Kanata Advisors

The Only 4 ESG Slides You Need! Here are four slides that demonstrate why ESG matters for investors, and why investing in the sustainable economy is not only the right thing to do, but the right investment to pursue. Be it across the full ESG/Sustainable spectrum, or within the individual ESG pillars, sustainable investments have outperformed their conventional peers across time and markets.

We fed Dall-E information about KanataQ's seven partner companies, and asked it to portray their company as an animal. This is what we got: Position Green The deer’s grace and connection to nature align with sustainability. Its agility mirrors the precision and adaptability required in sustainability reporting. Neural Alpha (Responsible Capital) The wolf conveys intelligence and leadership. The circuit-like fur emphasizes its focus on AI and advanced analytics for ESG. ED4S The eagle represents vision and learning, perfectly suiting a company that educates about sustainability. Its futuristic aesthetic connects with forward-thinking and innovative education methods. Ecorth Turtles are known for their long lifespan and ability to adapt to changing environments over centuries. This mirrors the long-term perspective required for analyzing and addressing climate risks. Impactive Tech The panther embodies bold impact and influence. Its roar sends out visible waves of engagement energy, depicted as glowing, colorful Tidal Impact The orac's connection to the ocean ties to sustainability themes. Its powerful leap and tidal energy symbolize transformative consulting services. Iconic Air The butterfly symbolizes transformation and lightness, aligning with reducing carbon footprints. Its wings are semi-transparent, with patterns resembling carbon molecules dissolving into air. Working with such an exceptional group of sustainability leaders has been a true privilege. Thank you for choosing Kanata Advisors as your trusted advisor.

Europe Has 3X the Market Share of ESG Funds Compared to the US. And 12X the Rest of the World. Many people know that ESG funds play a bigger role in Europe. As a matter of fact, European ESG funds market share is 3X larger than in the United States (12% to 4%). However, what’s less known is that ESG funds in the US cost double their conventional peers, while in Europe the cost is comparable. And what’s even more fascinating is that BlackRock (iShares) has the largest ESG ETFs market share in both markets. One has to wonder to what extend, higher ESG funds pricing in the US is deterring capital allocation to these funds? And what responsibility does BlackRock bears if any in driving these pricing trends? Note: The underlying data is from the The future of Asset Management report by BNP Paribas published on December 10th 2024. The Charts are both by Kanata Advisors and BNP Paribas.

From An Idea To 120 Sustainability Solutions! When I and Rich Munro announced KanataQ on July 26th (after having been discussing the idea for about a year) KanataQ was nothing more than a bunch of sketches and bullet points. On August 26th, we introduced a first version of KanataQ with just over 60 pioneering solution providers. And today, 104 days later, KanataQ has 120 solution providers, who’ve collectively enjoyed 3350 profile views, and received 1390 leads. The feedback we are getting has been phenomenal: ➡️        “Nawar. This is SO useful - as we are currently contemplating which ESG software to look into. This is very insightful!!” – Sustainability manager ➡️       “I am doing a comparison for a client of the different carbon solutions currently available and I was hoping to leverage Kanata's awesome site for this.” - Sustainability consultant ➡️       “Very useful solution....Great platform overall! Seems like a great tool for companies to filter out options” – Sustainability director ➡️        “Hey Nawar!! thanks for sharing this seems extremely useful ... I constantly struggle with this.” - Sustainability manager Building KanataQ is not just about building a business. It is about making an impact. And here are a couple of key data points to prove it: 💡        Companies on track with their decarbonization goals are 2.2x more likely to be using digital carbon management solutions. BCG (https://lnkd.in/dkt5Ajav). 💡       Companies that have successfully embedded sustainability in their operations are 80% more likely to be tapping the potential of AI to convert data into actionable insights. IBM (https://lnkd.in/gVhzkz-E). By making sustainability solutions easier to find, filter, compare, and contact we aim to make a tangible impact on the scale and the pace of the sustainable transition. If you happen to be looking for sustainability solutions or are currently using one, we invite you to visit and try KanataQ (https://kanataq.com/). And if you are a sustainability solution provider, we invite you to join us (it’s free to list and takes 10 min to sign up - https://lnkd.in/gFuUZukx). We are deeply, deeply, thankful to LinkedIn's sustainability community for your incredible support and valuable feedback as we continue to build and grow KanataQ. I can safely say that without your backing, none of this would have happened. And for that we will forever be grateful.

