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From climate change to AI, leading researchers explored how better risk analysis can help build a more resilient future.

1 minute read

Climate resilience in focus at London Climate Action Week

Lou Lee — Mon, 14 Apr 2025 10:15:24 +0000

Climate resilience in focus at London Climate Action Week

Lou Lee Mon, 14/04/2025 - 10:15

8 September 2026 News

Global experts explore new ways to navigate an uncertain future

7 September 2026 News

51�Թ�� Business School academics take to the stage in Lisbon

29 July 2026 News

51�Թ�� launches UK’s first master’s degree focused on AI’s economic and policy impact

29 June 2026

Delivered in collaboration with General Atlantic, the event reflected the Centre for Climate Finance and Investment's (CCFI) growing role as a convenor of interdisciplinary expertise on climate risk and finance. Discussions explored how climate-related risks such as extreme weather are increasingly affecting economic stability, infrastructure, and investment decisions, and how organisations are adapting their approach to managing these risks over the long term.

The event opened with a keynote from Abigail Ng, Chief Sustainability Officer at the Monetary Authority of Singapore (MAS), who highlighted climate resilience as a key part of protecting economic security. This was followed by a panel discussion chaired by Rowan Douglas CBE, Honorary Practice Fellow at CCFI, and featuring Kemal Erçevik (Bank of England), Natasha Fowlie (General Atlantic), Paul Munday (S&P Global), Julian Wentzel (HSBC).

A central theme throughout the conversation was the need to integrate climate and nature risks into the core functioning of financial systems, rather than treating them separately. Speakers highlighted the importance of better data, shared standards, and clearer ways of measuring risk in order to improve decision-making across banking, insurance, regulation and investment.

“This is what CCFI is all about: a platform that brings together scholarly excellence and leading market participants to deliver effective solutions at scale.”

Dr Enrico Biffis

Academic Director of CCFI and Professor of Actuarial Finance

Rowan Douglas commented: “We now have our resilience priorities confirmed and an excellent community of financial-sector partners to mobilise with CCFI and 51�Թ��’s School of Convergence Science. Our mission is to help retrain the invisible hand to value resilience and better protect exposed assets and communities in the years and decades ahead.”

In closing remarks, Dr Enrico Biffis, Director of CCFI and Professor of Actuarial Finance and Academic, said: “This is what CCFI is all about: a platform that brings together scholarly excellence and leading market participants to deliver effective solutions at scale.”

The event underscored CCFI’s role within 51�Թ�� Business School as a bridge between academic research and industry practice, and highlighted ongoing collaboration with MAS and other partners to strengthen resilience in the face of growing climate challenges.

Panel speakers (from left to right): Natasha Fowlie (General Atlantic), Kemal Ercevik (Bank of England), Julian Wentzel (HSBC), Paul Munday (S&P Global), and Rowan Douglas (51�Թ�� Business School).

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The Centre for Climate Finance and Investment (CCFI) brought together leaders from finance, insurance, law, technology, policy and academia for an event on Climate Resilience & Economic Security during London Climate Action Week (20-28 June).

Abigail Ng and Rowan Douglas at London Climate Action Week

2 minute read

“Representation influences capital allocation” says Lara Cathcart at 51�Թ��’s third annual Women in Finance event

Shamita Harsh — Mon, 14 Apr 2025 10:15:24 +0000

“Representation influences capital allocation” says Lara Cathcart at 51�Թ��’s third annual Women in Finance event

Shamita Harsh Mon, 14/04/2025 - 10:15

8 September 2026 News

Global experts explore new ways to navigate an uncertain future

7 September 2026 News

51�Թ�� Business School academics take to the stage in Lisbon

29 July 2026 News

51�Թ�� launches UK’s first master’s degree focused on AI’s economic and policy impact

3 March 2026

Once characterised as a “boys’ club”, the finance sector is undergoing a cultural shift that is reshaping how decisions are made. Greater representation at senior levels is increasingly recognised as influencing how capital is allocated.

51�Թ�� Business School’s third annual Women in Finance event explored how women are influencing capital markets and redefining leadership across sustainable finance.

An investment narrative that is rooted in embracing change

The keynote address was delivered by Hortense Bioy, former Head of Sustainable Investing Research at Morningstar Sustainalytics, who focused on building a more sustainable and inclusive financial future. She explored how geopolitical uncertainty has reshaped sustainable investing strategies, creating both complexity and opportunity.

