Investment Proposal Draft
TO: Professor Clark Hansen, CEO, Anima Mundi Development Partners (AMDP)
FROM: Annie Wiener, Research & Development, Anima Mundi Development Partners (AMDP)
DATE: Oct 14, 2024
SUBJECT: Investment Proposal for EarthCup
Overview
As AMDP seeks new socially responsible ventures, I compel the team to consider a company thriving in its pursuit of sustainability and environmental impact; Earth Brands, the parent company of EarthCup, is revolutionizing the world of single-use plastic with an innovative, eco-friendly solution. Founded in 2021 by two Cornell students who observed the immense amount of plastic waste on college campuses, EarthCup aims to rectify the worldwide plastic waste problem through its biodegradable and compostable coffee cups made from plant-based material like polylactic acid (PLA), which fully decompose within 90 days (EarthCup). In 2022, the company received $4 million in Series A funding from notable investors like Mark Cuban and Wyc Grousbeck (UVA Today). Since their inception, Earth Brands has helped prevent over 16 million plastic cups from entering landfills and oceans, and have partnered with major entities such as Madison Square Garden and American Airlines Center to further their impact. Their long-term goal to achieve carbon-neutrality by 2025, along with their dedication to producing 100% compostable products, reflects their strong alignment with AMDP's values (MCC). Due to their ingenuity and rapid expansion, I propose that AMDP should consider investing in Earth Brands, as its environmentally sustainable practices and profitability potential make it an ideal asset for the company to achieve a significant social impact.
Roadmap:
Analyze socially responsible business practices to assess Earth Cup’s potential.
Define key concepts to examine how Earth Cup applies these principles
Provide industry expert evaluations on Earth Cup's efficiency, scalability, and profitability
Present a final recommendation on whether AMDP should invest in EarthCup.
Triple Bottom Line
The Triple Bottom Line is a framework that assesses a company’s success by both its financial performance and impact on people and the planet ( Elkington, John.) At AMDP, we employ the triple bottom line business model to help us make ethically and socially responsible decisions, using three guiding principles– profit, people, and planet– which seamlessly align with the core values of EarthCup.
People: A company’s positive impact on all stakeholders, including employees, customers, and communities.
Planet: Commitment to environmental sustainability and positively impacting the planet.
Profit: A company's financial viability, and their ability to generate profits for shareholders.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) refers to the strategies and policies that companies claim to implement in order to benefit both the environment and society, going beyond the mere focus of profitability. This is also known as a “self-regulating business model,” helping a company hold themselves accountable to positively impact all of their stakeholders, while minimizing negative environmental impacts (Investopedia).
Social Enterprise
A social enterprise is a type of business that employs commercial strategies and a market-driven approach to address pressing social and environmental challenges, striving to make a positive impact on society as opposed to just maximizing profits (Investopedia). Confronting issues like poverty and inequality, these enterprises often reinvest their profits to support their social mission, rather than distributing them to shareholders.
Carbon Footprint
A carbon footprint is a measure of the amount of carbon dioxide and greenhouse gas emitted by a specific activity, person or group. (Research Gate). It can be measured by calculating the emissions from activities, such as energy consumption, transportation, and waste generation, over the life stages of a product. Carbon footprints serve as a key contributor to climate change; decreasing them can help reduce issues like global warming and rising sea levels, so it is essential to understand the impact of our carbon footprint to help protect the planet. (Mode Shift)
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