The Thomas K. Montag Sustainable Finance Fellowship Fund in sustainable finance has been established at Northwestern Kellogg, thanks to a joint $2 million grant. The fellowship is aimed to introduce sustainable finance leaders to Kellogg students and faculty through programs such as conferences, discussions, and research.

What exactly is sustainable finance, and why is it so crucial? 

Making investment decisions that incorporate financial returns and environmental, social, and governance aspects is part of sustainable finance. It's a broad term with numerous definitions depending on the context, and it's sometimes used interchangeably with "green finance." Sustainable financing also yields higher profits. In addition to benefiting the environment and making society more equitable and inclusive, sustainable enterprises are increasingly showing to deliver superior returns to investors. Companies that implement sustainable business practices are becoming stronger stock market options.

Tom Montag (MBA '82) and Janet M. Montag, as well as the Bank of America Charitable Foundation, each contributed $1 million to Kellogg. "Kellogg develops leaders for the future, and sustainable finance will become more important as global corporations prioritize addressing tomorrow's concerns today." "From restoring rivers to helping firms achieve net-zero, Bank of America, Janet, and I are devoted to sustainability, and this fellowship brings that commitment to life," said Tom, who joined the board of trustees in 2019. He was Bank of America's chief operating officer from 2014 to December 2021, when he retired.

"Anyone who knows Tom knows he is a force of nature," Francesca Cornelli, Kellogg's dean and Donald P. Jacobs Chair of Finance, stated. "For a long time, he has been a leader in the financial and banking sectors, always able to go forward and not hesitant to try new things. It's no wonder, then, that he's been a long-time proponent of sustainable finance. Kellogg expresses his opinion that the financial industry is critical to furthering sustainability in a significant way. This generous gift will substantially impact sustainable finance research and education. We at Kellogg are ecstatic to honour Tom's remarkable achievements and forward-thinking approach." The new fellowship strengthens Kellogg's commitment to long-term sustainability.

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Winding-up

Finance teams are a valuable asset to their companies and critical in creating a more sustainable future. Businesses must be able to perceive and act on the risks and possibilities connected with sustainability to realize this potential. If this isn't done, the finance function might be a roadblock to change. Finance teams are highly effective in a company because they control the money and financial flows that are vital to the organization's ability to do what it does. They supply critical information for decision-making and persuade others to take action.