“The media often debates whether ESG is dead,” Bioy observed. “What we are witnessing right now is an evolution of practices, a recalibration by businesses and investors alike. What’s fading is a version of ESG that relied heavily on labels and was often disconnected from financial outcomes, to make room for pragmatism and realism.”

Her message underscored the importance of data-driven research and thoughtful analysis in navigating rapidly changing markets. She also offered advice to young women entering the sector, encouraging attendees to embrace opportunity: “Step beyond your comfort zone. Visibility and persistence matter. No is rarely the end.”

“Through events like Women in Finance, 51�Թ�� Business School reaffirms its commitment to advancing women across the financial sector, creating space for leadership, visibility and meaningful dialogue.”

Lara Cathcart

Professor of Finance, Academic Director for MSc Finance and MSc Risk Management and Financial Engineering

Improving gender inclusion in sustainable finance

The panel discussion, moderated by Fiona Frick, Finance Advisory Board Member and Founding Partner at Circe Invest, examined how female voices are shaping sustainable finance, impact investing and fintech.

Lise Renelleau, Head of Research and Innovation for the IQ Lab at HSBC Asset Management, reinforced the importance of measurable impact. She expressed optimism that as access to high-quality data improves, ESG – once perceived as a top-down imposition – is increasingly being integrated into portfolio construction and reporting. While AI and advanced technologies can enhance data analysis, she stressed that human judgement remains essential in translating information into meaningful insight.

Kamini Banga, Chair of the Banga Family Trust, reflected on her experience working in India, where workplace equity was less established when she began her career. From identifying public healthcare investment needs in rural communities to overseeing family enterprise, she highlighted the importance of a just transition in emerging markets.

Zoe Jankel, Vice President and Senior Credit Officer at Moody’s Ratings, spoke about cultural change within organisations. She noted a shift away from expectations that women must conform to traditionally masculine leadership styles. Increasingly, authenticity is recognised and valued at senior levels.

The evening concluded with remarks from Lara Cathcart, Academic Director for MSc Finance and MSc Risk Management and Financial Engineering. Acknowledging the significant evolution in the finance industry, she reflected that there are still male-dominated pockets, especially at the senior leadership level:

“Representation is not simply about equity; it directly influences how capital is allocated, how risk is assessed, and how innovation is fostered. Through events like Women in Finance, 51�Թ�� Business School reaffirms its commitment to advancing women across the financial sector, creating space for leadership, visibility and meaningful dialogue.”

Note: This article's headline was updated from: “Representation influences capital allocation” says Professor of Finance at 51�Թ��’s third annual Women in Finance event on 05.03.2026.

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51�Թ�� Business School’s event showcased female leaders driving sustainable investing, ESG innovation and long-term value creation.

Main image: 51�Թ�� Business School | Fergus Burnett

3 minute read

Alumni Blog: Ravi Varghese, Head of Sustainable Investing at a global asset management firm

Francesca Hoare — Tue, 04 Mar 2025 09:31:29 +0000

Alumni Blog: Ravi Varghese, Head of Sustainable Investing at a global asset management firm

Francesca Hoare Tue, 04/03/2025 - 09:31

9 July 2026 Alumni

Alumni Q&A: Florence Perramond, Climate Change, Management & Finance 2022

After building experience across venture capital investments, impact asset management and fundraising, Florence Perramond developed a strong focus on connecting capital with high-impact opportunities.

1 June 2026 Alumni

Lessons, insights and early career advice from 51�Թ�� Business School Master’s alumni

We recently caught up with some of our Master’s alumni, who reflected on their early careers after graduating from 51�Թ�� Business School. In this blog, they draw on their own experience to offer advice to those who are about to enter the job market.

29 May 2026 Alumni

Real career advice from 51�Թ�� MBA alumni

We recently caught up with alumni from 51�Թ�� Business School’s Full-Time MBA, Weekend MBA and Global Online MBA programmes, who shared insights and advice into succeeding in your career post-MBA studies. Read what they have to say in this blog.

20 February 2023

Alumni

If investors want businesses to clean up their act, they need a seat at the table. That’s according to Ravi Varghese, Head of Sustainable Investing at global asset management firm Epoch Investment Partners.

After seven years as an investment analyst, Ravi Varghese followed his interest in climate change by taking a role with Ceres, a sustainability organisation based in Boston. But he missed the cut and thrust of investment and went on to complete an MSc in Climate Change, Management & Finance at 51�Թ�� Business School in 2018.

“51�Թ��’s reputation at the intersection of science and technology and management really stood out, and its network has been incredibly helpful.”

