At CODI, our mission is to deliver superior investment results while mitigating risk and conducting our business in a socially responsible and ethical manner.
We recognize that environmental, social and governance (ESG) issues play a critical role in the long-term success of any business in today’s market and believe that sustainability is key to continued outperformance. We believe building better businesses through effective ownership and management benefits all stakeholders, from customers to suppliers and employees to shareholders, as well as the communities in which we live and work.
With this in mind, we are deeply committed to maintaining responsible investment practices that position our businesses and our firm for long-term success. As a company, we strive to foster honesty and respect among our employees, endeavor to use resources in an environmentally conscious way, support our communities, and aim to uphold our corporate responsibilities for the benefit of our shareholders. ESG is embedded in all aspects of our investment process from the original investment selection to the subsequent value creation with a goal of continuous improvement.
CODI engages with employees and subsidiary companies to consistently pursue the spirit of these philosophies and seeks to regularly enhance these principles through open dialogue with our partners, management teams, and investors.
“CODI’s long-term ownership model, operational capabilities, and focus on building better businesses enable us to be a responsible custodian of the companies in which we invest and we take that responsibility incredibly seriously. We recognize what is at stake and believe that actively considering ESG factors in our investment process and as we support and help position our subsidiaries for long-term success, is beneficial for all of our stakeholders. ESG is and will continue to be a focus for us and we regularly evaluate ways to advance our processes, drive performance across our portfolio, and deliver sustainable value.”
Elias J. Sabo, Partner & Chief Executive Officer
As a provider of patient, growth capital for leading middle-market businesses, sustainability is embedded in our culture and strategy.
Our long-term approach, deep expertise, and commitment to stability are critical to ensuring we are an enduring and trusted partner to our subsidiary companies.
Our Permanent-Capital model enables us to invest for the long-term. Since our inception, we have added approximately $776m to our portfolio companies in add-on acquisitions. Please click on the link below to learn more about how CODI supports its Portfolio Companies growth initiatives:
We pride ourselves on our transparency and accountability, and are pleased to provide our stakeholders with more information about how we manage the most relevant sustainability issues for our business.
Our approach towards ESG is embedded in all aspects of our acquisition process from due diligence, throughout our partnership and the subsequent value creation, and should we ultimately divest of a business, we focus on ensuring a sustainable long-term ownership structure into the future.
We review the sustainability practices of a potential acquisition as part of our due diligence process, on a case-by-case basis. Our review includes (but is not limited to) the following factors:
Natural resource usage
Opportunities in renewables
WE HAVE AND WILL CONTINUE TO INVEST IN COMPANIES WITH THE FOLLOWING CHARACTERISTICS, AMONG OTHERS:
Highly defensible positions in their markets and with their customers, including evidence of leading commitments to product quality and safety, and strong customer engagement and satisfaction
Operating in industries with favorable long term macroeconomic trends, including efficiency and sustainable use of natural resources
Strong management teams with deep industry expertise as well as diverse and complementary backgrounds and skill-sets
Examples of the sustainability initiatives undertaken by our portfolio companies include:
BOA is committed to reducing the use of virgin plastic in its products, as a percentage of unit sales volume, by at least 50% within 10 years. By 2027, BOA will incorporate recycled or renewably sourced materials into 100% of products.
BOA also conducts regular surveys to ensure it is offering a world-class employee experience and a vibrant, inclusive and diverse culture. Through its exceptional compensation, benefits structure and commitment to equality, BOA attracts, incentivizes, retains and rewards talent. This is evidenced by the company‘s global employee retention rate of approximately 90%.
Introduced the first of its kind baby carrier buyback and resale program, Everlove by Ergobaby. This sustainability initiative benefits families and the planet by extending the use of Ergobaby carriers. When comparing the impacts of the materials required to make a new carrier to the opportunity to purchase a used carrier, Ergobaby estimates that Everlove carriers save up to 96% of energy use, 95% of water use and 84% of CO2 emissions.
