Shareowner Activism
At Pax World, we believe engaged shareowners can play an important role in improving the financial, environmental, social and corporate governance performance of the companies they are invested in. Our shareowner advocacy efforts are aimed largely at helping the companies we invest in limit their ESG-related liabilities and take advantage of ESG-related opportunities to create financial value for their shareholders. That’s why we:
- Vote shareholder proxies in accordance with our environmental, social and governance (ESG) criteria
- Engage management in dialogue on issues of concern
- Initiate or support shareholder resolutions at annual stockholders meetings aimed at persuading companies to adopt higher standards of corporate responsibility
- Support public policy initiatives that promote greater corporate sustainability, transparency and accountability
Pax World has engaged companies on such issues as:
- ESG disclosure
- Operations in zones of conflict
- Gender empowerment
- Human trafficking
- Worker safety
- Climate change
- Executive compensation
While most of our dialogues are conducted privately, we also work with other shareowners and stakeholders in broader dialogues through Ceres, the Social Investment Research Analysts Network, the Carbon Disclosure Project, the United Nations Principles for Responsible Investment and other groups.
We also engage in public policy advocacy where we believe changes in public policy are necessary to preserve or advance shareowner rights and promote better ESG performance or the more efficient and equitable performance of capital markets. For example, Pax World is a member of the Ceres Coalition and the Investor Network on Climate Risk, the United Nations Environment Programme Finance Initiatives working groups, the United Nations Principles for Responsible Investment and other groups advancing initiatives such as greater shareholder rights and improved disclosure on social and environmental factors. For example, together with several institutional investors, Pax World petitioned the Securities and Exchange Commission to provide interpretive guidance to companies for disclosure of climate risk.
The Pax World Funds’ sustainable investing policies may inhibit the Funds’ ability to participate in certain attractive investment opportunities that otherwise would be consistent with its investment objectives and other principal investment strategies.