We believe environmental, social, and governance (ESG) principles are key facets of our value creation playbook. These principles are deployed among our portfolio companies and are core to how we add value and elevate our companies to have a positive impact on society.
HCI strives to be an agent of change. We use our investment model to implement effective governance, meaningful social engagement and positive environmental stewardship across our portfolio and communities which can lead to better outcomes for all stakeholders.
Our process includes an integrated evaluation of ESG factors and measures to address opportunities and risks. We recognize that ESG issues can meaningfully affect investment performance, and consideration of these factors are critical components of our integrated diligence, underwriting and ongoing value creation process.
MSI’s customers, major Consumer Packaged Goods (CPG) players, have made significant commitments for carbon footprint reductions and/or net zero climate targets.
MSI needed to reduce its own environmental impact and create differentiation through future sustainability initiatives to maintain its reputation as a leader in the industry.
MSI’s environmental initiatives focused on three major themes:
MSI deployed nearly $3.2M of capital and saved nearly 10% of its electricity usage through LED lighting upgrades, replacing end of life HVAC systems, adding variable frequency drives to motors and reducing compressed air leaks.
These projects led to a reduction of nearly 3,000 metric tons of CO2 equivalent per year while improving safety, reducing maintenance and improving comfort for the team. Furthermore, MSI’s largest facility in Grand Prairie, TX, switched its procurement strategy to 100% carbon free power, saving 2,500 carbon dioxide equivalent tons per year.
With the visibility provided by a common enterprise resource planning (ERP) system across all its facilities, MSI was able to implement a system wide recycling program.
This initiative has allowed MSI to recycle in excess of 10,000 tons of cardboard and nearly 100 tons of plastic annually. In 2021, MSI also partnered with Quincy Recycling and Quincy Farm Products to further drive recycling efforts and deliver applicable food waste to local farms.
Beverage companies have undergone efforts to transition away from single use plastic, glass or aluminum bottles to stick packaging (beverage in powdered form). This packaging format is much more environmentally friendly because it not only reduces the carbon footprint by over 85% versus a recycled plastic bottle, but also dramatically reduces the required transportation footprint.
MSI has invested heavily in this filling capacity to become one of the leading independent stick packaging providers in the US with capacity approaching 1.2 billion sticks in 2022. At this scale, MSI’s stick packaging lines results in a reduction of over 120,000 carbon equivalent tons compared to traditional bottling solutions.