AMDP Proposal Final

 TO: Clark Hansen, CEO, AMDP

FROM: Daniel Leung, R&D Analyst, AMDP

DATE: March 10th, 2023

SUBJECT: Investment Recommendation for AELER Technologies

I’m writing to introduce a promising investment for AMDP. AELER Technologies is a company that addresses our mission of investing in socially responsible and environmentally sustainable organizations. It is positioned to be an incredible disruptor in the global shipping industry. Outlined in this memo are: 

• A Review of AMDP Standards 

• Background on the Maritime Logistics Industry and AELER Technologies 

• Analysis and Research into AELER

• Investment Recommendation 

AMDP Standards 

Triple Bottom Line: This is the idea that firms should measure their environmental and social impact in addition to just their profitability. Traditionally, the bottom line is profitability. However, the Triple Bottom Line introduces three “Ps”:

• Profitability: Revenue minus cost AKA much money the company is making.

• People: Focus on the stakeholders of the firm (i.e. employees, customers, nearby communities)

• Planet: Impact of corporations on the planet and environment. These include carbon emissions and sustainability practices in using operations and raw materials (Miller). 

Corporate Social Responsibility (CSR):  This refers to the management practice of achieving profitability but also meeting the Triple Bottom Line. CSR is a style of leadership in a company that intertwines environmental and important social concerns with its business operations (United Nations Industrial Development Organization).

 

Social Enterprise: An organization that has two main goals: doing something socially beneficial and maximizing its profit while running a solid business. Profits are used to reinvest in the firm to help empower the continued pursuit of a socially beneficial mission (Corporate Finance Institute).

Carbon Footprint: The total carbon dioxide emissions that an organization releases in its operations. We measure one’s carbon footprint in various ways. Some ways are the Green House Gas Protocol. Essentially, emissions are measured through the consumption of an organization. It is important to reduce carbon emissions because they lead to greater global warming which destroys ecosystems, melts glaciers, and (if allowed to run rampant) can endanger human lives (Selin, NASA).

Background on The Maritime Logistics Industry and AELER Technologies 

Maritime Logistics Industry Overview: 

There are 3 key points to know about this industry and its current state.

1. Maritime logistics is a massive, multi-billion dollar industry that handles 80% of all global trade (United Nations). That means a staggering 4 of every 5 items sold depend on maritime shipping. 

2. The industry is extremely outdated and has an urgent need to strengthen its supply chain and innovation, especially after COVID. There are many stakeholders so it is hard to keep track of data. Large firms utilize weak systems, paper documents, and low data accessibility (Peterson).

3. There is a global shift towards sustainability and efficiency. The United Nations calls for drastic investments in innovative technology that reduces carbon emissions.

Overview of AELER Technologies: 

Founded in 2018, AELER addresses all of the aforementioned key industry points while also putting AMDP standards at the forefront of its operations. AELER offers innovative shipping containers that reduce carbon emissions, increase efficiency, and provide data. Beyond the containers, they provide a software ecosystem for monitoring, running analysis, and getting crucial management info (AELER). 

AELER’s Financials:

Note that due to its early nature, relatively few metrics about AELER could be confirmed. However, the data we do have indicates solid financial health and performance.

• Total Funding: $8.9 Million 

• $7.58 Million was raised in a recent Seed Round on March 9th, 2022. Investors include successful firms like Mac Venture Capital, AA Sons, and Virtual Network (CrunchBase).

AELER’s ESG and Impact Report

Due to their young status, a specific impact report is impossible to generate. However, their commitment to their environmental values is woven through their culture and has been verified by external sources. I have outlined some examples below:

• When they hire they explicitly look for shared passion and values in sustainability and social responsibility. Having previously worked for AELER, I can attest that everyone from the CEO to fellow interns was genuinely motivated by values that align with AMDP Standards. 

• AELER has been recognized through the following programs for its work and commitment to making a socially responsible, sustainable future. 

• Joined the Solar Impulse Group, a process that required a rigorous approval process using independent experts to certify that a firm truly addresses environmental issues (Solar Impulse Foundation).

• Featured by the Green Business Award, an organization that brings in national businesses and environmental organizations to honor firms that “combine ecological innovation with environmental success” (Green Business Award).

• Won the 2022 TechCrunch Climate Pitch-Off, an international pitch competition between various early-stage, sustainability-oriented companies (Tambe)

Analysis and Research:

Overall there are two main areas that show AELER’s strong position in the market as well as its promising prospective future performance. 

First, changes in the AELER team and operations show successful performance. 

• Joshua Tan, former commercial director at logistics juggernaut Unifeeder recently left to join AELER because he believes that “AELER’s smart and sustainable composite containers are the revolution the industry needs” (Savvides). Tan’s move from his notable position at Unifeeder to AELER not only signals a vote of confidence but also increases AELER’s capabilities. They can now use Tan’s vast experience, connections, and knowledge in the industry.

• The AELER team increased by 50% last year, going from 20 to 30 employees

• Opened a new research center inside Porto University increasing resources and research talent

• Currently recruiting for 13 open positions, indicating healthy status and large growth (AELER)

These staffing and operational developments indicate that AELER is growing rapidly and beginning to cement itself as a force to be reckoned with in the industry.

Secondly, AELER has had astounding breakthroughs and success with its containers. The current containers that are industry standard have stayed largely the same for the past 60 years (Nagurney). They are outdated and inefficient- no other industry still uses technology that was made over half a century ago. AELER is completely disrupting this obsolete status quo. 

In terms of performance and environmental impact, their innovative containers provide incredible benefits. Compared to a standard container, AELER containers provide clients with: 

• 20% reduction in transportation carbon emissions

• 4 tons of extra payload capacity in a standard 20-foot unit

• 4% less required road fuel for transportation (AELER Technologies Pitch Deck)

These features not only reduce client costs but also help protect the planet. The physical container also has sensors known as the Internet of Things (IoT) that can intelligently monitor and share data. AELER has developed a software platform that allows users to easily manage their assets and gain visibility into their condition even when the containers are in the middle of the ocean. This solves a critical need currently faced by many stakeholders in the logistics industry (AELER).

AELER has already begun demonstrating its success. After running a pilot program between AELER and Procter & Gamble, Sergio Barbarino, founder of P&G’s Logistics R&D unit and vice-chair of Alice had this to say about AELER: “The logistics industry needs innovation, big time! The Aeler container is a bright example of a significant step forward” (Oehrli). AELER’s container has also gained acclaim by being showcased in large logistics events such as Intermodal Europe 2022 (Tank News International). 

Final Recommendation 

AELER Technologies is a disruptor that will transform the maritime shipping industry. With huge demands for tech innovation and sustainable advancements, AELER is positioned to capture significant market share. The estimated market share for data solutions alone in the maritime logistics industry is $900 million (AELER Pitch Deck). Additionally, AELER is a firm that is filled with people that fulfill AMDP standards and both their innovative product and company affiliations prove that. Seize the opportunity to invest in this company before it is too late.

Best,
Daniel Leung, AMDP Research Analyst

Works Cited

“Aeler Technologies - Crunchbase Company Profile & Funding.” Crunchbase, https://www.crunchbase.com/organization/aeler-technologies-sa.

Aeler.com, https://www.aeler.com/.

“The Effects of Climate Change.” NASA, NASA, 2 Mar. 2023, https://climate.nasa.gov/effects/.

Miller , Kelsey. “The Triple Bottom Line: What It Is & Why It's Important.” Business Insights Blog, Harvard Business School, 8 Dec. 2020, https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line.

Nagurney , Anna. “A Brief History of the Shipping Container.” The Maritime Executive, 30 Sept. 2021, https://maritime-executive.com/editorials/a-brief-history-of-the-shipping-container.

Oehrli, Pierre-Yves. “Aeler Technologies Unveils Its Container of the Future.” Switzerland Global Enterprise , 17 Aug. 2021, https://www.s-ge.com/en/article/news/20213-logistics-aeler-technologies-unveils-its-container-future.

Petersen, Ryan. “Obsolete Tech Is Clogging up Global Trade. Here's How to Unblock It.” World Economic Forum, 9 Aug. 2021, https://www.weforum.org/agenda/2021/08/global-trade-supply-chain-technology-infrastructure/.

“Review of Maritime Transport 2022.” UNCTAD, United Nations, https://unctad.org/rmt2022.

Savvides, Nick. “Unifeeder Commercial Director Johnson Tan Joins Smart-Box Builder Aeler.” The Loadstar, 10 Feb. 2022, https://theloadstar.com/unifeeder-commercial-director-johnson-tan-joins-smart-box-builder-aeler/.

Selin, Noelle. “Carbon Footprint.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., https://www.britannica.com/science/carbon-footprint.

“Social Enterprise.” Corporate Finance Institute, 15 Dec. 2022, https://corporatefinanceinstitute.com/resources/esg/social-enterprise/.

“Solar Impulse Foundation: Clean and Profitable Solutions for the Environment.” Solar Impulse Foundation, https://solarimpulse.com/.

Tambe, Neesha A. “Aeler Wins the TC Sessions: Climate Virtual Pitch-Off.” TechCrunch, 21 June 2022, https://techcrunch.com/2022/06/21/aeler-wins-the-tc-sessions-climate-virtual-pitch-off/.

“Unit-One.” Green Business Award, 9 Feb. 2022, https://greenbusinessaward.ch/en/nominierte/unit-one/.

“What Is CSR?” UNIDO, United Nations Industrial Development Organization, https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr.

“World First at Intermodal Europe 2022: Aeler Unveils Its Smart, Composite Container That Cuts Operational Costs and CO2 Emissions by 20%.” Tank News International, 10 Nov. 2022, https://tanknewsinternational.com/world-first-at-intermodal-europe-2022-aeler-unveils-its-smart-composite-container-that-cuts-operational-costs-and-co2-emissions-by-20/.