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Thriving Communities.

Resilient Businesses.

Joey Krikorian

Amardeep Singh

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COMMUNITIES AT

A

GLANCE

At the heart of the issue

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149.7 %

28-40%

30-33%

Business closures in Ontario in April 2020 (39,463) compared to 2019 (15,804)

Small businesses that requested credit from a financial institution in Canada

(1 to 4 employees: 28.1%, 5 to 19 employees: 40%, 20 to 99 employees: 30.5%)

Small Businesses has remained partially operational in Canada

(1 to 4 employees: 31.2%, 5 to 19 employees: 30.3%, 20 to 99 employees: 33.2%)

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$1.5 trillion losses

Above 10.8 million

$30 trillion

In GDP for North America for the next five years

Green SMEs under threat of closures

In government deficits till 2023

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MICRO-FINANCING

AND

MICRO-INVESTMENTS

Getting Money Where It’s Needed

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What is Aesir?

Aesir is a ESG scoring application for smaller businesses in a community that grades businesses based on how ‘green’ they are, for a chance to receive sizable donations or micro-investments from eco-investors.
Currently, most micro-investing applications lack such capabilities. Competitors are limited but exist in the form of platforms like Robinhood and Morning Star.
In its beta, Aesir would be used as a marketplace for eco investors and with enough monitoring, can even be used for exchanging carbon credits among SMEs.

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STAKEHOLDERS

Micro-investors

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Small Businesses

Environmentalists

Banks/Money Lenders

Governance

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APPLICATION PIPELINE

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MSCI ESG Ratings

Definition:

An MSCI ESG Rating is designed to measure a company’s resilience to long-term, industry material environmental, social and governance (ESG) risks.

Setting Key Issue Weights

Once the Key Issues have been selected for a industry, weights that determine each Key Issue’s contribution to the overall rating is set. Each Key Issue typically comprises 5-30% of the total ESG Rating. The weightings take into account both the contribution of the industry, relative to all other industries, to the negative or positive impact on the environment or society; and the timeline within which we expect that risk or opportunity for companies in the industry to materialize.

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ESG Ratings Key Issue Framework

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BUILDING

THE

SOLUTION

Finances, Time and Resources

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The beta application will take an initial investment of 55 to 57 thousand, factoring in marketing, automated LCA analysis, marketplace development, finance approvals and legal assistance.

The team will be comprised of software engineers, environmental analysts, finance majors, accountants, marketing agents and legal liaisons.

Developing a beta version for the application and gaining a sizeable number of SMEs is estimated to take 15 to 21 months.

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TIMELINE FOR DEVELOPMENT

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June 2024

Team Creation and Model Development

Communication with banks, lenders, government officials and ESG groups

March 2024

September 2024

Company surveying, marketing and initial UI, API development

March 2025

Front end finalization, backend tests and beta release to both investors and SMEs.

December 2025

Review of ESG monitoring techniques, portfolio management, alpha release and updates

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APPLICATION UI

SNAPSHOTS

Interfacing and Communication

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Impact assessment - Why small businesses should incorporate ESG

Creating Value by integrating ESG issues into long-term strategies and leading ESG initiatives

Smaller public companies should consider assessing their day-to-day operations by identifying ESG areas that are likely to have the greatest financial impact on the company in the long-term.
To question: Does being proactive on environmental and social issues reduce costs for compliance with future regulations?

Companies can then focus on the ESG areas that are important to their operations and financing, making impactful adjustments and integrating them into its long-term strategy.

Source: Smaller Public Companies and ESG by Jurgita Ashley, Thompson Hine LLP

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Impact assessment - Why small businesses should incorporate ESG

With climate change effects becoming predominant and taking a more active role in risk assessments for analysts in the future, there exists a gap in the ESG market between larger groups and SMEs.
Aesir can act as the bridge for SMEs to remain relevant in a environmental centered market and allow companies to avail the benefits of a wider exposure to eco-investors.
This can play a role in offering some incentives for all parties involved and help government organizations to monitor the impact of smaller industries and groups.

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Why us?

Attract investors from microfinance firms

According to PwC research, 65% of investors said that their motive for taking ESG issues into consideration was to help manage investment risks. By reporting on ESG performance improvements, companies send a signal to investors that they can mitigate risks and generate sustainable long-term financial returns.

Improve small businesses’ performance and promote sustainability in long term

Alongside investors, millennial and Gen Z consumers are a significant driver for ESG reporting. According to Bank of America, 92% of Gen Z consumers would switch to a brand that supports ESG issues versus one that does not.

Lack of standard competitors and the success of ESG(green) centric financial applications in Europe, place Aesir at a great advantage to be unique and ground breaking.

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THANKS!

Any questions?

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References