AMDP Investment Proposal Memo
FROM: Lucy Pape, Research & Development
DATE: July 9, 2021
SUBJECT: Investment Opportunity: For Days Sustainable Clothing
In response to your request for a proposal of a responsible, sustainable investment opportunity, I would like to make a case for For Days Sustainable Clothing. This memo outlines:
The criteria that must be met by potential investments.
Background and evaluative information about For Days.
My recommendation to invest in For Days.
Investment Standards
Triple Bottom Line
According to Harvard Business School Online, “The triple bottom line is a business concept that posits firms should commit to measuring their social and environmental impact—in addition to their financial performance” (Miller). The three P’s of the triple bottom line are:
People– Businesses should create value for all stakeholders, not just shareholders.
Planet– Businesses should make a positive impact on the environment.
Profit– Businesses should generate income for the shareholders.
Businesses should follow a triple bottom line because operations centered around shared values show increased productivity and innovation (Miller).
Corporate Social Responsibility
Social Enterprise
Unlike a typical for-profit business using CSR, a social enterprise has social or environmental goals at the center of its mission. Toms Shoes and Patagonia are examples of social enterprises: the central purposes of the companies are to find solutions to social issues and environmental issues, respectively, and profit is secondary.
Carbon Footprint
Businesses seeking any kind of longevity must focus on reducing their carbon footprint. According to The New York Times, “A carbon footprint is the total amount of greenhouse gas emissions that come from the production, use and end-of-life of a product or service” (Albeck-Ripka). Greenhouse gases get trapped in Earth’s atmosphere and cause global warming. The importance of reducing a business’s carbon footprint is immeasurable; the alternative is the dismantling of the very planet we live on.
About For Days
Purpose and Reputation
For Days Sustainable Clothing is a social enterprise launched in 2018 by Kristy Caylor – a fashion industry veteran with experience working for brands like Gap, Banana Republic, Maiyet, and more according to their website (“About”). After reflecting on how much waste the fashion industry generates, Caylor began to search for solutions. Previously explored solutions like consignment, clothes sharing, and donating still left waste at the end of the cycle. Then she created the industry’s first “closed-loop” system. Here’s how it works:
First, you buy an item (or several) of For Days clothing made of 100% ethically sourced, organic cotton.
Next, you use the clothing until you reach the point where you would normally throw it out or donate it to Goodwill to make room for new clothes.
Then you send the used For Days clothing back to the company where it is broken down and processed into new clothing.
Finally, you receive a credit that will go towards your next For Days purchase.
Not only is it the first clothing company to eliminate clothing waste from its business cycle, For Days also reduces waste with reusable packaging and carbon offsets (“About”).
In addition to environmental strengths, For Days has also shown important business capabilities. For example, the company has demonstrated that it listens to consumer wants and needs. The customer base focuses on sustainability and thus the product centers around it. Initially, Caylor built For Days on a subscription model, but in 2020 when she learned that her customers were experiencing “subscription fatigue” she changed the model in response to their desires (Farra, “Reward”). The company’s success is also evident in its two-time appearance in Vogue magazine, the industry leader in fashion publications.
Business Growth
As a private company, specific financial information on the revenues and profits of For Days is not publicly accessible. Instead, I’ve found a few alternative markers through PrivCo which signal the profitability of this company.
For Days gained six new investors between March and November of 2018. The Collaborative Fund is one of those investors who has backed notably successful companies such as TaskRabbit and Quora.
The company was valued at $10 Million in 2018.
For Days has a growth score of 59, which is described by PrivCo as a positive indicator of growth potential (PrivCo).
Now, I understand that that information tells you For Days has been doing well, but does not tell how well it could do in the future. Fortunately for an investment firm like AMDP, For Days is selling an increasingly hot commodity: sustainability. According to a study cited by Environment + Energy Leader, “81% of global respondents feel strongly that companies should help improve the environment [and] customers globally are ‘voting with their wallets’” (Asad). Not only are more and more consumers concerned with the climate crisis, but their purchases are being motivated by it. The article also points to the trend of eco-friendly consumerism growing more popular with newer generations. For Days is proof that doing the right thing and the profitable thing are not mutually exclusive.
Claims and Validity
For Days’ website makes numerous claims about their ethics and environmental impact. The “Zero Waste” Page says the following about the sources of its products.
Materials: “We use GOTS certified organic cotton fabrics and recycled materials that adhere to the Global Recycling Standard. Our dyes are Cradle to Cradle certified.”
Labor: “All of our factories are SMETA certified or follow the ISF Lindex Sustainability Commitment. On average, workers earn 20% more than minimum wage throughout our supply chain” (“Zero”).
According to good on you, an independent ethical fashion publication founded in Australia, “For Days' environment rating is 'great'” because their research has demonstrated that the materials and process used by For Days is as environmentally sustainable as it claims it to be. However, good on you gave For Days a labor rating of “not good enough.” The company does production in the United States which is a “medium risk country for labor abuse” and “there is no evidence it ensures payment of a living wage in its supply chain” (good). Considering the unfortunate fact that minimum wage is not a living wage in all parts of the world, For Days’ claims could still be true.
Perhaps the biggest claim the company makes is that they actually recycle the clothing that is sent back. Vogue writer Emily Farra verifies that the entire process takes place in For Days’ Los Angeles facility (Farra, “Revolutionize”).
Recommendation
I believe For Days is an excellent candidate for AMDP’s investment for the following reasons.
People: For Days’ business model inherently has people in mind because they want to conserve the environment for future generations. However, they have room for improvement in their labor wages which an Anima Mundi investment could fund.
Planet: By centering around waste prevention, For Days keeps the best interests of the planet and future generations in mind. Supporting the company with an investment would allow it to expand its business model and continue the preservation of our planet.
Profit: If Anima Mundi invests now, the return on investment will be unparalleled. With the increasing popularity of environmentally smart shopping, there is no end in sight for For Days growth.
Thank you for your consideration of this proposal, and I look forward to your decision.
Works Cited
“About Us.” For Days, https://fordays.com/about-us. Accessed 29 Jun. 2021.
Albeck-Ripka, Livia. “How to Reduce Your Carbon Footprint.” The New York Times, 31 Jan.
2019, https://www.nytimes.com/guides/year-of-living-better/how-to-reduce-your-
Asad, Harun. “Sustainably-Minded Customers: The New ‘Era of Sustainability.’” Environment +
Energy Leader, Business Sector Media, 7 Jun. 2021, https://www.environmentalleader.
com/2021/06/sustainably-minded-customers-the-new-era-of-sustainability/.
Farra, Emily. “This Zero Waste, Closed-Loop Company Will Revolutionize the Way You
Buy T-Shirts.” Vogue, 29 May 2018, https://www.vogue.com/article/for-days-closet-
credit-system-closed-loop-commerce.
---. “This Zero-Waste Brand Wants to Reward You for Your Old Clothes.” Vogue, 24 Feb.
2021, https://www.vogue.com/article/for-days-upcycled-t-shirts-basics.
“For Days.” good on you, https://directory.goodonyou.eco/brand/for-days. Accessed 7 Jul. 2021.
“For Days.” PrivCo, https://system.privco.com/company/for-days_private_stock_annual_
report_financials/. Accessed 7 Jul. 2021.
Miller, Kelsey. “The Triple Bottom Line: What It Is & Why It’s Important.” Harvard Business
School Online, 8 Dec. 2020,
https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line.
“Zero Waste.” For Days, https://fordays.com/your-impact. Accessed 29 Jun. 2021.
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