REGISTER BY OCTOBER 19, 2025
FINAL EVENT FEBRUARY 7, 2026
The Alliance for Responsible Capitalism presents a competition focused on the interplay of ESG, climate risk, and public policy for the banking sector.
The Challenge
Join a competition co-sponsored by the Erb Institute and Business+Impact at the University of Michigan, designed by the Alliance for Responsible Capitalism.
The Dilemma
Climate change is a market failure with global consequences. How should banks influence public policy to future-proof their bottom line within today’s fraught political environment?
Banks recognize the material risks of climate change to business, with the potential for tens of trillions of economic losses annually. Accelerating the green transition also presents unprecedented potential for business growth, with trillions of annual financing opportunities. And stakeholders increasingly favor companies taking action on climate: customers want to buy their products, employees want to work for them, and investors want to invest with them. However, banks face a fragmented political landscape: the second Trump administration has prioritized advancing oil, gas, and coal production and rolling back climate action at the US federal level, while other jurisdictions have proceeded with regulatory requirements for transparency and commitments to divest from fossil fuels.
While challenging, the situation is not intractable. Rather, because the costs of inaction on climate change are so high, we must explore more deeply the aligned interests and values among banks and their stakeholders to identify paths forward. One focal point is on the potential for banks to influence public policy while managing the risk of backlash to serve a common goal: profitably financing a flourishing future for generations to come.
Your Challenge
Design a strategy for banks to accelerate a sustainable market transformation while effectively managing their legal, political, and reputational risks.
You and your team have been hired as consultants to the CEO of a commercial bank with operations across the US. You have been tasked with developing a strategy for how the bank might use its influence – in the private sector, on public policy, and with its full range of stakeholders, including regulators and elected officials – to create a business landscape that motivates sustainable behavior. Your client needs a plan that (1) identifies specific, salient pieces of public policy that either magnify or reduce market failures related to climate change and (2) enables the bank to effectively influence these pieces of public policy while mitigating backlash and legal risks. This strategy needs to be pragmatic and grounded in the reality of today’s political environment.
Timeline
In the initial round, student teams of 4 will develop written proposals based on the case materials, which include pre-recorded interviews with industry experts and stakeholders, as well as independent research.
The top 8-10 teams will then be invited to join the final in-person round at the University of Michigan in Ann Arbor on Saturday, February 7. Prior to the main event, these teams will receive feedback from panelists on their proposals and a “twist” – new inputs to be incorporated into the final presentation. The finalists will then present their final proposals live to a panel of judges representing diverse perspectives from finance, industry, civil society, and academia. An awards ceremony and networking reception will follow the event.
Prizes
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