Promoted at Epoch in New York after joining as an analyst in 2019, he is now in charge of environmental, social and governance (ESG) and, with his team, helps assess the implications of ESG issues for the firm’s portfolio of around 500 listed companies.

Dealing in controversy

Grappling with ethics is part of the job. Nothing, in his view, is off limits when it comes to applying the tools of ESG investing – from fossil fuels through to defence and Big Tech. “We don’t exclude any sectors; controversial industries are more likely to benefit from a thoughtful ESG approach.”

Investors had grown pessimistic about the prospects of hydrocarbons, he says, but when energy prices soared, many ESG investors found themselves without exposure to these pivotal companies.

“Some sectors have fallen out of favour, but we’ve always said these companies are central to the global economy and energy security and will continue to be so for the next 30 years,” he explains. “Many are making the transition to lower carbon energy, and we want to take part in that.”

It’s perfectly reasonable that the tech giants should be subject to scrutiny

Divesting from fossil fuels doesn’t reduce emissions, it simply shifts the ownership, “and if that ownership becomes opaque, it could make things worse.”

Big Tech, with its vast influence over societies and economies, is fraught with pitfalls for ESG investors, but can’t be ignored. “It’s perfectly reasonable that the tech giants should be subject to scrutiny,” he says. “As investors, we continue to think how we can be effective partners while challenging practices that could ultimately draw a backlash from society or regulators.”

If a client’s reputation is at stake, a company fails to reform or displays weak governance, then it may be time to depart. “One of the interesting things about ESG is that it merges the pragmatic reality of the corporate world with more complex issues around ethics and reputation.”

The growth of ESG

Even in the last three years, ESG has developed apace, says Ravi. “Not every asset manager had an ESG team then, which is very different today. ESG had to overcome a lot of scepticism… It means many things to many people, so definitions are important.”

In his role, Ravi often engages directly with companies to dive deeper into the detail around ESG performance, and he works closely with investment analysts in his company. Investor stewardship is another important pillar in ESG – increasingly, for instance, shareholders are asking businesses for plans to report and cut emissions and meet environmental and social targets. His team is also responsible for explaining the firm’s ESG philosophy to its clients.

Controversial industries are more likely to benefit from a thoughtful ESG approach

While formal qualifications aren’t a prerequisite for entering the ESG field, he’s grateful for the solid grounding delivered by his time at 51�Թ�� Business School.

“It gave me a foundation in climate science and the political, economic and technological tools for mitigating emissions. I think it really accelerated my ability to pursue this career. ESG is now being applied to so many different industries and asset classes, and it promises to be a really interesting journey.”

Ravi Varghese in brief

Completed the MSc in Climate Change, Management & Finance at 51�Թ�� Business School
Head of Sustainable Investing at global asset management firm
Worked as a senior associate at a non-profit organisation advocating for sustainability
Completed his undergraduate degree at Yale University

MSc Climate Change, Management & Finance

Programme

3 minute read

Alumni case study: Making sustainability accessible

Francesca Hoare — Tue, 04 Mar 2025 09:31:29 +0000

Alumni case study: Making sustainability accessible

Francesca Hoare Tue, 04/03/2025 - 09:31

9 July 2026 Alumni

Alumni Q&A: Florence Perramond, Climate Change, Management & Finance 2022

1 June 2026 Alumni

Lessons, insights and early career advice from 51�Թ�� Business School Master’s alumni

29 May 2026 Alumni

Real career advice from 51�Թ�� MBA alumni

29 June 2021

Alumni

Ecofye is a climate action advisory that specialises in helping companies minimise their environmental impact and drive long-term competitive advantage. It was set up by Daniela Arroyo-Olson and Tiago Fachada, two entrepreneurs dedicated to saving the planet. They met while studying MSc Climate Change, Management & Finance at the Business School. Find out what they are doing to support SMEs with their sustainable goals, the launch of their new platform Ecofye+ and how you can join the green revolution today!

Our story

Our journey began back in 2019 when we saw there was a widespread awareness among businesses to take action against climate change, but not enough was being done to reduce environmental impacts and truly integrate sustainability into everyday business decisions.

There is still a great market pressure and demand for companies to become more sustainable and reduce their environmental impact. But it can be overwhelming to examine and analyse this effectively. And what does sustainability really mean? How can you measure it? To answer these questions requires the right expertise, and time to implement the required sustainable changes.

Given their limited resources, this problem is especially acute among SMEs. This discourages them from taking meaningful sustainability measures. But given SMEs make up 90% of the business landscape in the UK, there is great potential to deliver a shift in circularity, decarbonisation and social impact. We are passionate about supporting people to join the green revolution, so we decided to combine our expertise to help companies tackle their climate challenges and make a difference.

