ClimateSparkSocial Venture Challenge

PREPARINGTHETRAILPreparing the Trail is a grass-roots, environmentally active, not-for-profit organization that uses the power of sport to educate and empower a growing movement of environmental trendsetters.

Our mission is to reduce society’s climate impact while improving the wellbeing of our communities by making it fun, easy, and affordable for any individual, business or organization to offset their environmental footprint.

Our vision is to build an active movement that will accelerate our development towards stronger, more sustainable, and healthier ecosystems for future generations to enjoy.

PREPARINGTHETRAILPROBLEM• Difficulty integrating social and environmental responsibility• Companies face long term competitive risk• Education & Trust• Lack of domestic high quality/charismatic carbon offsets

SOLUTION • Combine forest protection & community enhancement • Carbon offsets & CSR • Easy & affordable to reduce/offset environmental footprint• Branding a Movement – Fresh, Youthful, Grassroots• NA Voluntary Offset Market - $7.85M (CAN), $151.4M (US)

THEAGENDA

Overview1. The Market2. Product/Service Overview3. Our Impact4. Go-To-Market Strategy 5. The Team6. Achievements/Milestones7. Our Partners8. Our Key Customers9. Competition10.Financials11.Investment Highlights

THEMARKETCarbon Market• Global compliance market - 8625MT ($143.3B) - 818MT ($2.73B) (NA) 1

• Voluntary Offset Market - $7.85M (CAN) – 11 projects, $151.4M (US) 1

• Pre compliance market in Canada (types, WCI, scale)

CSR Market• BSR Report: 63% respondents see climate change as most important CSR priority• 94% companies plan to maintain or increase CSR budgets• 84% optimistic that global business will embrace CSR/sustainability as part of core strategy over 5 yrs.2

The Market Niche• Corporate CSR programs• Athletic/Events/Promotional Vertical - Voluntary• Commercial Buildings Offsetting – (LEED Buildings) e.g. Bullfrog Power

1 State of the Voluntary Carbon Markets 2010. Ecosystem Marketplace2 BSR/GlobeScan State of Sustainable Business Poll 2010” (377 professionals – NGO, Govmnt etc.)

THEMARKET SHARE• Global offset transactions nearly doubling each year• Global Market - $144B in 2010 (total compliance & voluntary)3

320

2

3 Year -Voluntary (NA-M$)

Voluntary Market PTT Share

5600

5.5

5 Year - Voluntary & Compliance (NA–M$)

Voluntary & Compliance mar-ket PTT Share

1% NA Share in 3yrs. 0.1% NA Share in 5yrs.

3 State and Trends of the Carbon Market 2010. World Bank Group.

THEPRODUCTENVIRONMENTAL • High quality charismatic carbon offsets (voluntary / compliance) • Resale vs. “in-house” project portfolio• Scalable (Individuals -> Business -> Government)• Athletic niche (e.g. MLB)

SOCIAL• CSR targeting environmental education, health promotion, community impact• Selling a Brand• Community engagement, differentiation, part of a growing social community• High Social ROI (8:1 SROI in 2010)4

COMPETITIVE ADVANTAGE• Social enterprise with 501(c) – tax receipts issued / offsets retired• e.g. Carbonfund.org

4 PTT2010Social Valuation Report. Social Asset Measurements (SAM).

OURIMPACTCASE STUDY

Competitors Solution:1. Offsetting Company A -> Company B purchases offsets from Company

A –> end of transaction. 

Our Solution:2. PTT(Social Enterprise with 501(c) status) – Charismatic offsets3. Company B offsets with PTT and receives a tax receipt for their

donation to offset a corporate event –> PTT retires the offsets. 4. Company B works with PTT marketing program to partner/sponsor a

future PTT planting/athletic event5. PTT uses revenues to build community programs (i.e. community

planting event, sustainable trail build)6. PTT promotes sustainable reforestation programs & accumulate

an inventory of high quality offsets

THETEAMMike Edwards • UWaterloo Honours BAsc. Mechanical Engineering, 2008• 4 years PM experience, environmental assessments, EIT, PEng. Jan.2012• LEED Sustainability Consultant/PM – Enermodal Engineering• Founding Director Preparing the Trail

