The Triple Bottom Line

Now more than ever businesses are aware that they have a responsibility to positively influence the environment and society, while remaining financially viable. Maintaining this balance is no easy feat; however, for current Primary School parent and Chartered Accountant, Julie Vasadi, helping companies succeed in achieving their Environmental, Social and Governance (ESG) goals is a challenge she thrives on!

As Head of ESG Transaction Services at KPMG Australia, what does your role entail?

I work with companies (like superannuation funds or private equity firms) who are looking to buy or sell a company and help them identify ESG risks which could stop the deal from going ahead, for example, breaches of environmental licences or human rights abuses in the supply chain, as well as opportunities to create value or financial upside such as savings from carbon reduction initiatives and benefits from introducing circular economy principles .

Was a career with a focus on the environment something you were always interested in pursuing?

My environmental awareness and activism have grown stronger as I’ve grown older particularly since having children and is of course aligned with the increasing urgency of our climate crisis . I have always had a strong sense of purpose and as a Chartered Accountant, I could see that there would come a time where good environmental management, and more broadly ESG management, would make good financial and economic sense I’m very pleased that the financial sector now sees the economic value of being good environmental stewards

How important is ESG to the triple bottom line of companies today?

Management of ESG is critical to a company’s long-term viability . Investors are willing to pay more for companies that have strong ESG performance aligned with their own ESG priorities

Equally, investors are walking away from companies who aren’t able to prove they are managing ESG effectively as the reputational risks are too high .

Banks and finance providers are using ESG considerations to screen their customers and are requiring ESG performance to be included in their conditions of lending

Customers are also increasingly expecting the companies they buy from to be operating responsibly and they are putting their money where their mouth is through their purchasing decisions .

Furthermore, companies also need to earn the trust of the communities in which they operate to maintain their social licence to operate and so ESG is critically important to local communities, as we saw with the fallout of Rio Tinto legally destroying the 46,000-year-old

Juukan Gorge sacred rock shelter in Western Australia

Organisations must also operate ethically and transparently about their ESG targets and not fall into the trap of “greenwashing”, that is, providing false or misleading information to the public about their sustainability efforts

Unfortunately, greenwashing is now rife and regulators are actively focused on cracking down on this misconduct

Two weeks ago, at the time of writing, ASIC have taken a company to court alleging greenwashing for the first time .

What has been your greatest career achievement to date?

I love the scale of the impact I am making through my work As an individual, I can make my own environmental contribution by buying renewable energy or recycling, but through my work I have a platform to influence some of the largest companies on the planet I love it when I can shift their thinking and influence their business strategies and decision-making to achieve a better ESG outcome

That’s a really powerful thing!

What three tips would you give your younger self about pursuing a career in sustainability and finance?

1 Trust your gut, take some risks and play the long game – there’s no right or wrong way to go about it . Everyone comes to this space from different perspectives (e g , engineering, finance, science, communications, policy, etc .) .

2 Don’t be afraid to change roles or specialisations The landscape is constantly changing and no knowledge or study is wasted They bring a new perspective and diversity of thought is a strength in this space

3 Innovation and creativity are literally going to save the world . Just back yourself and go for it!