“As a company that cares deeply about babies, it is also our responsibility to care for the planet they will inherit from us. With Everlove by Ergobaby, our commitment to quality enables us to move towards sustainability, by extending the use of our carriers and making them accessible to more families. It’s a win-win for our children and planet.”
Jason Frame, CEO of Ergobaby
Sterno announced that it is going greener with a commitment to reducing the Company’s overall carbon footprint associated with keeping food hot. The initiative, which introduces redesigned chafing fuel cans that use less steel, cardboard and non-renewable resources, aims to reduce Sterno’s environmental impact from landfill waste to greenhouse gas emissions, while still producing the same great products that customers rely on.
Sterno Products was the first manufacturer to introduce an environmentally-preferred ethanol fuel blend and the first to receive UL Validation for Indoor Air Quality – Residential and Commercial.
In addition to opening a new, state-of-the-art, LEED-certified facility in Manteca, California, 5.11 Inc has invested in a sophisticated water reclamation system for its screen-printing operations, uses LED bulbs in its U.S. distribution center and has adopted the American Apparel and Footwear Association’s Restricted Substance List. The company is also exploring the possibility and feasibility of sourcing recycled materials for its products as an alternative to using virgin materials.
Based in Baton Rouge, Marucci was founded by two former Big Leaguers and their athletic trainer who began handcrafting bats for some of the best players in the game from their garage in 2004. Today, the team is committed to sourcing timber from sustainable forests and is establishing an end-of-life, customer-facing recycling program.
Altor Solutions is enhancing its commitment to providing eco-friendly, sustainable solutions to customers and recently became the first industry player to introduce BioEPS®, a high performance protective and thermal packaging solution that is 100% sustainable, recyclable, biodegradable and reusable. BioEPS® is engineered to break down in only a few years into just methane and water, ensuring minimal environmental impact regardless of where it ends up in the waste stream.
Our team is one of our greatest assets, and investing in our people is a top priority. We strive to make working at CODI a rewarding experience and are pleased to have retained over 95% of our employees over the past four years. We provide our employees attractive compensation and benefit packages, invest in ongoing training and professional development opportunities, and monitor employee engagement and satisfaction.
We care about our employees’ health including their mental, physical, and social well-being. On an on-going basis, we implement programs that are geared towards making a positive contribution to our employee’s health. Our benefits are inclusive, and many of them are also available to our employee’s partners and children.
Our benefits include:
Health Saving Account
Monthly physical fitness reimbursement
Short-term and long-term disability insurance
Pay for performance
Discretionary annual bonus
Paid vacation and holidays
Occasional early office closings
Flexible work arrangements
CODI is committed to providing equal employment opportunities to all employees and applicants for employment and prohibits discrimination and harassment of any type based on race, color, religion, age, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression, or any other characteristic protected by federal, state or local laws.
All employees have the ability to request reasonable accommodations at the office if required due to a disability, religious requirement, pregnancy, childbirth, or a related medical or common condition related to pregnancy or childbirth, or other reasons. Possible reasonable accommodations may vary depending on the circumstances. Whatever the reason may be, we support our employees and will always strive to accommodate them in any way we can.
EMPLOYEE TRAINING AND DEVELOPMENT
CODI is committed to offering learning and professional development opportunities to help advance our employees’ careers.
All CODI employees are required to complete registered investment advisor training, which includes insider trading policies and procedures, as well as our code of ethics.
CODI conducts an annual review/evaluation process which allows employees to receive direct feedback from senior team members.
CODI continually monitors culture and employee engagement, through both formal and informal processes.
We take a proactive approach to monitoring employee engagement and morale. We have implemented an anonymous employee survey. The first survey was conducted in 2021. 100% of employees participated and confirmed that they feel valued and respected as a Compass employee. We will conduct the survey on a bi-annual basis, and we will use the results to inform our human capital strategy, and continuously improve and adjust to meet the changing needs of our team.
CODI has a history of engaging with the communities where our employees live and we remain committed on continuing to be a trusted partner in the communities where we operate.
CODI supports several community organizations, including: