Student Profile: Business and Environment

Ron Hertshten '08
Co-Leader of Yale School of Management Green Campus Initiative Summer Internship: G.H. Holdings, London Office

I love traveling and the outdoors. Before coming to SOM I did a five-month backpacking trip around Australia and New Zealand. One of the things that really struck me in going to those two countries is the difference between the two in the way they treat the environment. Regulations are very tight in New Zealand. The Department of Conservation in New Zealand is everywhere. Treks are very organized. You buy passes for the number of nights you're on the trek, so they can regulate how many people are on the trek at a certain time. Whereas in Australia, you just lay your tent wherever you feel like it. There's also a much higher awareness about environmental issues in New Zealand; whereas, in Australia, it's not much talked about.

I've lived in Israel. I've lived in England. I've traveled all around South America and Asia. Some societies regard the environment very highly, and others, at this point, don’t see the importance of it.

We had the CEO of the Chicago Climate Exchange come in and talk to us not long ago. Their whole business model is built on the fact that there will be carbon regulation at some point in the future. Even though their current market cap is $1.5 billion, they're posting losses every year so far. That will change once there is stricter carbon regulation in place. Certain companies are also going to be able to take advantage of it by trading credits that they've gained already. So, regulation isn't necessarily prohibiting business. It just changes the rules of the game a little bit. In fact, regulation can even create business opportunities. If you see the opportunity, you can seize it, but you can also do it in a manner that enhances what the regulations are there to protect.

I was a futures trader before coming to SOM, and I want to combine my finance knowledge with my interest in energy and the environment. At the end of the day, what I want to get out of business school is to be able to construct a business that will enhance me economically, and will do so in a manner that is beneficial to the environment. It's pretty easy to go one way or the other, but it's a lot harder to combine the two.

What makes Yale SOM such a great experience for me is that there's a bunch of us here who are all approaching the same issues of environment and energy from different perspectives. Some are getting into architecture and design, or Brownfield development, or even nonprofit education agencies. Some are getting into it through renewable energy perspectives. Some are getting into it from a CSR perspective. So you have this whole group of people who are attacking the area from different directions. And it really gives you a lot of insight and gives you a lot of connections for the future.

Interviewed on May 1, 2007.