Cowbon Emissions

ProHub Comment

This is a complex sustainability case requiring the candidate to prioritize emission reduction opportunities across multiple business segments (farming, processing, transportation). The case tests market sizing skills (estimating cow herd size), financial analysis (cost-benefit calculations over 5 years), and strategic decision-making to meet a 45% reduction target within budget constraints.

Estimated Time 15 minutes
Difficulty Hard
Source IESE
50 / 100

Our client is a major milk producer in New Cowland, Milking it Co., MIC. New Cowland has recently introduced a law that means MIC has to reduce its GHG emissions by 45% of 2019 levels within the next five years or face being shut down or heavily fined. They currently produce 20% of New Cowland’s GHG emissions.

The CSO has hired us to figure out a way to reach this target.

Clarifying Information

  1. MIC produces approximately 100% of New Cowland’s milk supply
  2. MIC does not have plans for expansion, but reducing volumes is not an option
  3. They only produce milk and have no plans to diversify
  4. Budget for this project is $750m/year for the next five years (for perspective, current revenues are $15billion)
  5. MIC owns the entire production chain – from farms, production and transport, they sell to a variety of clients
  6. 5% of their market is local, the rest is foreign
  7. Only need to reduce GHG directly produced by MIC