By improving our environmental impact can have real effect on our planet. That is why we are inviting everyone to join the race to net-zero as global leaders, governments and societies take important steps towards fighting climate change.

Ecofye maps out a company’s climate-related risks and opportunities to offer tailored and time efficient solutions, with the use of machine learning. We help companies find solutions that address the underlying causes of climate change. Our sustainability framework not only analyses SMEs sustainability performance but also to provide accurate solutions to accelerate climate action.

Future-proofing for sustainable business

We believe there's never been a more important time than now for companies to take action. And that wherever a company is on its journey, it is possible to achieve sustainability goals. Our mission at Ecofye is to support companies with this and help drive a long-term competitive advantage.

We recently launched the Ecofye + platform, with the aim of making sustainability accessible and affordable for all SMEs. It allows you to measure your sustainability performance for free via the platform and receive your sustainability score based on circular economy, emissions and social impact. You can also set sustainable target for your company, set a target road map, track your emission reduction and offset with real, trackable and certified carbon credits.

What's next for Ecofye

Although we are a young company we were delighted to be nominated as a top sustainability company in London 2021. Best Startup UK highlights small and medium enterprises from the UK to help them be recognised internationally. We can now look forward to offering environmentally impactful solutions to companies from all over the world.

Ecofye are currently being supported by 51�Թ��’s Enterprise Lab, inspiring the next generation of student innovators and entrepreneurs.

Entrepreneurship

MSc Climate Change, Management & Finance

Programme

2 minute read

My journey as a social entrepreneur at the Business School

Helen Richardson — Wed, 12 Feb 2025 14:21:54 +0000

My journey as a social entrepreneur at the Business School

Helen Richardson Wed, 12/02/2025 - 14:21

9 July 2026 Alumni

Alumni Q&A: Florence Perramond, Climate Change, Management & Finance 2022

27 April 2026 Alumni

Faith Ruto, Executive MBA 2011

Faith Ruto completed her Executive MBA at 51�Թ�� Business School while working at Shell, where she led global technology, digital transformation, and strategic change initiatives.

11 November 2025 Alumni

Alumni Q&A: Kristian Gubsch (MSc Innovation, Entrepreneurship & Management 2022)

Kristian Gubsch is the Chief Technology Officer & Co-Founder of Mars Materials, Inc. PBC™, and with a background in chemical engineering, he leads the development and scale-up of the company’s carbontech.

15 May 2024

Student blog

Sankar Venkataraman Murali is a student studying MSc Innovation, Entrepreneurship & Management at 51�Թ�� Business School. In this blog, Sankar shares their motivations for studying the programme, opportunities for furthering skills in innovation and leadership, and how it's shaping them into a future entrepreneur.

I am grateful for the myriad opportunities at 51�Թ�� Business School. From assuming leadership roles to triumphing in innovation competitions, each step has enriched my personal and professional growth.

About Me

I am an aspiring social entrepreneur and sustainability advocate, currently pursuing MSc Innovation, Entrepreneurship & Management at 51�Թ�� Business School. My prior experiences, including leading projects like Project Zaraat and founding Career Wings, have endowed me with a versatile skill set in operations, content creation, and business innovation. These projects have significantly contributed to my professional development and personal growth, strengthening my commitment to effecting positive change in society and the environment.

Why I chose to study MSc Innovation, Entrepreneurship & Management

They say love at first sight isn't a myth, and I can attest to that. It happened to me twice (don't ask about the first time), with the second occurring when I discovered the course offerings at 51�Թ�� Business School. Words like "Innovation," "Entrepreneurship," and "Management" seemed to leap off the screen, resonating with my passions and identity. These concepts have always sparked my excitement and naturally drew me to the diverse skills encompassed by these topics.

Choosing 51�Թ�� Business School was an easy decision. The institution's reputation for providing abundant opportunities and exposure, combined with the chance to immerse myself in various entrepreneurship clubs and societies, was irresistible. The opportunity to study, learn, and grow alongside students and professors from around the world was incredibly appealing. Having been deeply involved in social entrepreneurship for the past three years, I aimed to continue this journey at 51�Թ��, seeking to collaborate on business ideas that benefit society, create a positive impact, and address significant challenges.

