Preparing for Class 8 ("Scaling Purpose-Driven Businesses") and Class 9 ("Investing for People and Planet")
Part of my insider series tracking the conversations in my MBA course "Climate, Sustainability, and Corporate Governance"
For those of you following our progress, we are now entering the 3rd phase of the class, focused on “governing the corporation”. In this section, we will assess the challenges and opportunities of scaling a values-driven business, using the case of Big Spoon Roasters. This nut butter company was started by a husband-and-wife team to provide high-quality food products while upholding rigorous social and environmental practices. The case explores the dilemma of growing this kind of enterprises, when large retailers can powerfully inflect business practices and returns.
We then turn to the case of Norway’s Norges Bank (NBIM). the world’s largest sovereign wealth fund has a global reputation for sophisticated investing strategy, considering the broader social and environmental impacts of their holdings. But many structural features of the bank’s governance shape (and limit) its ability to make bold moves - e.g. being a “universal owner” with exposure across the whole global economy, being governed by a complex hierarchy of Norwegian government entities, and the contradictions of seeking energy transition while funded by Norway’s extensive oil and gas industry.
Here’s how to join along with the conversation:
Class 8: Scaling Values-Driven Businesses
In this session, we will use the Big Spoon Roasters case to explore how small, mission-driven companies scale while staying true to their values. We will examine the strategic and operational tensions that arise when growth creates pressure to compromise on quality, sourcing, or stakeholder commitments. The session will include a field trip to Big Spoon’s HQ in Hillsborough, NC, and a discussion with founders Megan and Mark Overbay, offering firsthand perspectives on balancing purpose, profitability, and long-term brand integrity.
Abridged Case Study: Big Spoon Roasters: Scaling a Values-Driven Food Business
Associated Readings
Chhabra, E. Why One Mission-Driven Food Business Is Forgoing Big Grocery. Forbes.com.
Profiles Big Spoon Roasters’ decision to resist mainstream grocery distribution in order to preserve its mission and values. This article highlights the trade-offs small, purpose-driven companies face in scaling.
Kim, S & Schifeling, T. The Paradox of Growing as a Values-Driven Company. Harvard Business Review.
Examines why growth can undermine the very values that give mission-driven firms their competitive edge. This piece provides a strategic framework for navigating purpose and performance tensions.
Doctorow, C. (2024, April 4). Too big to care. Enshittification is a choice. Medium.com.
Argues that companies often degrade their products and values as they scale, not because it’s inevitable but because of strategic choices. This reading broadens the discussion of mission drift beyond food to digital platforms and other industries.
Class 9 - Investing for People and Planet
In this session, we will use the Norges Bank Investment Management case to examine how the world’s largest sovereign wealth fund integrates climate risk and ESG principles into its investment strategy. We will explore the fund’s governance model, responsible investment framework, and approach to balancing long-term returns with systemic sustainability challenges. Additionally, we will host Professor Fern Wickson of the University of Tromsø in Norway, who will describe her work on enabling transformative change for biodiversity.
Abridged Case Study: Norges Bank IM and the Politics of Sustainable Capital
Associated Readings
Skjeseth, H. T. (2025, June 12). How sparsely populated Norway amassed $1.8 trillion. Bloomberg.
Explains how Norway built the world’s largest sovereign wealth fund from oil revenues, highlighting its scale, purpose, and global influence. This piece provides essential background for understanding Norges Bank Investment Management (NBIM).
Mundy, S. (2025, May 28). How the world’s largest wealth fund looks at climate risk. Financial Times.
Analyzes how NBIM integrates climate risk into its investment strategy, including tensions between financial returns and sustainability leadership. This article illustrates the challenges of aligning capital markets with long-term climate goals.
Skill-builder: ESG Investing: What Every MBA Needs to KnowLinks to an external site.. MBA-EDGE.com.
A practical introduction to environmental, social, and governance (ESG) investing, including frameworks, terminology, and tools. This resource equips you with the basics needed to evaluate funds like NBIM through an ESG lens.
IPBES report: O’Brien, K., et.al. (2025). IPBES Transformative Change Assessment: Summary for Policymakers. Zenodo. Review the document at a high level - we will host a discussion with Fern Wickson, a renowned scholar from University of Tromso (Norway) in class on Friday.
Highlights global pathways for transformative change in response to biodiversity and sustainability crises. This report situates investment decisions within the broader context of planetary-scale risks and opportunities.
Deeper Dive (optional):
Norges Bank IM report (2024): Responsible investment. Read pp. 4-82.
Provides a comprehensive account of how the world’s largest sovereign wealth fund integrates environmental, social, and governance factors into its investment strategy. This report offers students a firsthand view of institutional investor practices, priorities, and challenges in aligning capital with sustainability.
Podcast: Norges Bank’s CEO Nicolai Tangen hosts a popular podcast called “In Good Company”, featuring conversations with some of the banks biggest investments. See his guest list here and listen to 1 podcast on a company or speaker that interests you.