Company Examples

At Pax World, we fully integrate environmental, social and governance (ESG) factors into investment analysis and portfolio construction. The result, we believe, is an increased level of scrutiny that helps us construct investment portfolios made up of better-managed companies that are leaders in their industries, meet positive standards of corporate responsibility and are more focused on the long term.

Here are companies in the Pax Large Cap Fund that we believe are taking advantage of sustainability-related opportunities, or taking appropriate steps to address key ESG issues:

Apple (AAPL)
The information technology industry has a well-known gender gap, spanning all professional levels – from entry level positions to C-suite and boardroom executives. After engaging with Pax World on the issue of gender pay equity, Apple conducted a gender pay equity assessment for its U.S. employees in 2016 and reported it has achieved pay equity by gender for employees with similar roles and performance. The company has committed to expanding its pay analysis to include employees worldwide. Electronic waste is another material issue for information technology companies, and Apple’s reuse and recycling programs help reduce the environmental impact of its products. As a result of these efforts, the company has kept more than 597 million pounds of electronic waste out of landfills since 1994.

Microsoft (MSFT)
With expanding IT infrastructure and the growth of cloud based services, managing carbon emissions and energy use from servers and data centers is a key issue for information technology companies. Microsoft has been carbon neutral across all its operations, including its data centers, since 2012. The company uses leading energy saving technologies and hardware in its data centers, and is also using server virtualization and consolidation technologies to reduce the number of physical servers.

Thermo Fisher Scientific (TMO)
Thermo Fisher Scientific’s stated mission is to enable its customers to make the world healthier, cleaner and safer. To that end, the company develops, manufactures and sells a range of products including analytical instrumentation and services focused on the areas of air quality monitoring, radiation safety, water analysis and soil analysis.

We are encouraged by the progress of these companies as they make their operations more sustainable, but we recognize that more can be done. That’s why we engage with companies on sustainability issues, and ask for information about policies, programs and performance data.

Pax Large Cap Fund Top Ten Holdings as of 05/31/2017:
Apple, Inc. 5.80; Microsoft Corp. 4.90;, Inc. 4.10; Chubb Corp., The 3.90; Berkshire Hathaway, Inc., Class B 3.30; Alphabet, Inc., Class A 3.00; Alphabet, Inc., Class C 2.90; PepsiCo, Inc. 2.90; Stanley Black & Decker, Inc. 2.80; Ingersoll-Rand PLC 2.80;