Clubs, societies and leadership

Upon arriving at 51�Թ��, I began seeking opportunities and experiences to engage with. I joined clubs and societies such as the Innovation & Entrepreneurship Club, Consulting Club, and Climate Entrepreneurs Club. I was elected Career Leader for my cohort, marking the beginning of my active contribution to the 51�Թ�� community in this role. As a Careers Leader on the Staff Student Committee (SSC), I was tasked with guiding over 90 peers through the maze of career opportunities and events, advocating for their career-related interests. This role proved both challenging and rewarding, allowing me to enhance the student experience and contribute to their professional growth.

Another significant milestone was being selected as the Vice President of Sustainability for the Dean's Student Advisory Council (DSAC). In this role, I was entrusted with spearheading sustainability initiatives, driving environmental awareness, and integrating sustainable practices into the School's ethos. I aim to leave a legacy of environmental stewardship and responsible business practices. I also established a Sustainability Committee, and we recently received the Community Fund to organise a new event at the Business School, focused on creating a Green Guide for incoming students at the university.

Innovative victories and sustainable solutions

A highlight of my time at 51�Թ�� was our team's victory in the VeChain x EasyA x University of Cambridge Hackathon. Competing against 21 teams from across the UK, our project, LogiQ, a decentralised application designed to revolutionise freight sharing in road logistics, emerged victorious. This victory was not just a celebration of our innovative solution but also a testament to the power of collaboration, diverse skill sets, and a shared vision.

Additionally, I have been actively involved in the Pre Climate Accelerator at the Climate Entrepreneurs Club, where my team is developing VeguVault, a vending machine that dispenses fresh greens grown via soilless vertical farming. This system ensures produce is kept in nutrient-rich water and harvested only when purchased, guaranteeing maximum freshness. The produce is stored in a climate-controlled environment, optimising preservation and nutritional value. This innovative approach aims to enhance urban access to fresh, sustainable produce while minimising food waste.

Looking forward

As the summer term approaches, I am filled with anticipation about developing my business startup, leveraging the extensive knowledge and insights gained from modules such as Venture Capital and Growth Finance, Strategic Management, Entrepreneurship, Technology and Innovation Management, and Design Thinking for Innovation and Impact, among others. My involvement in various clubs, workshops at the 51�Թ�� Enterprise Lab, and participation in business clubs and hackathons have prepared me for this moment. I have attended events such as the London Venture Crawl and masterclasses on topics such as “How to Pitch” and “How to Find Your First Customer.” I am excited to apply these theories and concepts in a real-world context, aiming to make a tangible impact through my venture.

Reflecting on my journey, I am grateful for the myriad opportunities at 51�Թ�� Business School. From assuming leadership roles to triumphing in innovation competitions, each step has enriched my personal and professional growth. These experiences have brought me closer to becoming the entrepreneurial leader I aspire to be, instilling a commitment to leveraging innovation for a better, more sustainable world. This journey of love, challenges, and achievements continues, marking a path of learning, impact, and transformation.

Discover MSc Innovation, Entrepreneurship & Management

MSc Innovation, Entrepreneurship & Management is designed to equip graduates with the skills to become entrepreneurs or lead innovation from within companies.

Download a brochure

Read more about MSc Masters' Programmes at 51�Թ�� Business School in our brochure.

How to apply

Discover our admissions process for the MSc Innovation, Entrepreneurship & Management including entry requirements, how to apply and key dates and deadlines.

Entrepreneurship

Student Journey

MSc Innovation, Entrepreneurship & Management

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4 minute read

Professor Eddie Anderson on overcoming the risk and uncertainty of the energy sector

Shamita Harsh — Fri, 31 Jan 2025 10:53:04 +0000

Professor Eddie Anderson on overcoming the risk and uncertainty of the energy sector

Shamita Harsh Fri, 31/01/2025 - 10:53

9 September 2026 Knowledge

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27 August 2026 Knowledge

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3 August 2026 Knowledge

Why making AI too easy to use is a risk for business

A passion for mathematical analysis in energy

"The management of risk and uncertainty is often hampered by a belief that we know things we don't, and the long-term nature of this sector makes accurate forward planning particularly difficult," he explains.

Professor Anderson's research focuses on supply chain management, risk mitigation, and decision-making in an industry where uncertainty is a constant challenge. "Uncertainty is something all businesses face, particularly when it comes to developing future strategies and setting targets. And nowhere is this more challenging than in the energy sector, where so many domestic and global variables are at play,” he explains.

At 51�Թ��, he teaches Energy Analytics and has published three books along with approximately 70 academic papers, further solidifying his impact on the field.

