AMDP Draft

AMDP Investment Proposal

TO: Clark Hansen, CEO of AMDP

FROM: Jack Williams, Research and Development Analyst

DATE: March 5, 2023 

SUBJECT: Investment Opportunity in Charm Industrial

______________________________________________________________________________

As a part of my role within Research & Development at AMDP, it is my duty to find companies that present investment opportunities. Charm is a carbon removal company that converts plant-based biomass into bio-oil and sequesters it underground, preventing CO2 from returning to the atmosphere. However, AMDP should gather more information to verify Charm’s technological effectiveness, sustainability claims, and financial viability before making an investment.

This memo contains:

  • Summary of AMDP standards

  • Overview of Charm and their sustainable practices

  • Two expert opinions

  • Final recommendation

AMDP Standards

AMDP aims to invest in companies that are pressing our societies' most prevalent issues. This can include promoting environmentally friendly practices, socially responsible businesses, while creating financial opportunities. The four missions are:

Triple Bottom Line

The triple bottom line is a business concept that ensures companies must take into consideration more than just income statements. The framework for this concept can be summarized by the “Three P’s”:

  • People - creating a positive impact on communities (Miller, 2020) 

  • Planet - environmental effects

  • Profit - financial performance for shareholders



Corporate Social Responsibility

Corporate social responsibility (CSR) is a concept built on the principle that a company has a responsibility to the society around it (Stobierski, 2021). Firms that follow these principles act in a way where they are socially responsible to create a positive impact on the world. Companies implement by adopting ethical business practices, supporting social and environmental initiatives, promoting fair labor standards, and engaging with their communities.

Social Enterprise

Social enterprises are businesses, however, they operate a little differently. These businesses seek to further a social or environmental purpose. Like any business, they seek to make profit, however, they want to reinvest some of their profits into this environmental issue (Social Enterprise UK). 

Carbon Footprint

The total amount of greenhouse gases (including carbon dioxide and methane) that are produced by our actions (The Nature Conservatory). Companies track emissions across product life cycles and operations (ClimateTrade). As climate change becomes a more pressing issue, it is imperative that we all work together to reduce carbon emissions. By doing so, we are protecting our environment, reducing CO2 emissions, and minimizing the consumption of natural resources (Badamasi, 2023). 

Overview of Charm Industrial

Background

Charm Industrial was founded in 2018 in San Francisco by developing a scalable method for permanent carbon sequestration. Unlike direct air capture (DAC) technologies, Charm focuses on bio-oil sequestration, converting agricultural waste into a stable carbon-rich liquid and injecting it underground. This method ensures long-term carbon storage while utilizing waste materials that would otherwise release CO2. Charm has been able to gain recognition in the sustainability field by working with clients such as Stripe, Shopify, JP Morgan and Microsoft (LinkedIn). 

Financials

  • Revenue Growth: Charm has secured multimillion-dollar contracts for carbon removal. However, profitability remains uncertain due to ongoing infrastructure investment.

  • Return on Sales (ROS): Negative, as Charm is in its growth phase and reinvesting heavily in operations.

  • Quick Ratio: Estimated at 1.5, indicating sufficient liquid assets to cover short-term liabilities.

  • Funding: Over $100 million in venture capital, demonstrating strong investor confidence.

Company Claims

  • The process is "the most permanent and scalable carbon removal solution available today." 

  • To only use agricultural waste, and abandoned oil rigs to avoid deforestation or additional land use. 

  • Every ton of bio-oil injected into the ground results in approximately one ton of CO2 removed. 

  • Charm claims to have removed over 5,000 tons of CO2

    • Projects a capacity to remove 1 million tons annually by 2030. These claims align with AMDP’s carbon footprint reduction goals but require third-party verification.

Expert Opinions

Opinion 1: 

















TO: Clark Hansen, CEO

FROM: Jennifer Lau, Research and Development 

DATE: October 20, 2023

SUBJECT: Optoro Investment Proposal

Comments

Post a Comment

Popular posts from this blog

RANDOM POST 1

  The Rapid Growth of the National Hockey League (NHL) The National Hockey League (NHL) has seen remarkable growth over the past two decades, transforming from a niche sport into a global entertainment powerhouse.  Especially in the last couple of years, I have seen a large growth in the sport's popularity. We have seen increased viewership, the introduction to expansion teams, and a surge in the youth participation rate, which has moved the sport beyond its original confines of Canada and the northern United States to a global sport. The increased viewership can be directly correlated to the record revenue in NHL history last season, which was $6.2 billion (ESPN). The league also set new marks in attendance, and saw a large spike in sponsorship revenue. One way this was done was by introducing events like the Winter Classic, and international showcases such as the Four Nations Faceoff .  As this year was the preliminary year of the Four Nations Faceoff , it revoluti...
Read more

BOOK 2 POST

For this book post, I chose  Think Again: The Power of Knowing What You Don’t Know  by Adam M. Grant. I chose this book because I am curious about the psychology behind decision-making, in particular how people form opinions. Grant succinctly explored how rethinking and unlearning can be just as important, if not more, than acquiring new knowledge. That idea alone made me curious. Overall, I found the book to be very thought-provoking. His writing is relatable and full of real-life examples and stories that make complex ideas easier to understand. He uses stories about scientists, CEOs, educators, and even firefighters to show how dangerous it can be to get stuck in your own thinking. The good: It’s a quick and enjoyable read with tons of insights. I appreciated how Grant encouraged humility, curiosity, and self-awareness. which are traits we could all use more of, especially in such a polarized world. The bad: At times, some of the points felt a little repetitive, and a few o...
Read more

RANDOM POST 2

As many know, Rory McIlroy cemented his legacy this past weekend by becoming the 6th individual to complete the career Grand Slam. For those unfamiliar, a career Grand Slam is winning the Masters, PGA Championship, U.S. Open, and Open Championship. His victory this past weekend was achieved after 17 attempts at Augusta, including a heartbreaker in 2011. His emotional win, culminating in a birdie on the first playoff hole on two beautiful approach shots, secured his place among golf's elite and captivated a global audience.  The final round of the Masters averaged 12.7 million viewers on CBS, which was a 33% increase from 2024, and the most since 2018. The broadcast was able to peak at 19.5 million viewers during McIlroy's dramatic playoff against Justin Rose, surpassing even Tiger Woods' 2019 Masters win in peak viewership. In addition, Sky Sports in the UK, and Paramount+ experienced some of their most-streamed events as well.  The success of the 2025 Masters underscores t...
Read more