Northwestern Investing in Green Companies, and More – Chicago News

Northwestern Investing

Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week.

The Case for Investing in Green CompaniesKellogg Insight

Northwestern University Kellogg School of Management professor of finance Ravi Jagannathan recently co-authored a new paper, which found that the more companies adopted greener practices, as defined by environmental, social, and governance (ESG) criteria, the more adaptable they are to changes in environmental regulations and the higher likelihood their share prices could increase.

Jagannathan and his co-authors stressed the importance of environmental risk, “particularly in the age of social media.”

He adds, “Today’s consumers can communicate and mobilize much faster—for instance, to shame a company for its unsustainable practices. Social media has made it easy to identify violators. If you invest in companies with shady environmental practices, you may be caught by surprise.”

He also adds, “Companies that pollute more now will be adversely affected by more stringent environmental laws coming into play and by alternative technologies spurred by environmental concerns.”

“What is standing in the way of coal is not regulation. You need to worry about alternative technologies catching up in response to consumers’ concerns.”

Jagannathan advises companies to “prepare for ESG-related changes [or they] will lose out in the long run.”

Read more about Jagannathan and his team’s research here.

Is There an Expert in the House? – Chicago Booth News

Three University of Chicago Booth School of Business entrepreneurs recently participated in a lunchtime panel, “The Cross-Disciplinary Formula for a Successful Venture,” held at the Harper Center in Hyde Park as part of the Polsky Center for Entrepreneurship and Innovation’s Innovation Fest.

The panelists discussed the impact that Booth community resources had on their startups and use the talk as an opportunity to offer advice to aspiring entrepreneurs on financing, product development, marketing, and personal growth.

ExplORer Surgical CEO and co-founder Jennifer Fried, MBA ’15 whose startup functions as a “a new digital playbook for operating personnel,” wrote about the “many cross disciplinary programs [it] took advantage of,” including the Polsky Center and the UChicago Startup Investment program.

Ascent Technologies co-founder Brian Clark, MBA ’17, whose firm “helps companies build and manage regulation compliance programs,” characterized this “sense of collectivism and community, [which] allows new ventures to thrive and grow.”

Tovala co-founder David Rabie, MBA, ’15, whose food technology company “pairs a steam-based oven with a meal-kit subscription service,” unpacked the challenges of bringing a new product to market.

“We’re trying to fundamentally change the way people think about eating at home. We have customers as young as 20 and as old as 85, but our real target is young families. It’s a massive market and we’re still trying to figure out the best way to reach these customers. We haven’t cracked that nut yet.”

Glean more insights from Chicago Booth entrepreneurs here.

Business and the Cycle of NatureQuinlan School of Business Blog

Loyola Quinlan professor of sustainable business management Nancy E. Landrum, Ph.D., recently wrote an article for the Quinlan blog that “outlines how businesses can learn from nature’s 3.8 billion years of survival.”

She writes:

“Businesses generally use resources in a more linear fashion: we take resources from nature—water, plants, animals, minerals—and we transform them into products to sell. The products are then used and discarded. This has led to a depletion of resources and an abundance of waste.”

“But it can be quite simple if approached from the lessons of the cycles of nature: renewable, without waste, and conducive to life. If every company’s actions followed these simple guidelines learned from nature’s 3.8 billion years of survival, then it becomes clear that the company is creating conditions for its own survival.”

Read Dr. Landrum’s entire article here.


About the Author

Jonathan Pfeffer

Jonathan Pfeffer joined the Clear Admit and MetroMBA teams in 2015 after spending several years as an arts/culture writer, editor, and radio producer. In addition to his role as contributing writer at MetroMBA and contributing editor at Clear Admit, he is co-founder and lead producer of the Clear Admit MBA Admissions Podcast. He holds a BA in Film/Video, Ethnomusicology, and Media Studies from Oberlin College.

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