Managing risk in energy markets

One of the biggest challenges in energy economics is the unpredictability of pricing and demand. Professor Anderson highlights the dangers of overconfidence in predictions and reliance on technology without accounting that can bring high levels of future uncertainty. Political factors, unexpected global events like a pandemic or global conflict, and the risk of inaccurate predictions, known as "deep uncertainties “, further complicate forecasting.

"A mathematical analysis can help to manage these high levels of uncertainty and risk, and is essential in developing effective business strategies," he says.

It's a time-consuming exercise to flesh out a wide range of different scenarios, play with the variables, and identify what this means in terms of future strategy. But it's absolutely necessary, and by thinking outside the box, Professor Anderson says, we can minimise the danger of getting it wrong. This is crucial in a sector like energy, which is at the heart of all our lives and relies so heavily on long-term planning.

The challenge of predicting energy markets

The transition to renewable energy presents new challenges but in some ways we have been successful. While solar and wind technologies have become more cost-effective, we are committed to the goal of achieving net-zero emissions by 2050, a target which now looks increasingly unachievable.

Professor Anderson points out that carbon capture has not developed as expected, and renewables still struggle with supply-demand mismatches. Hydrogen has a role to play, particularly as a route to the decarbonisation of industrial processes, but the large amounts of energy storage that we need to address the supply-demand challenge are still problematic and very costly.

Price and demand

Price and demand are the two key variables in any business – and price in the energy sector is very difficult to predict or control. None of the various options available for a decarbonised energy system have prices that we can confidently predict ten years from now – and the demand side of the equation is also highly uncertain.

As we move away from natural gas for heating and petrol for transport, the demand for electricity will increase dramatically, but we are struggling to anticipate by how much, and how quickly, this will happen, he says. One alternative to the more traditional methodology of probability is the concept of "Least Worse Regret" or "Minimax Regret". This looks at past decisions with the benefit of hindsight, tests the outcome of different policies and strategies across a broad a range of scenarios, and attributes a tangible value to the difference or "regret".

"As a result of the energy transition to net zero, we are facing enormous uncertainties, some of which we can't easily put probabilities on, nor does it make any sense to do so," says Professor Anderson. "It means we need to find ways of planning to deal with that."

Exerting influence over energy demand

Professor Anderson emphasises that managing energy demand will require a combination of strategies.

"These might comprise 'smart' technology to control when energy is drawn down, pricing incentives and disincentives to lower demand at times of minimal supply, cost-effective energy storage, and ways to lower our overall energy demands – through better insulated buildings for example. It will take more than one of these developments to change the dynamics in this sector."

Professor Anderson wants to improve the way we look at energy going forwards: "This sector is a unique global ecosystem. It's in our nature as humans to be storytellers, but this sometimes comes with a confidence that simply isn't realistic.

"In the race to transition to net zero by 2050, it's vital that we acknowledge the things we don’t know and make use of analytical methodologies in creative ways to manage a very uncertain future."

During his career, Professor Anderson has held Faculty positions at Cambridge, the University of New South Wales, and the University of Sydney. Through his research and teaching, Eddie Anderson continues to influence the energy sector, shaping the way businesses and policymakers approach risk and uncertainty in an evolving global landscape.

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Professor Eddie Anderson tells us why a creative approach to analytics is crucial to managing the energy sector.

Professor Eddie Anderson Professor of Analytics and Operations Management Department of Analytics, Marketing and Operations - 51�Թ�� Business School

4 minute read

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Sustainable consumption: What’s holding us back and what can be done about it

Eduardo B. Andrade — Wed, 15 Jan 2025 12:14:02 +0000

Sustainable consumption: What’s holding us back and what can be done about it

Eduardo B. Andrade Wed, 15/01/2025 - 12:14

More blogs

9 September 2026 Knowledge

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27 August 2026 Knowledge

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3 August 2026 Knowledge

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21 October 2025

The global ‘consumer class’ is predicted to reach 5.7 billion within the next decade. As the demands on the planet’s natural resources continue to grow, this group—especially the wealthier segments—has a key role to play in mitigating climate change and environmental degradation through sustainable consumption.

To date, however, this has proved challenging – people have genuine environmental concerns, but frequently fail to translate these into sustainable, environmentally friendly consumer habits. Our latest research explores why this is the case and how we can address the problem, identifying a range of barriers to sustainable consumption and ways for consumers, businesses and policymakers to overcome them.

Mapping the problem

To understand the obstacles, it’s useful to break them down into three main categories: market, individual and societal. Market obstacles relate to products and services themselves, including price, availability and perceived quality. Individual obstacles are rooted in people’s motivations and beliefs, including awareness, biases and understanding of impact. Societal obstacles relate to influences that arise from the social environment, such as norms, political identity and socioeconomic status.

