the coming years, governments and companies are expected to invest nearly $10 trillion per year. Berger-de Leon et al., (2022) have identified 11 investment areas, ranging from green transportation to decarbonization, see exhibit 2. These areas capture business opportunities and can be considered as value pools, available potential in the market for new revenues, that start-ups can exploit and help explain how your case company has transformed into a Unicorn company (because there is demand for its products/services):How to build a unicorn: Lessons from venture capitalists | McKinseyHence, sustainability has emerged as a critical value driver, and businesses have began to recognize the opportunity of addressing the challenge. Bowcott et al., (2022) observe corporate newcomers that are fostering sustainability as a strategic lever to create value, the rise of climate unicorns, capturing the business opportunity of climate technologies by drawing on five building blocks (exhibit 1). This you can use to explain the growth strategy and underlying capabilities in your case company.Green business building: Lessons from sustainability startups | McKinseyArtificial intelligence (AI) is often used in climate tech, such as a tools that predict weather, track icebergs, and identify pollution, to reduce environmental impact.By optimizing energy consumption, reducing waste, and enhancing resource management,AI is revolutionizing processes and driving the adoption of sustainable practices.However, with great power comes great responsibility. AIis proving to be a double-edged sword. While this can be said of most new technologies, both sides of the AI blade are far sharper, and neither is well understood. Cheatham et al., (2019) provide a useful catalog of AI risks and three principles that organizations, such as your case company, can embrace to mitigate the risks of applying AI and advanced analytics.Confronting AI risks | McKinseyBuilding a green business come with new challenges. For example, when scaling a new climate technology, it may be difficult to balance the time it takes to validate the technology on a demonstration scale while also planning industrial-scale installations across different conditions and geographies. Start-ups typically have been the first movers on some green ventures as they are often equipped with a higher tolerance for risk-taking and the ability to operate at faster speeds. Through working with organizations that have built and scaled green businesses successfully, Bland et al., (2022) have identified seven key principles. These you may find useful for providing managerial recommendations for how your start-up company can continue to grow and accelerate towards Net Zero.Green business opportunities and net zero | McKinseyYour task:How to build a green Unicorn at ScaleLaunching and scaling a new business is no easy feat. When you add the objective of solving some of the worlds greatest challenges, like climate change, the stakes are even higher. Your group task is to choose a tech start-up Unicorn preferably from the following listThe Full List of UK Unicorn Companies | Updated 2024 (beauhurst.com) and then:THE COMPANY I HAVE CHOOSEN FROM THE LIST IS : DELIVEROOYou need to work on that company and then:* Provide managerial recommendations for how it can continue to grow and accelerate towards Net Zero - a target of completely negating the amount of greenhouse gases produced by human activity, to be achieved by reducing emissions and implementing methods of absorbing carbon dioxide from the atmosphere.It should be highly unplagiarised work plus the work should be of high quality.T
How to build a green Unicorn at Scale.
Full Answer Section
- Optimizing Delivery Routes with AI:
- Utilize AI algorithms to optimize delivery routes, minimizing travel distances and reducing fuel consumption. This not only benefits the environment but also improves delivery efficiency and customer satisfaction.
- Implement route planning that prioritizes electric vehicles (EVs) and incentivizes riders to utilize them through charging infrastructure and bonus programs.
- Partnering with Sustainable Restaurants:
- Partner with restaurants that prioritize local sourcing, organic ingredients, and eco-friendly packaging. Offer customers filters to highlight these sustainable options on the app.
- Collaborate with restaurants to develop reduced-packaging options for deliveries.
- Encouraging Low-Carbon Deliveries:
- Incentivize riders to use bicycles, e-bikes, and other low-carbon modes of transportation for shorter deliveries. Introduce designated bike lanes and secure parking areas for riders in partnership with local authorities.
- Explore the feasibility of implementing micro fulfillment centers in city centers to reduce delivery distances.
- Carbon Offsetting and Transparency:
- Partner with carbon offsetting programs to neutralize emissions generated by deliveries. Offer customers the option to contribute to these programs during checkout.
- Develop a comprehensive sustainability report outlining Deliveroo's carbon footprint and its efforts towards reducing it.
- Utilizing "Green Packaging":
- Partner with packaging companies to develop and implement eco-friendly packaging solutions made from recycled materials or compostable options.
- Implement a customer deposit program for reusable containers, incentivizing customers to minimize single-use packaging waste.
- Balancing Efficiency and Sustainability: Finding the right balance between optimizing delivery routes for efficiency and minimizing environmental impact will require continuous monitoring and adjustments.
- Infrastructure Development: Expanding EV charging infrastructure and designated bike lanes necessitates collaboration with local governments and urban planners.
Sample Answer
Deliveroo: Accelerating Towards Net Zero
Deliveroo, the UK's leading food delivery unicorn, faces a unique challenge: achieving hyper-growth while minimizing its environmental impact. While not traditionally considered a "green" company, Deliveroo can leverage its existing infrastructure and technological prowess to become a leader in sustainable food delivery. Here are some managerial recommendations for how Deliveroo can achieve this: