Declan Rounce

Blog excerpt · 2021 · Promoting a socially conscious business simulation for college professors

Recently, small hedge-fund manager Christopher James spearheaded a campaign, backed by an alliance of investors, to appoint three handpicked, socially responsible board members to ExxonMobil – and succeeded. His story of how he came to form an activist hedge fund, Engine 1, demands the attention of professors and business leaders.

Mr. James, an environmentalist, was having dinner with his two sons in 2019, when they asked him how he could consider himself an environmentalist while investing in oil companies. Mr. James had previously operated a coal mine and built storage facilities for oil and gas companies, but outside of work, he dedicated his time to conservation issues. Nevertheless, he struggled to justify his positions to his kids, who had been discussing climate change in school. Shortly after, he founded the investment firm Engine 1 and challenged ExxonMobil to reduce carbon emissions and take sustainability more seriously.

His story will become increasingly common as the current and next generations of students become increasingly passionate about sustainability, social justice, and equality. Business professors will have to answer questions from students taking conservation science and sociology electives, and those with outdated course material may struggle to respond. SABRE 3P offers the solution. 3P is the only business simulation that balances the need for corporate profit with what society is demanding of businesses today. The simulation develops socially responsible leaders who are ready to take on the triple bottom line challenge – People, Planet, Profit.

Critically, the firm persuaded BlackRock Inc., Vanguard Group, and State Street Global Advisors to support its campaign and vote to appoint the new board members. The backing of these investment giants, who control over 20% of Exxon shares, validates Engine 1's thesis – that social responsibility is no longer just a moral obligation for corporations, but a powerful driver of shareholder value and confidence. SABRE 3P is our state-of-the-art business simulation that's designed with the same thesis in mind.

"The energy industry and the world are changing. To protect and enhance value for shareholders, we believe ExxonMobil must change as well. We believe that for ExxonMobil to avoid the fate of other once-iconic American companies, it must better position itself for long-term, sustainable value creation." — Engine 1