Trevor Gilbert• University of Waterloo Environment & Business, Economics minor 2007• 3 Years as an environmental consultant implementing emission reduction programs• LEED Accredited Professional• GHG Accounting Training through the GHG Management Institute• Founder of EnvironmentalXC and GreenMetrx, Director Preparing the Trail

Stu Munro• Honours School of Industrial Design, Carleton University 2007• 5 years research and idea generation, rending, graphic design, CAD modeling• Hyundai – Project manager environmental industrial products • Founder Sweat Project, Sole proprietorship/freelance designer• Founding Director Preparing the Trail

 

THETEAMBoard of Advisors/Directors

Kunal Gupta – President, Polar MobileJosh Wiwcharyk – Entrepreneur in Residence, George Brown

GO-TO-MARKET STRATEGY• Unique Value Proposition – branding a movement, athletics, CSR, charity• Grassroots in nature• Carbon neutral events• Piggybacking off of current off-road recreational events• Targeting outdoor athletes, environmentalists, CSR market• Seasonal inventory/project development• Direct sales – internal sales & marketing team, • Leveraging the power of social marketing/social community/website • 5% allocated to sales/marketing• Pro-bono in-kind big part of strategy

THEACHIEVEMENTS&MILESTONESWith $30k raised, we have:• Registered federally and provincially October 2009• Pilot program – Preparing the Trail 2010• Planted 350+ trees across Canada• Social community – 42 unique athletes, expanded community outside of friends & family – 20+ events, volunteers base, carbon tracking• Distributed and sold 2300+ saplings into the community• Raised $3000 for charity (Right to Play/Trees Ontario)• 8:1 Social ROI in 2010 • Management team in place• Government, media, environmental, athletic, funding, charitable partners & sponsors in place• Development of a social website – launching spring 2011

OURPARTNERS

OURKEY CUSTOMERSPromotional Tree Sales – Plant-it-Forward Program:

• BULLFROG POWER • DISCOVERY CHANNEL / CTV• CONSERVATION HALTON• VMWARE CANADA• SCOTIABANK• HYDRO ONE• TOWN OF MILTON• 5 PEAKS TRAIL RUNNING SERIES• CHICO RACING INC.• LANDMARK SPORT GROUP (Mississauga/Oakville Marathon)• Individual events (weddings, corporate functions etc.)

THECOMPETITIONDirect:ERA, Carbon Friendly Solutions, Carbonfund.org

Indirect:Carbonzero, Zerofootprint, Bullfrog Power

Similar OrganizationsRight to Play, Athletes for Africa, charitable teams (Joe’s Team for Princess Margaret)

PTT - Dynamic blend of social and environmental

THETARGET MILESTONESWith $100k in funding we will:• Study & confirm the external operating environment• Create a organizational framework• Increase organizational capacity & performance• Engage outside stakeholders (GHG certified bodies, partners etc.)• Sales & Marketing Team – (Current team – expansion January 2012)

Spring/Summer 2011• Business plan • Charitable status• Social website launch• Commitment from advisory team • Further grants & grant writer

• 1 Year (2011-2012) – 200k• 3 Year (2013-2014) – 2M (Cash flow positive)• 5 Year (2015-2016) – 5.5M

THEFINANCIALS• Seeking $100k

• First 2 years – infrastructure, marketing/sales, events, partnerships• Tipping year 2013• compliance market/voluntary growing• Development of project portfolio

• Philanthropy/In-kind donations/Social Investment Market – 2013+

2011 2012 2013 2014 2015 2016

Revenue 75k 100k 1M 2M 3.3M 5.5M

Expenses 100k 102k 500k 750k 800k 1M

Net Income

(25k) (2k) 500k 1.25M 2.5M 4.5M

THEHIGHLIGHTSPROBLEM• Difficulty integrating social and environmental responsibility• Companies face long term competitive risk• Education & Trust• Lack of domestic high quality/charismatic carbon offsets

SOLUTION• Combine forest protection & community enhancement while making it easy & affordable to reduce/offset environmental footprint

• Dynamic combination of community involvement, entrepreneurial spirit, technical expertise, and passion for the cause• Key Milestones – Business registration, team in place, 31k raised • Ahead of the competition - PTT + Environmental XC, Green Metrx• Strategic alliances: Right to Play, Trees Ontario, Conservation Halton, TRCA, Bullfrog Power, CTV/Discovery, Enermodal Engineering, Tridel Developments