The Kellogg-Morgan Stanley Sustainable Investing Challenge 2025

Every year, the Kellogg-Morgan Stanley Sustainable Investing Challenge invites teams of graduate students from around the world to develop and pitch creative financial approaches to tackle pressing social and environmental challenges.

In 2024, 290 students from 44 countries and 55 schools proposed novel financial instruments for positive impact.

The Challenge facilitates connections with leading industry professionals in order to identify, empower, and inspire those who will make up the future of sustainable finance.

Eligibility

Graduate students from around the world are invited to participate in the Kellogg-Morgan Stanley Sustainable Investing Challenge. Teams are limited to a maximum of four members, all of whom must be enrolled in a graduate program at the time of the prospectus submission, and the team cannot include more than one member who is pursuing an Executive MBA. A team may include members from different graduate schools. All ideas must be the original ideas of the team members. Each team is required to submit a two-page prospectus outlining their proposal. From the submitted prospectuses, ten teams will be selected to present at the finals competition. At least one team member should be available to present at the finals competition, if the team is chosen to advance to that round, and all team members attending the finals competition should plan to stay for the entire event. Please note that any team member not in attendance at the finals competition will not share in any prizes awarded to that team. 

Deliverables

Entry Submission Requirements

Two-page prospectuses must be submitted in February. The prospectus should outline a unique sustainable investment strategy. The selection committee is familiar with the broad area of sustainable investing, so avoid overemphasizing general observations about this section of the market. A list of required elements is below. Take special note of two short videos entitled “Why You Should Participate” and “Expectations for Your Prospectus.” The judging criteria used in this round is the same as that used in the final competition. 

Prospectus Required Elements

• Investment thesis
• Target geography
• Size of addressable market
• Estimate of scalability
• Assumptions
• Risk factors
• Diagram of fund or instrument
• Asset class and capital structure
• Fees and incentives
• Target investor pool(s)
• Fund size
• Investment size and investment criteria
• Due diligence process
• Returns and cash flows (If instrument requires concessionary returns, proposed migration path to achieving market rate returns)
• Time horizon
• Environmental or social impact
• Metrics for social impact

Is this competition open to undergraduate students?

No, only students enrolled in a graduate degree program are eligible to participate in this competition. All students on a team must be graduate students.

Judging Criteria

The following criteria are applicable to both the first and final rounds of the competition:

Creativity & Financial Innovation (25%)

• Has the team proposed an innovative investment vehicle that is designed to drive both returns and impact? We are looking for either:
  • An innovative financial structure or
  • A known investment approach applied creatively to a problem previously outside the scope or reach of a social or environmental challenge
• What’s interesting about this project? Is it just like a dozen others or truly innovative?
• Does the proposal have a unique capital structure, e.g., including different forms of capital, employing diverse types of institutional investors?
• Does the proposal uncover new ways to drive returns, a new asset class, or a new cash flow or value stream?

Impact and scale (25%)

• Does this provide a scalable solution that can mobilize sufficient capital and forge significant environmental or human impact?
• Are there specific metrics for impact? Is the impact real and persistent?
• Does the impact derived from the proposed approach stem from the financial levers rather than ancillary charitable remains?
• Has the team demonstrated diligence in defining and projecting impact to be derived?

Feasibility (25%)

• Does the investment thesis seem plausible?
• Are there real sources of risk-adjusted market rate returns here? (even if considering a gestation period with concessionary returns)
• Could you see institutional investors responding to and funding this?
• Was the thesis thoroughly researched and is there strong evidence of financial depth that incorporates the overall economy?

Quality of due diligence and financials (20%)

• How thorough and deep is the research on the thesis?
• Do the returns and cash flow projections hold water? Has the team demonstrated strong financial logic and validity of key financial assumptions?
• Have the key investment questions relating to returns, asset quality, underwriting, and risk management (both market-based and non-market) been identified and addressed?
• Does the team have the skills needed to execute?  Have they defined the skills needed on the investment team?
• Are the proposed fees and incentives reasonable?

Presentation (5%)

• Has the team been clear, compelling, and concise with their proposal?
• For the final event: Have all team members participated in either the original presentation or Q&A?

2025 Awards

Everyone gets an educational experience, but teams who advance get a lot more too.

All competitors are eligible to participate in a virtual sustainable finance career trek that will feature company presentations, career-focused panels, and networking opportunities.

• Grand Prize: $10,000
• Runner Up: $5,000
• Third Place: $2,500