University at Buffalo School of Management

Spring 2025 Buffalo Business 11 earn revenues from fossil fuel, as part of measurable steps UB is taking to achieve climate neutrality by 2030. Tiu also co-authored a study that examined the costs and benefits of socially responsible investment poli- cies on university endowment funds, which was high- lighted on the U.N.-supported Principles for Responsible Investment blog. "Our findings show that even if this strategy is a net zero for the investment portfolio, it is ultimately a plus for the university," he says. "Adopting ESG principles in investment decisions can increase donations, student applications and grant funding." The research also shows that universities that adopt ESG principles oen do so based on stakeholder pressure. At Wendel, Pietkiewicz has seen the effect public support can have on climate change. "Many prospective college students have grown up in a world hearing about sustainability and climate change as problems they want to impact," he says. "National data shows that in a competitive college enrollment market, students are choosing universities based on their commit- ment to climate action." Innovation fueled by data and revenue pressures For Michelle Morand, BS '11, private equity investor at Goldman Sachs, data is the main catalyst for innovation. "When tracking a portfolio company's operational data, we can see when revenue and expense lines are impacted by changing weather patterns. By analyz- ing various key performance indicators, we get a clear picture of where the pockets of opportunity are and where innovation needs to happen to improve margins," she says. "Companies leverage data analytics to identify areas where revenue can be enhanced or expenses mini- mized and to uncover new market opportunities." Morand says unseasonal weather patterns due to climate change can lead to mismatches between inven- tory and consumer demand. "Imagine walking into a store in New York City during a warmer- than-usual winter and seeing shelves full of coats and hats that no one is buying. These inventory orders were placed two or three years in advance, in anticipation of weather patterns and a winter season that would last three or four months. With unseason- ably warmer weather during the winter, lower sales translate into lost revenue," she says. "Recognizing these trends uncovered by data allows busi- nesses to become resilient, adapt their product offerings and supply chains and, in turn, remain sustainable in the long run. Data allows businesses to become resilient and sustainable revenue generators." Aditya Vedantam, associate professor of operations manage- ment and strategy, sees compa- nies building climate concerns into their products. For example, Zillow recently began introducing climate risk data into its listing pages to provide home shoppers with insights into five key risks: flood, wildfire, wind, heat and air quality. The new feature will include risk scores, interac- tive maps and insurance requirements. "Businesses are adapting to meet evolving demands, particularly from sustainability-focused Gen Z custom- ers," he says. "Retailers are leveraging consumer data to find new ways to sell their products. Since many Gen Z shoppers prefer to buy used apparel, it makes sense for retailers to enter the secondhand market and adopt a strat- egy to maximize profits and minimize climate impact." By analyzing various key performance indicators, we get a clear picture of where the pockets of opportunity are and where innovation needs to happen to improve margins. MICHELLE MORAND, BS '11 PRIVATE EQUITY INVESTOR GOLDMAN SACHS Morand Vedantam

• Cover