Stop Thinking ESG is Just Compliance : A Conversation with Stacey Varsani
In the third episode of the Luhn Impact Podcast, host Deeshana Basnayake sat down with Stacey Varsani, a seasoned finance and ESG consultant whose career spans engineering, mergers and acquisitions, and global sustainability advisory. Their discussion explored how companies can move past the view of sustainability as a compliance burden and embrace it as a driver of cost savings, growth, and resilience.
Stacey’s Journey: From Engineering to Finance and ESG
Stacey’s career path began in engineering, but she soon transitioned into finance, joining KPMG and later Intertek, where she managed operations across Southeast Asia and led the global downstream oil and gas business. In 2014, she launched her own consultancy built around four pillars: finance, ESG, supply chain, and sales. Today, her work centers on helping businesses across Asia strengthen operations, adopt international standards, and integrate sustainability into their strategies.
ESG: Beyond Compliance, Toward Value Creation
Many leaders still see ESG as a cost center. Stacey challenges this perspective:
- Efficiency wins – Simple measures like LED lighting, smart air-conditioning, and better building design can deliver 10–30% cost savings.
- Risk management – ESG frameworks help mitigate physical risks (climate events) and transition risks (regulatory changes, shifting consumer expectations).
- Asset protection – High-carbon assets may face write-downs if not managed responsibly, impacting balance sheets directly.
Her point is clear: sustainability is “smart business,” not just good ethics.
The Supply Chain Challenge
As Deeshana emphasized, most emissions lie in Scope 3—the supply chain. Without accurate supplier data, corporations face reporting gaps. Stacey pointed to leaders like IKEA, which helps suppliers secure renewable energy deals, showing how global firms are cascading sustainability demands throughout their value chains.
Governance at the Core
Both Stacey and Deeshana agreed that ESG must begin with governance. Strong governance builds trust, ensures consistent execution, and creates the foundation for positive social and environmental outcomes.
“You may have the best strategies,” Stacey noted, “but without governance, execution will always be an issue.”
ESG as a Growth Engine
Sustainability is no longer just about risk mitigation—it’s also about unlocking growth:
- Investor appeal: ESG is now part of investment criteria. Stacey described a client who was acquired by a sustainability-focused private equity firm, unlocking resources to scale ESG-driven products.
- Customer loyalty & differentiation: Businesses can retain and grow their customer base through credible ESG practices, sometimes justifying premium pricing.
- Talent attraction: Strong ESG strategies help bring in top talent—human resources that remain essential even in an AI-driven age.
The CFO’s Role in ESG
Finance leaders, especially CFOs, play a central role:
- Evaluating ROI-positive initiatives.
- Ensuring credible, reliable data for decision-making.
- Managing ESG as a non-diversifiable risk—one that businesses cannot avoid but must prepare for.
Stacey cited Unilever’s 20-year energy efficiency program, which saved over $1 billion, as proof of how long-term sustainability investments pay off.
A Call to Action
The conversation closed with a strong message: businesses cannot afford to delay ESG. From stabilizing energy costs through EV adoption to capturing 25% savings via efficiency, the opportunities are tangible.
“Sustainability isn’t about creating a new technology to be innovative,” Deeshana concluded. “It’s about rethinking existing businesses by design—ground up, sustainable.”