In a world where the economic cost of climate inaction is mounting by the day, London Business School‘s Wheeler Institute for Business and Growth is positioning itself at the center of a crucial debate: how can business be harnessed to address the planet’s most pressing environmental challenges? Through its climate initiative, the Institute is convening academics, policymakers and industry leaders to scrutinise the role of markets, finance and innovation in driving a just transition to a low‑carbon economy. From emerging research on climate risk in developing countries to new teaching that redefines what it means to be a responsible manager, the Wheeler Institute is using the tools of business scholarship to confront a crisis that no sector can afford to ignore.
Expanding the Wheeler Institute climate agenda How London Business School leverages research and teaching for global impact
At the heart of London Business School’s climate journey is a deliberate effort to turn cutting-edge scholarship into practical levers for change in boardrooms, ministries and fast-growing ventures. Faculty across finance, strategy, operations and organizational behavior are building a shared evidence base on topics such as carbon pricing, green innovation incentives and climate-risk disclosure, and then translating those insights into accessible learning experiences. Through action-oriented case studies, scenario-based simulations and field-focused projects, participants are challenged to test climate solutions in real markets rather than treat sustainability as an abstract add-on.
This ecosystem approach is reinforced through a portfolio of initiatives that connects research outputs with teaching and policy dialog:
- Cross-disciplinary research labs pairing climate scientists with economists and data experts.
- Executive education sprints for leaders in high-emitting sectors.
- Student-led investment funds piloting climate-positive capital allocation.
- Policy roundtables convening regulators, multilateral agencies and business leaders.
| Focus Area | Primary Outcome | Global Reach |
|---|---|---|
| Climate Finance | New risk models for investors | Asset owners on 4 continents |
| Emerging Markets | Scalable low-carbon ventures | Projects in Africa & South Asia |
| Leadership & Governance | Board-ready climate literacy | Alumni in 100+ countries |
Inside the partnerships driving change Corporate coalitions and policy collaborations shaping climate solutions
From boardrooms to negotiation rooms,the climate initiative convenes unlikely allies: multinationals,development banks,regulators,and fast-scaling innovators that rarely share the same agenda,yet increasingly share the same risks. By curating evidence from faculty research and field experiments, the initiative translates complex insights into actionable coalitions that can influence supply chains, capital flows, and national strategies.These collaborations are less about glossy pledges and more about testing what actually works: how carbon prices shift investment, how disclosure rules alter corporate behaviour, and how blended finance can unlock projects that traditional markets overlook.Within this ecosystem, London Business School acts as a neutral, data-driven broker, enabling senior leaders to experiment with climate solutions before they are rolled out at scale.
The most effective alliances emerging around the initiative share three characteristics: they move money, they change rules, and they build local capacity. In practice, this translates into:
- Corporate alliances that pilot low-carbon business models in emerging markets.
- Policy taskforces that stress-test regulation against real-world business constraints.
- Investor-academia platforms that integrate climate risk into valuation and credit decisions.
| Coalition Type | Key Focus | Climate Outcome |
|---|---|---|
| Corporate-NGO Hub | Decarbonising supply chains | Lower embedded emissions |
| Policy Lab Network | Testing green regulation | Faster,smarter rules |
| Finance Innovation Group | Blended climate capital | Scaled clean projects |
Financing a just transition Innovative investment models to scale low carbon growth in emerging markets
New financial architectures are emerging that blend public,private and philanthropic capital to de-risk climate investment in fast-growing economies. Blended finance facilities,first-loss guarantees and outcome-based instruments are being used to channel capital into sectors that are both high-emitting and job-intensive,such as transport,construction and manufacturing. These models are designed to correct market failures by pricing in social and environmental value, while still offering competitive returns. They hinge on three levers: risk-sharing, local currency solutions, and patient capital aligned with long-term transition pathways.
- Concessional layers that crowd in commercial lenders
- Revenue-backed structures tied to clean infrastructure performance
- SME climate funds targeting suppliers and informal enterprises
- Community co-ownership to anchor local support and resilience
| Model | Primary Focus | Transition Benefit |
|---|---|---|
| Green securitisation | Aggregating small clean-energy loans | Scales rooftop and off-grid systems |
| Just transition bonds | Worker reskilling and local jobs | Reduces social friction of decarbonisation |
| Climate impact funds | Early-stage low-carbon ventures | Accelerates innovation in frontier markets |
From classroom to climate action Equipping the next generation of leaders with practical tools and measurable goals
Inside the lecture halls, climate science, finance and policy are no longer taught in isolation; they converge in projects that demand real-world decisions under real-world constraints. Students build transition plans for listed companies,redesign supply chains for net-zero targets,and simulate negotiations between governments,investors and communities.Workshops move beyond theory to focus on execution, with faculty and practitioners co-designing sprints around:
- Impact diagnostics – mapping emissions, risks and social outcomes
- Scenario modelling – testing pathways under diverse climate futures
- Capital allocation – structuring green investments and blended finance
- Policy navigation – aligning business strategy with evolving regulation
To ensure ambition translates into trackable progress, participants commit to clear metrics that can be monitored over time, both in their coursework and in the organisations they go on to lead. Each cohort leaves with a personalised implementation canvas that aligns values with verifiable outcomes, including targets such as emissions reduction, innovation pipelines and stakeholder engagement. These are captured in simple, comparable scorecards:
| Focus Area | 12-Month Goal | Key Metric |
|---|---|---|
| Corporate Strategy | Embed climate risk in board decisions | 100% major projects with climate review |
| Operations | Cut scope 1 & 2 emissions | −15% vs.baseline |
| Innovation | Launch green business pilots | 3 pilots reaching market test |
| Community | Scale local climate partnerships | 2 active cross-sector projects |
Key Takeaways
As the climate crisis accelerates, the Wheeler Institute’s initiative at London Business School underscores a critical shift: climate action is no longer the domain of scientists and policymakers alone, but a core concern for business leaders and investors. By embedding climate risk,opportunity and responsibility into the language of markets and management,the Institute is reframing what it means to create value in the 21st century.
Its work is still in its early chapters, but the direction is clear.Through data-driven research, collaborations that cross borders and disciplines, and a growing community of students and alumni, the Wheeler Institute is positioning LBS not just as a commentator on the climate transition, but as an active participant in shaping it.
Whether this model of climate-engaged business education becomes the norm will depend on how quickly others follow. For now, the Wheeler Institute offers a glimpse of what a business school can look like when climate is treated not as a niche concern, but as the defining context for every strategic decision.