Within each of these categories, barriers can be overcome in two ways. They can be directly removed or reduced through targeted interventions (minimisation). And when structural constraints make barriers too entrenched to minimise, they can be worked around with creative solutions (circumvention).

Market obstacles

Differences in the availability of a product or action, or how visible or convenient it is, can influence consumers’ decisions. Sustainable options and practices often suffer in this regard – recycling and repair take more effort than throwing things away or replacing them, while eco-friendly options can be outnumbered by plastic-wrapped rival products, for example. The sustainability premium that sees eco-friendly choices cost more is another barrier to sustainable consumption, while consumers may also view some of these products as lower-quality.

Policymakers can reduce the visibility advantage of unsustainable products by, for example, banning single-use plastics and taxing companies for excessive packaging, while making environmental benefits clearer through mandating consistent sustainability messaging on products, packaging and ads. Right-to-repair laws, meanwhile, can trigger the growth of a repair-and-reuse infrastructure.

Alternatively, retailers could further increase the availability and salience of second-hand options, which often happen to be more sustainable and cheaper than the conventional alternatives. Manufacturers and shops could bundle unsustainable and eco-friendly options together, giving consumers the opportunity to at least try more sustainable options.

Marketing campaigns that attach sustainability perceptions to manufacturers as a whole, rather than to individual product features, provide an opportunity to boost overall perceived quality and link quality and sustainability in consumers’ minds.

Individual obstacles

Sustainable choices are strongly impacted by the extent to which consumers spontaneously think of sustainability when considering their options, and the perceived impact that an eco-friendly choice might have. Common biases towards wanting to own items or preferring the default option, meanwhile, are strong drivers of waste and overconsumption.

Education can help, both by more entrenching sustainable principles in consumers’ minds and by teaching them about the environmental impact of ownership and choices. At the same time, it can also be helpful to embed sustainability into product attributes people already prioritise, for example, focusing on the health impacts of microplastics to encourage eco-friendly packaging choices.

On a simpler level, changing the narrative by presenting sustainable options as the status quo (rather than the alternative) can help circumvent biases by relying on inertia rather than engagement. Research has found this to be effective in normalising renewable energy, reducing meat consumption, and boosting sustainable investing. It may also help overcome the tendency to own a product rather than to rent it.

Societal obstacles

In much of modern life, unsustainable consumption has become the norm, including in transport, household energy and nutrition. People’s political views and class perception can strengthen these norms and set them against change. Socioeconomic differences exacerbate the damage this causes, with the wealthiest responsible for the most environmental damage, and the least wealthy worst affected by the consequences.

Messaging is key to overcoming these barriers. For example, sustainability communication that is more in line with one’s political identity is more likely to be effective. If these messages are delivered by a body or an individual with existing standing among a particular group, they can be even more impactful.

Similarly, messaging or events that deliberately or spontaneously signal a green norm can help change behaviours. Consumers are more likely to install solar panels or heat pumps if they see their neighbours doing so. Gamifying sustainable habits, e.g. by offering points and rewards for eco-friendly choices, can also help to reset norms by activating alternative motivational pathways.

Future potential

Our research sets out the primary obstacles to sustainable consumption, some proven and promising ways to minimise or circumnavigate them, and – critically – the gaps where further research could explore new or more impactful solutions. In this way, it can serve as a roadmap for developing our understanding of environmentally friendly consumption and how to promote it, which will be vital as we move towards an ever more consumer-driven global society.

This article draws on findings from “Obstacles and Opportunities for Sustainable Consumption: A Comprehensive Conceptual Model, Literature Review, and Research Agenda” by Eduardo B. Andrade (51�Թ��) and Yan Vieites (FGV-EBAPE (Escola Brasileira de Administração Pública e de Empresas))

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Balancing climate ambition and energy security: The case for renewable acceleration in Indonesia

Milica Fomicov — Wed, 15 Jan 2025 12:14:02 +0000

Balancing climate ambition and energy security: The case for renewable acceleration in Indonesia

Milica Fomicov Wed, 15/01/2025 - 12:14

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For a nation rich in natural sources for renewable power generation and with aggressive targets to decarbonise, Indonesia currently exploits just a fraction of its potential renewable power – could it accelerate the transition?

Indonesia harnesses just 0.3 per cent of an estimated 3.7 TW of potential renewable electricity. Yet the Southeast Asian nation has ambitions to slash its use of coal by 2040 – well ahead of a previous 2056 target. By then, the government aims to generate 75 GW of renewable energy, reaching climate neutrality by 2050 – a decade earlier than previously pledged.

