This is a quantitative-heavy investment decision case that tests NPV calculations, energy consumption modeling, and strategic thinking around ESG goals. The case requires candidates to balance financial metrics (NPV) with non-financial sustainability objectives, making it ideal for assessing both analytical rigor and strategic judgment in a business context.
Our client, Green Co, is a $10B global manufacturer and retailer of high-end outdoor apparel, with several well-known brands. The company has big growth aspirations. Through organic and inorganic growth, Green Co is hoping to grow from $10B in revenue in FY21 to $15B by FY25.
At the same time, the CEO has recognized their customers’ and investors’ interest in being an environmentally sustainable company and has asked their Director of Sustainability to develop goals for absolute reduction in carbon emissions despite the growth they have planned (as compared to a “Business As Usual” (BAU) scenario). The CEO expects this to support the company’s overall sustainability vision, help ensure protection of their brands’ value, and bolster the company’s market capitalization.