From Why To How Business sustainability is increasingly moving from the “why” stage (Why do you I need to do this? What in it for me?) to the “how” stage (How do I do this? How do I do it well?). I would say up until the early 2020s the discussion around ESG and integrating sustainability in business was heavily skewed towards “why”. However, during the last 18 months or so, the conversation has tilted towards “how”. That said, the transition from "why" to "how" is not uniform across all sustainability topics and markets. In areas such as carbon accounting, the conversation has significantly shifted towards the "how" end of the spectrum in many markets. However, in more nascent areas like biodiversity and nature impacts, the "why" remains a significant part of the dialogue. This shift has critical implications for how sustainability solution providers introduce and communicate their offerings. For sustainability topics and markets firmly in the "how" stage, messaging should focus on user experience and efficiency. Conversely, for topics and markets still in the "why" stage, messaging should emphasize the use case and its relevance. Yet, I’ve come across many solution providers using "how" messaging in "why" markets and "why" messaging in "how" markets. The implications extend beyond messaging. During the "why" stage, solution providers can often get away with less-than-perfect quality and design because buyers at that stage lack benchmarks for how things should be done and done well. (Sustainalytics is a prime example of a company that thrived during the "why" stage but has increasingly lost relevance in the "how" stage.) On the other hand, when a market moves to the "how" stage, competition becomes much tougher. While buyers become more plentiful at this stage, they also become more discerning and favor those who deliver the best experience and value for money. Markets transitioning from the "why" to the "how" stage often present a false dawn for early "why stage movers," who may suddenly find their messaging and solutions out of sync with the realities of the "how" stage. The transition from "why" to "how" can sometimes happen organically as knowledge of sustainability issues and their business implications becomes better understood. However, this transition can also happen inorganically due to the enactment of sustainability regulations, which force a "why" and propel the market into the "how" stage. Inorganic transitions from "why" to "how" are much easier to spot than organic ones. When and how a market will flip from "why" to "how" is a critical question every solution provider should ask themselves. Sustainability professionals and solution providers must carefully assess where their market currently stands and adjust their skill sets, messaging, products, and services to align with the market's current position and where it is heading.

KanataQ Got You Covered! Leafr published an interesting report on the state of sustainability (https://lnkd.in/g3jGf9Mf). Among its findings, the report identified 17 sustainability skills gaps holding back sustainability professionals. Thankfully, at KanataQ, our listed sustainability solution providers have the capacity to address all these skills gaps, enabling sustainability professionals to move forward with their sustainability tasks, plans and initiatives. Check out these solution providers by visiting the KanataQ website (https://kanataq.com/). You can easily find them using our powerful search engine and filter options which includes: industry expertise, provider size, region, trust score, starting price, among many other filters.

🌍 Sustainability Meets Business Value 🌱 Looking to align climate action with tangible business results? Don’t miss Terra Trust’s upcoming webinar on December 11, 2024, at 11:00 a.m. ET! 💡 Gain insights from industry leaders: - Asim Razzaq: Co-founder & CEO, Yotascale - Nawar Alsaadi, FSA, SIPC: CEO & Founder, Kanata Advisors - Mike DiPetrillo: Founder & CEO, Terra Trust - James Hall: Head of GreenOps, Greenpixie - Ted DellaVecchia: COO & Co-Founder, Terra Trust Discover how ESG strategies drive efficiency, sustainability, and business growth. Don't miss it! Register Today! 👉 Register here: https://lnkd.in/d7D2-vR7 #Sustainability #ESG #ClimateAction #Leadership #Innovation

