The Floristics Have to Be Right

My career in banking and finance and surprisingly, what working in conservation taught me about financial markets.

In this WiBF interview, Virginia Malley (Chair, Non Executive Director) reflects on a career spanning more than three decades in banking and finance, her unexpected move into environmental conservation, and what working in conservation markets taught her about financial markets.

I started my career in financial services more than three decades ago. Looking back, the career I’ve had would have been difficult to imagine when I first entered the industry in the 1980s.

My first role was as a credit analyst at Dun & Bradstreet, where I learned how credit ratings helped businesses access trade credit. It was an introduction to the importance of financial transparency, reliable data and trust, as well as the fundamentals of financial statement analysis.

As Australia’s banking sector modernised and the Australian dollar floated, new opportunities emerged. I moved to Macquarie Bank as a Treasury credit analyst, where I experienced an environment full of energy, creativity and ambition, balanced by a strong focus on risk discipline.

I learned about swaps and options, domestic money markets and foreign exchange, and saw first-hand how quickly markets could grow and change. After postgraduate studies in finance, I specialised in risk management, an area that became increasingly important as markets evolved and volatility created new challenges.

Over 20 years at Macquarie, I held a range of roles, including Chief Risk Officer at Macquarie Funds Management in 2003, overseeing risk management across AUD $85 billion in funds under management.

Eventually, I wanted to spend more time with my family and explore a different career path. I began considering non-executive roles and, at the same time, enrolled in postgraduate law studies. What was I thinking!?

My legal studies at UTS introduced me to Climate Change Law and opened doors to board opportunities in the environmental sector. These included roles with the Clean Energy Regulator and as Deputy Chair of the NSW Biodiversity Conservation Trust.

Both organisations offered the opportunity to help shape strategy, contribute to important environmental outcomes and learn about complex, evolving markets.

And, to my surprise, working in innovative conservation and clean energy markets taught me more about financial markets than the other way around.

When markets can solve environmental problems

I became fascinated by how financial mechanisms could help address environmental challenges. Governments can influence markets by increasing demand for green commodities or reducing the supply of activities that harm the environment.

In the 1990’s, the US government acted to reduce the problem of acid rain, a corrosive rain created from nitrous oxide and sulfur dioxide. Acid rain visibly corroded metal, paint, stone, buildings, bridges and monuments. The duco on cars got corroded if you can believe that.

However a cleverly designed ‘compliance market’ made the production of those chemicals uncommercial and the problem of acid rain was solved. A similar compliance market successfully reduced the production of ozone layer-depleting fluorocarbons from the late 1980’s onward.

Markets solved everything!

My time at the NSW Biodiversity Conservation Trust (BCT) and Clean Energy Regulator showed me how science, complex financial solutions and legal instruments could come together to benefit regional communities and the environment.

BCT works with private landholders to protect and manage some of the state’s most important biodiversity. Through permanent conservation agreements and innovative financial arrangements, it helps landholders care for habitat and threatened species, forever.

Financing arrangements and fund management oversight provide sustainable funding for conservation land management. Supported by ecological monitoring, this also allows BCT to demonstrate its impact and the counterfactual.

Impressively, over 620,000 hectares of our most important conservation areas have already been permanently protected.

I recognised many of the same disciplines I knew from finance: sound evidence, careful risk assessment, achieving the greatest return on investment, building trusted relationships and creating an offer that works for customers. In this case, the customers are landholders.

One of the most exciting aspects of BCT’s work is the role philanthropy can play alongside government funding. I am proud to be a donor and help scale its work. As demand from private landholders to protect high-value conservation assets grows, so does the opportunity for philanthropy.

I urge anyone who loves nature to get involved and donate. It will mean more landholders supported, more valuable habitat protected, and conservation gains that will last forever.

In finance, I learnt how much becomes possible when capital is directed towards a sound opportunity. At BCT, I see the same principle put to work for nature.

The importance of getting the fundamentals right

One of the most interesting lessons I learnt at BCT is that you can’t seek expressions of interest from landholders unless the ‘floristics are right’.

Timing is everything. You need to go to market when conditions are flourishing, not when they’re subdued.

You also need strong relationships with capital providers, institutional and technical credibility, an attractive financial offering and a disciplined approach to buying. These are the same factors that drive success in financial markets.

For these reasons, the NSW Biodiversity Conservation Trust’s offerings have been oversubscribed since its inception. If only we had the same track record of success in financial markets!

At WiBF, we’re proud to share the experiences, insights and perspectives of professionals shaping the future of banking and finance. Stories like Virginia’s highlight the diverse career paths and unexpected lessons that continue to shape our industry.

Stay connected with WiBF for more industry insights, career stories and opportunities to learn from the people making a difference across banking and finance.