HCI’s Commitment to ESG
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.
ESG Policy Statement:
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 Express Case Study:
HCI portfolio company, MSI Express, is a provider of contract packaging and contract manufacturing of shelf-stable human and pet food. HCI partnered with 3 family-owned businesses to create the MSI Express platform which has grown from $30MM in revenue in 2018 to nearly $450MM in 2021.
Not only did HCI dramatically scale this business, but we also helped build a better business by supporting nearly $30 million in growth capital investments, infusing know how, defining a clear strategy and building a great team.
These investments not only improved the value of the business, but also had a positive impact on MSI’s environmental sustainability efforts are highlighted below.
3 Businesses
HCI partnered with 3 family-owned businesses100 Percent
MSI’s largest facility switched to 100% carbon free power10,000 Tons
MSI recycles more than 10,000 tons of cardboard annually1.2 Billion
MSI’s stick packaging capacity reduces carbon footprint by 85%Environmental
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:
- Energy Efficiency
- Recycling Programs
- New “Green” Products
Energy Efficiency:
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.