Twelve teams of graduate students are named as finalists in the 2019 Kellogg-Morgan Stanley Sustainable Investing Challenge.
Each year, Northwestern University’s Kellogg School of Management and Morgan Stanley's Institute for Sustainable Investing invite graduate students from around the world to submit ideas for innovative financing and investment vehicles that help address critical environmental, social and governance issues.
Now in its ninth year, the Kellogg-Morgan Stanley Sustainable Investing Challenge invites teams of graduate students to propose a creative financial solution that helps address one or more of these issues, while aiming to provide competitive market returns to private-sector investors.
This year, 109 teams from around the world submitted proposals that seek to improve everything from plastics recycling in Vietnam to economic inclusion for transgender people in India. Twelve finalist teams have been chosen to present their ideas at Morgan Stanley’s Hong Kong offices on April 12th, and the winning team will receive $10,000.
This year’s competition drew more interest than ever: A total of 365 students from 80 graduate schools submitted investment prospectuses targeting sustainability and impact challenges in 31 countries. The growth in overall proposals submitted and the breadth of the problems they aim to address underscores that a new generation of investment leaders view finance as a critical tool for helping solve global challenges.
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First round judges weighed each proposal on its merits
and selected these 12 finalist teams:
CSRi: A Fixed-Income Pay-for-Impact Fund
Proposal: Pay-for-impact fixed income fund designed to help corporations enhance measurable impact of corporate sustainability.
School: New York University, Stern School of Business; New York University, Wagner School of Public Service
DoubleUp ADU-Backed Securities
Proposal: Collateralized debt obligation that aims to help unlock liquidity for the construction of accessory dwelling units(ADUs), increasing availability of affordable housing in tight real estate markets.
School: University of California Berkeley, Haas School of Business; University of California Berkeley, College of Environmental Design; Columbia University, Columbia Business School
Fund for the Rehabilitation of Australian Mines and Environment (FRAME)
Proposal: Up-front financing of mine sites to decrease risk of process and economic disruption, and help ensure environmental remediation.
School: University of Chicago, Booth School of Business
Grey to Green Fund (G2G)
Proposal: Multi-asset fund seeking to help reduce water consumption by acting as a market aggregator for hotel greywater infrastructure.
School: Johns Hopkins University, School of Advanced International Studies; Columbia University, School of International and Public Affairs; Duke University, Nicholas School of the Environment; Massachusetts Institute of Technology, School of Humanities Arts and Social Sciences
Humana Support Bank
Proposal: Micro-credit to help support the integration of Venezuelan refugees into the Colombian economy through job growth.
School: ESADE Business School
Indian Smart Solar Muni+ Fund
Proposal: Levered private equity fund designed to help improve air quality and increase renewable energy use by bundling municipal debt earmarked for solar projects.
School: Tufts University, The Fletcher School of Law and Diplomacy
Omega: Combat Climate Change with Bayannur
Proposal: Tax equity and convertible debt to help support improved air quality through investments in biofuel plants.
School: Peking University, HSBC Business School
Sort it Out Recycling Fund
Proposal: Revolving loan fund providing supply chain financing to help grow China’s circular economy.
School: Yale University, School of Forestry and Environmental Studies; Yale University, School of Management
Sustainable Livelihoods Opportunity Fund
Proposal: Galvanizing opportunity zone investments to help bring sustainable forest products manufacturing to rural communities.
School: University of California Berkeley, Haas School of Business
The Carbon Yield Fund
Proposal: Debt financing to help provide farmers advance access to capital generated through carbon credits and bridge access to organic marketplace returns.
School: Northwestern University, Kellogg School of Management
The Krishak Development Fund
Proposal: Infrastructure fund directing investments to reservoir projects to help increase crop yields and improve rural farmer’s income.
School: Singapore Management University
Utility Wildfire Resilience Bonds
Proposal: Outcome-based securities for microgrid development in wildfire-prone areas to help limit impact of power outages and enable de-energization.
School: University of California Los Angeles, Anderson School of Management; University of California Los Angeles, Institute of the Environment and Sustainability