As we release our fourth annual sustainability report, we’re proud of the progress made in developing sustainability as a core business strategy. That meant embedding it across the investment lifecycle, keeping employees (from hourly portfolio company employees to senior leaders at the firm) at the forefront of decision-making, and increasing accountability through rigorous data tracking.

In this report, we highlight sustainability at MiddleGround and across our portfolio. Some of our high-impact outcomes from our sustainability efforts this year include:

• Scope 1 & 2 emissions tracked across 100% of the portfolio
• 113M+ kWh of renewable energy consumed
• 2M+ tons of emissions avoided
• $228K in savings from efficiency improvements
• Waste, scrap, and injury risk reduced across multiple sites

Sustainability Across the Portfolio

Today, 100% of our portfolio companies track Scope 1 and 2 emissions, with several expanding into Scope 3. We added ISO 14001 certifications at 11 additional sites and formally tied sustainability performance to executive compensation. Our goal is to use sustainability to drive measurable operational value, not just check a box.

Energy, Emissions & Operational Efficiency

In 2024, our companies consumed more than 113 million kilowatt-hours of renewable electricity and avoided over 1.2 million tons of carbon emissions. It’s clear that energy efficiency is a massive opportunity, and we’re proud to say that our energy strategy is delivering results. To date, we’ve supported 21 sites in renegotiating energy contracts, and two now run entirely on green electricity. Through our partnership with Gravity Climate, companies are developing tailored decarbonization roadmaps, prioritizing HVAC upgrades, LED retrofits, and load-shifting initiatives that help lower emissions and reduce expenses.

Sustainability In Action: Case Study Highlights

We saw meaningful progress across the portfolio:

• Arrow Tru-Line reduced waste pickups by ~60% through process improvements and aligning service levels with actual facility needs.
• Plasman achieved $228K annual savings through paint line optimizations.
• Attala Steel diverted 96 tons of scrap from landfills and introduced automation to reduce injury risk.
• Race Winning Brands used drone technology to monitor emissions and conduct predictive maintenance.

Read the full report here to explore more metrics, case studies, and how sustainability is creating value across our portfolio.