universities across the country. After a rigorous selection process, only 10 teams entered the final round, with Gueye, Johnson and Liu in it.
Challenge: ESG in a politically divided landscape
The competition ordered students to serve as consultants to Generibank, a fictional mid-district bank facing economic losses from climate-related disasters. Wildfires, hurricanes and other extreme weather events have damaged mortgage holders and small businesses, leading to loan defaults and cash flow issues. Investor groups pressure banks to develop stronger climate commitments to warn of long-term financial risks, while political reality in states such as Texas and Florida makes the ESG initiative a controversial topic.
Within the bank, employees are divided – some advocate for stronger sustainability policies, while others believe ESG is distracted by core business operations. Meanwhile, new regulatory requirements in California have forced generations to expand their sustainability reporting, adding another layer of complexity.
Each team must develop a strategic ESG roadmap to balance climate risk management, financial viability, and stakeholder engagement. But before the final round, the game introduced a twist: Teams must adjust their strategies to reflect the political landscape of the United States under the Trump administration. Major ESG regulations are retreating, including the SEC’s climate disclosure rules and restrictions on incorporating ESG factors into investment decisions. Generations of leadership now require a plan that drives political uncertainty while maintaining financial competitiveness.
From classroom to competition
Liu first encountered the ESG Dilemma Design Challenge and got in touch with Johnson and Gueye to know that their shared interest in sustainable finance, corporate responsibility and environmental policy will make them a strong team. The group has previously collaborated in workshops and classroom projects, so it is confident in their ability to solve the case together.
The team’s academic background provides a solid foundation for the foundation. LIU’s last semester coursework in the Sustainable Investment Research Consulting Program category deepened her understanding of the company’s sustainability framework, while this semester’s financial management class equips the team with tools to assess climate-related financial risks. Their panel discussions expanded the team’s perception of ESG finance. Johnson even decided to join the emerging financial system this semester to further explore how ESG strategies can be formed in different financial environments.
In addition to their academic knowledge, the team draws inspiration from stakeholder briefings provided by competitors, which also provides insights from industry executives, government officials, civil society representatives and scholars. These views illuminate tensions between voluntary ESG commitments, regulatory uncertainty and economic incentives, helping the team refine their approach.
“We know we can’t develop strategies that rely solely on regulatory support,” Johnson said. “We need to provide financial cases for ESG in a way that attracts investors, customers and employees, regardless of political shifts.”
Elastic ESG strategy
Rather than advocating 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 of Huntington National Bank, who evaluated their initial recommendations. His insights helped them refine risk assessment and stakeholder engagement strategies, ensuring that they are ultimately advised in line with real-world financial decisions.
Final speech
On February 1, the team presented the latest proposal to the group of industry experts, policy makers and sustainability leaders. Each team had eight minutes, followed by a Q&A session where the judge challenged them to defend their own methods.
“The best part is not just the introduction, but the feedback we receive,” Guy said. “The listening of industry professionals who actually address these challenges is incredibly beneficial. It gives us confidence that our ideas are not only feasible, but valuable.”
The Future of ESG
Although they did not receive the highest award, this experience took them beyond their comfort zone and enhanced the importance of sustainability in financial decision-making.
For Gueye, the competition provides a wealth of learning experience in financial strategy. “From the policy background, understanding the structure of banks and the financial mechanisms behind ESG is a challenge,” she said. “Our feedback session with Jason Fraley was overwhelming at first—he introduced a lot of industry terms—but it helped us refine our advice and strengthen our understanding of how ESG plays a role in the banking industry.”
What is their biggest gain? Financial background is not necessary to have an impact on ESG.
“You don’t have to be an investment banker to contribute meaningfully,” Liu said. “This competition shows us that ESG is an evolving field, bringing different perspectives – whether policy, science or business – is crucial to shaping the future of sustainable finance.”