The second edition of The State of Sustainable Business Compendium for 2024 is progressing well and is on track for publication in Q1/25. In the meantime, for those who missed The State of Sustainable Business Compendium first edition (released in April this year,) I am sharing it again here since many of the data points remains highly relevant. If there are peculiar sections, changes, or improvements you would like to see in the upcoming edition please let me know prior to December 31st. I will do my best to accommodate your requests. PS. If you would like to sponsor the second edition, feel free to drop me a message or email me at Nawar@kanataadvisors.co

The Best Sustainability Solution Will Not Win the Market Those old enough may remember WordPerfect. In the 1980s and early 1990s, WordPerfect was the dominant word processing software and was widely regarded as superior to MS Word. However, by the late 1990s, WordPerfect was nearly extinct. Its demise was attributed to a failed migration to the Windows environment and aggressive marketing and bundling strategies by Microsoft. I bring this up because, despite common belief, building a quality, feature rich, Software/SaaS ESG solution does not guarantee success. An effective and dynamic marketing strategy is equally essential. At KanataQ, we already see stark differences in the marketing strategies of the 100+ sustainability solutions listed on our platform (https://kanataq.com/). Some providers are highly proactive: they regularly refine their messaging, experiment with different pricing models, update their categories, and most recently, have embraced KanataQ Trust Score by actively requesting client endorsements (Kudos for REDEFINE TECHNOLOGIES and EmitIQ for being the first two providers to do so). Conversely, other providers have created their KanataQ profile but never logged back in, nor have they sought a single client endorsement. In a market as crowded as the ESG solutions space, a deliberate, proactive, and consistent marketing strategy is crucial for any company aiming to succeed in this fast-growing sector. Since August 26, we have generated close to 1,300 leads for companies listed on KanataQ. If you’re not receiving many of these leads, it’s worth asking yourself: Why? What can you do differently to capture the attention of these potential clients? And if you’re not succeeding on KanataQ, where else might you be losing? Many people mistakenly equate marketing with advertising. While advertising is a component of marketing, the broader discipline also encompasses pricing, messaging, relationship-building, product positioning, and more. Leveraging position marketing, Microsoft veteran Monica Harrington offers valuable insights into why Microsoft prevailed over WordPerfect in her blog (https://lnkd.in/gSfPFpyR), she explains: “While WordPerfect might be racing to include more features, we were out to jumpstart a years-long campaign to change the criteria by which word processors were judged to emphasize usability first, the length of the feature list not at all... Ironically, in my view, it was only when we gave up the power positioning and emphasized simplicity and usability that we started to gain real traction.” Knowing they couldn’t outmatch WordPerfect on features, Microsoft shifted the emphasis towards utility and placed simplicity at the core of its marketing message. This example underscores an essential truth: knowing how to position and differentiate your product is as important as what your product can or cannot do.

Practical Application of The Three Pillars ESG Value Creation Framework To help those interested in leveraging my three pillars ESG/sustainability value creation framework, I am pleased to share the underlying 18 constituents underpinning the framework.   This framework is especially helpful for those thinking about integrating value creation in their sustainability solutions offerings. To get started, you should map your solution to all the relevant value creation constituents to better understand where you might be creating value. Furthermore, you should rank the relevant constituents under “direct” or “indirect” value creators, and quantify the financial value created to the client for the constituents identified as “direct”. Once these steps are undertaken you can think about highlighting these value creating benefits in your value proposition and product/service messaging. Example, A software CSRD reporting solution creates value through: 1️⃣    Lower compliance cost (direct) – Quantification: number of employee/billable hours saved X by cost per hour. 2️⃣     Lower regulatory risk (direct) – Quantification: regulatory fines for erroneous or late CSRD/ESRS reporting. 3️⃣     Governance failure risk reduction (indirect). 4️⃣    Enhanced client trust, transparency, and brand loyalty (indirect). 5️⃣     Cost of capital (indirect). Outside of solution providers, business sustainability professionals can leverage this framework to understand the potential value creation potential of their proposed sustainability initiatives. As well as identify potential areas where sustainability initiatives can generate value as per their companies business priorities and strategic plans. Finally, it is important to note that every value creation constituent in this framework is underpinned by solid empirical data, business case studies and/or academic research.