Sustainability courses are the new MBA. IIMs are taking a cue from market forces

This year IIM Mumbai's two-year MBA programme in sustainability management attracted nearly as many applications as the general MBA course. Other IIMs are also catching up.

Representational image | Facebook @IIM Mumbai

New Delhi: The administration at the Indian Institute of Management (IIM) Mumbai was overwhelmed when it received 2.12 lakh applications for just 30 seats in its sustainability course this year, a dramatic surge from a mere 1,400 applications last year.

Established in 2023, replacing the National Institute for Training in Industrial Engineering (NITIE), IIM Mumbai offers a two-year MBA programme in sustainability management. This year the programme attracted nearly as many applications as the general MBA course, which received 2.6 lakh applications for all of 330 seats.

IIM Mumbai Director Manoj Kumar Tiwari attributes this to the growing demand for sustainability professionals in light of renewed focus on climate change and environmental protection.

“With Environmental, Social, and Governance (ESG) criteria and Sustainable Development Goals (SDGs) being mandated by international organisations, companies are implementing programmes to ensure sustainability. This has resulted in creation of jobs within the sustainability sector, driving up demand,” he told ThePrint.

“For instance, this year, one student secured the highest package of Rs 45 lakh in sustainability, while the average package ranged from Rs 28-30 lakh.”

India aims to achieve net-zero emissions by 2070 and has set ambitious 2030 targets, including 500 GW of non-fossil fuel-based power generation, 50 percent renewable energy integration, and a 45 percent reduction in carbon intensity, all contributing to its Sustainable Development Goals.

It’s not just IIM Mumbai; several other IIMs are also venturing into the sustainability domain. They are increasingly emphasising sustainability and ESG through a variety of initiatives, including full-fledged courses, executive programmes, and electives.

IIM Lucknow offers a two-year postgraduate programme in sustainable management (PGP-SM), while IIM Ahmedabad has introduced a mandatory core course along with electives in sustainability. Similarly, IIM Calcutta launched a one-year executive programme in corporate sustainability last year, while IIM Kozhikode announced a centre for climate studies.

‘Marketing, operations, and more’

Although IIM Mumbai, previously known as NITIE, had been offering a sustainability post-graduation diploma course since 2001, it was transformed into a full-fledged two-year MBA programme after the IIM affiliation, resulting in a significant increase in admissions.

“Initially, the programme struggled to attract students, but its popularity soared after the institute joined the IIM network. India’s initiatives such as the goal of achieving net zero emissions by 2070 has sparked a surge in interest in sustainability-focused courses,” Tiwari said.

Shirish Sangle, professor of sustainable business at IIM Mumbai, explained that the curriculum blends management with sustainability. “In courses like managerial accounting, environmental costing is essential, and sustainability principles must be integrated across all functions—marketing, operations, and more,” he told ThePrint.

In operations, for example, he said, sustainability involves energy-efficient machines with minimal carbon footprints. Workers must also understand the importance of optimal machine speeds for better outcomes and reduced environmental impact.

“A simple example is seen in shipping: adjusting speed and route can minimise fuel consumption and reduce emissions. This concept extends to sectors like trucking, warehouse operations, and finance, where sustainability is incorporated by tracking carbon footprints and resource usage,” Sangle explained.

At IIM Ahmedabad (IIMA), sustainability is integrated at multiple levels in the programme curriculum and across different programmes.

Anish Sugathan, a faculty member in strategy area and chairperson, Centre for Sustainability and Corporate Governance (CSCG), IIMA, said the institute offers a core course on corporate sustainability that every post-graduate programme student must take during the first year of the programme.

“For students interested in pursuing specialisations within sustainability, faculty members at IIMA offer a wide range of electives that cover both the environmental and social dimensions of sustainability. We also have electives that help students understand the policy landscape and instruments prevalent in sustainability decision-making,” he told ThePrint.

In addition, IIMA has a dedicated centre for sustainability and corporate governance, which focuses on applied research projects and building industry-academia bridges. “Students pursue specialised project courses with a sustainability focus, working closely with the Centre faculty member,” Sugathan said.

IIM Calcutta, which is set to start a one-year executive programme in corporate sustainability (EPCS) from August 2025, has said that it will provide students with mechanisms to introduce sustainability as a core principle of everyday business activities, decision-making, strategic vision and long-term growth.

“The programme would attempt to address these complex issues by equipping participants with the necessary skill sets and knowledge about global best-practices to influence their strategic vision so that they can transform their organisations into effective and ethical enablers of sustainability,” the institute said in a statement available on its official website.

Demand is market-driven

IIM Mumbai Director Tiwari said sustainability management programmes are largely driven by market forces.

“Companies that manage natural resources efficiently and address social issues are more likely to create competitive advantages. As more businesses focus on sustainability, the demand for professionals skilled in managing complex, multi-dimensional sustainability challenges continues to grow. Financial institutions, in particular, have been at the forefront of pushing companies toward more sustainable practices by investing in businesses that demonstrate a commitment to sustainability,” he said.

Tiwari emphasised that, with increased customer awareness and pressure from investors, companies are responding by adopting more sustainable practices, realising that this not only benefits the environment but also contributes to long-term business success.

“This shift reflects a broader societal movement toward sustainability, creating more opportunities for students entering the field,” he said.

IIM Lucknow, which has completed a decade of offering its postgraduate programme in sustainable management (PGP-SM), on its website says, “Businesses today are increasingly being driven by sustainability concerns. Results of surveys conducted by many leading consulting and media houses such as Forbes and Fortune indicate that no business can survive in the future without incorporating sustainability principles and practices in its operations.”

“The PGP-SM programme at IIM Lucknow boasts a proven record of success, with a 100 percent placement rate and graduates securing roles in top-tier organisations such as McKinsey, Accenture, and the Big Four, earning an impressive average annual salary of Rs. 30 LPA,” the institute said in a statement.

(Edited by Radifah Kabir)