These are highly ambitious targets for a nation reliant on coal for 67 per cent of power generation, compared to 12 per cent from renewables. Indonesia is the world’s fifth largest operator of coal fuelled electricity and seventh largest emitter of greenhouse gases.

But if the region’s largest economy can overcome barriers to adopting clean energy, could it become a trailblazer for other emerging economies in balancing energy security, economic growth and climate action?

Today, Indonesia’s energy sector requires not only hefty investment, but also radical reform.

These climate targets require an estimated 1.2 trillion USD by 2050 for clean energy generation, storage and transmission as per the Institute for Energy Economics and Financial Analysis.

But despite its vast potential, investment in renewables in Southeast Asia has been scant to date. Funds have poured into Vietnam, with Indonesia lagging, despite its huge potential. For every USD invested in Southeast Asian renewables, another goes into fossil fuels – well above levels of Latin America at 0.2 USD and China at 0.3 USD.

Huge investment is also required to modernise distribution grids and energy storage across the islands to meet growing demand. Many islands and remote communities would benefit from the creation of local microgrids

What are the barriers to renewable investment?

Spread across a huge archipelago of some 17,000 islands, Indonesia faces logistical and political hurdles as well as financial. Renewable energy is often far from where it’s most required by industry.

State owned energy utility Perusahaan Listrik Negara (PLN) holds a monopoly over energy generation, transmission and distribution. While the grid – currently designed around central coal fired stations - needs to modernise, private investment is hampered by PLN’s control of licences even in locations where it doesn’t currently operate, but might do so in the future.

There is also a shortage of renewable procurement possibilities. Industrial consumers could potentially generate their own green power from localised renewables rather than relying upon the centralised grid. But such projects might be dispersed far across the archipelago, and investors are often deterred by small scale, distant projects.

While renewable energy technology has improved and prices have fallen, the cost of financing remains high, partly down to uncertainty over energy policy. This reluctance will continue as long as Indonesia’s existing subsidies on coal and gas continue to influence energy prices.

Huge investment is also required to modernise distribution grids and energy storage across the islands to meet growing demand. Many islands and remote communities would benefit from the creation of local microgrids, but again this is constrained by PLN’s control of operations.

Progress has also been slow from Indonesia’s Just Energy Transition Plan (JETP), unveiled in 2022, which targets 20 billion USD to help Indonesia cut emissions. Although the US has withdrawn as a partner, the remaining nine international partners maintain this won’t hinder commitment, although only a fraction of funds pledged have been disbursed to date.

Policy priorities – how to unlock Indonesia’s renewable energy

Indonesia’s existing subsidies for fossil fuels should be addressed to create a level playing field for renewable energy. Contracts with fossil fuel power plants are too inflexible and could be renegotiated to accelerate the move away from coal.

More efficient and transparent costing for renewables, assisted by improved clean energy auctions would benefit the market. New feasibility studies and the acquisition of land would help improve the pipeline of new renewables projects.

Better mechanisms for international finance and a healthy domestic finance market would help drive investment.

State utility PLN could press ahead with ‘power wheeling’ – allowing private companies to sell renewable electricity directly to corporate customers using state-owned transmission and distribution infrastructure. This could unlock private investment for renewables and accelerate their development, as well as generating income for PLN – access to renewable energy can help attract investment from major global firms.

Positive steps towards innovation

An innovative ‘de-dieselisation’ (or diesel replacement) programme is underway to help Indonesia’s islands shift to renewables - some 2,000 islands currently rely upon diesel or have no energy supply. Since 2022, PLN has begun replacing more than 5,000 diesel power plants with renewable energy with the aim of bringing reliable cheap and clean power to communities. A first wave saw solar power installed in 94 locations, enabled by private investment, and future sites will also use biomass and mini-hydro generation. Ultimately the project aims to deliver 265 MW of renewable energy and provide 1.1 million new and improved connections, as well as creating some 350,000 jobs.

Further positive steps have been identified in our 51�Թ�� Business School and IEA ASEAN renewables report, including a JETP supported pledge to accelerate the closure of coal power plants and the announced early closure of a plant in West Java scheduled for this year. New policy initiatives in motion such as the New and Renewable Energy Bill could pave the way for more private investment.

Collaboration among international investors, the Indonesian government and the private sector is critical – but this can’t happen without policies to open Indonesia’s energy sector to competition and level the playing field for renewables, ultimately creating a more diversified energy market.

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