I recently sat down with Julia Zhou, co-founder of Tidal Impact, and President of Sigma Squared Society.Julia grew up in an entrepreneurial family, which sparked her passion for making a real difference. She channeled that drive into co-founding Tidal Impact, aiming to help companies not just reduce harm but actively create positive change.
During our chat, she explained the key difference between ESG and impact. ESG focuses on reducing negative effects, while impact pushes businesses to create meaningful, positive outcomes. This shift, Julia pointed out, is crucial for any company wanting to drive real change.
Julia sees startups as uniquely positioned to lead the push toward a more sustainable and conscious economy. Startups tend to be more nimble and open to risk, which allows them to adopt sustainable practices faster than larger companies. Of course, driving change isn’t easy. It requires action at all levels—from individuals to organizations to governments. Julia didn’t mince words: “We all have a role to play, and no one can do it alone.”
Julia challenged the traditional idea of success. She argued it’s time to look beyond financial metrics and measure success by the positive impact a company has on society and the environment. According to her, this mindset shift is essential if we want to build a more equitable and sustainable world.
Julia also highlighted the work of Sigma Square Society, an organization dedicated to fostering connections between young entrepreneurs. Their annual summit brings together startups working on innovations ranging from hydrogen-powered aircraft to breakthrough ed-tech solutions. These companies aren’t just pushing the limits of technology—they’re leading systemic change that could reshape entire industries.
She didn’t stop there. Julia stressed how personal awareness and emotional intelligence play a key role in driving real change. She described a visual she once used in a speech: concentric circles, with self-awareness at the core and system design around it. This image captures how personal growth and systemic change are deeply interconnected.
When it comes to measuring impact, Julia made it clear: organizations need a “theory of change.” This framework helps businesses focus on long-term goals and understand the steps required to achieve them. “A theory of change works like a North Star,” she said. It keeps businesses on track and ensures their actions align with their overall mission.
Julia also discussed how impact investing is evolving. She pointed out that different businesses need different types of funding. Not every impact-driven company fits the traditional venture capital model—some need patient capital or grants to truly thrive.
Julia’s advice to entrepreneurs? Know your “why.” She stressed the importance of understanding your motivations and aligning your business goals with your personal values. “Ask yourself: why are you really doing this? Once you figure that out, everything else falls into place.”
Julia’s insights provide a powerful roadmap for anyone looking to make a meaningful impact. From understanding the distinction between ESG and impact to redefining success and building a regenerative economy, her advice is invaluable for entrepreneurs committed to creating real change.
"Ask yourself: why are you really doing this? Once you figure that out, everything else falls into place."
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