AMDP Draft

TO: Clark Hansen, CEO, Anima Mundi Development Partners 

FROM: Naomie Di Martino, Research & Development AMDP

DATE: March 10, 2023

SUBJECT: Investment Opportunity: Rent the Runway


As a part of AMDP’s Research and Development Team, you asked that I identify a socially responsible, environmentally sustainable, and profitable company for AMDP to invest in. After extensive research, Rent the Runway, an e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories, sounds like a great company to consider investing in; however I will expand on why Rent the Runway doesn’t align with AMDP’s core standards. In this memo, you will find the following:

  • AMDP Standards

  • Background of Rent the Runway

  • Analysis of Rent the Runway

  • Recommendations 

  

AMDP Standards

Triple Bottom Line

The Triple Bottom Line is a business concept that states firms should commit to measuring their social and environmental impact in addition to their financial performance rather than solely focusing on generating profit or the standard “bottom line.” It can be broken down into the three “P’s” (Miller):

  1. Profit: an organization's positive and negative impact on the local, national, and international economy. This includes creating employment, generating innovation, paying taxes, wealth creation, and any other economic impact an organization has. (Kraaijenbrink)

  2. People: an organization's positive and negative impact on its stakeholders. These include employees, families, customers, suppliers, communities, and any other person influencing or being affected by the organization. (Kraaijenbrink)

  3. Planet: an organization's positive and negative impact on its natural environment. This includes reducing its carbon footprint, using natural resources, toxic materials, etc. (Kraaijenbrink)


Corporate Social Responsibility

Corporate social responsibility is curating a business that aims to increase a company's social impact while meeting business objectives such as growth and revenue goals. Corporate social responsibility includes economic, environmental, ethical, and philanthropic responsibility. (Fernando)

Social Enterprise

A social enterprise or social business is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs. (Barone)

Carbon Footprint

A company’s carbon footprint is the total amount of greenhouse gas emissions directly or indirectly caused by a company’s activities and can be measured in tonnes of carbon dioxide equivalent (CO2e). It can be divided into three scopes:

  1. Scope 1: Direct emissions from sources controlled or owned by your company (e.g., vehicles, furnaces, boilers, equipment) (Sheehan)

  2. Scope 2: Indirect emissions from energy bought by your company (e.g., electricity, heat, cooling) (Sheehan)

  3. Scope 3: All other indirect emissions (e.g., material use, waste, business travel, staff commuting with vehicles not owned or controlled by your company) (Sheehan) 

Reducing carbon footprint is important because it mitigates the effects of climate change, which positively affects public health along with plant and animal diversity. In addition, this boosts the global economy and leads to innovative, more environmental-friendly solutions. (Smoot)


Rent the Runway Background 


Rent the Runway Analysis


Recommendations 












Works Cited

Barone, Adam. “The Aims of Social Enterprises.” Investopedia, Investopedia, 8 July 2022, https://www.investopedia.com/terms/s/social-enterprise.asp. 

Fernando, Jason. “Corporate Social Responsibility (CSR) Explained with Examples.” Investopedia, Investopedia, 19 Dec. 2022, https://www.investopedia.com/terms/c/corp-social-responsibility.asp. 

Kraaijenbrink, Jeroen. “What the 3PS of the Triple Bottom Line Really Mean.” Forbes, Forbes Magazine, 12 Oct. 2022, https://www.forbes.com/sites/jeroenkraaijenbrink/2019/12/10/what-the-3ps-of-the-triple-bottom-line-really-mean/?sh=5af3ca085143. 

Miller, Kelsey. “The Triple Bottom Line: What It Is & Why It's Important.” Business Insights Blog, 8 Dec. 2020, https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line. 

Sheehan, Elizabeth. “How to Measure Your Carbon Footprint.” BDC.ca, 6 Feb. 2023, https://www.bdc.ca/en/articles-tools/sustainability/environment/how-measure-your-carbon-footprint. 

Smoot, Grace. “4 Main Reasons Why Reducing Your Carbon Footprint Is Important.” Impactful Ninja, https://impactful.ninja/why-reducing-your-carbon-footprint-is-important/. 

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