The Benefits of ESG
Pax World mutual funds seek to invest in companies with sustainable
business models. To identify those companies, we combine rigorous financial analysis with equally rigorous environmental, social and governance (ESG) analysis.
The inclusion of ESG criteria in our investment process results in an increased level of scrutiny that helps us identify better-managed companies, and construct portfolios with better long-term investment prospects.
Environmental
Our environmental criteria include such issues as air and water emissions, recycling and waste reduction, use of clean and renewable energy, climate change initiatives, and other policies and practices focused on attaining and promoting environmental sustainability.
Social
Our social criteria examine companies from three different perspectives – workplace and supply chain issues, product integrity and community involvement.
Governance
Our governance criteria include such issues as executive compensation, board structures, actions and charters and the protection they afford to the interests of both shareholders and stakeholders.
CLICK HERE TO LEARN MORE ABOUT THE IMPACT OF ESG FACTORS ON FINANCIAL PERFORMANCE
The issues highlighted above are illustrative and do not necessarily reflect the full range of the social, environmental or governance criteria Pax World may apply in analyzing a particular security for investment. The availability of information about a company, issues associated with a particular industry, changing social conditions or other circumstances may affect the manner in which Pax World’s sustainability criteria are applied in a particular situation.
Companies in which our Funds invest do not necessarily meet exemplary standards in all areas of Pax World’s environmental, social and governance criteria, nor, we recognize, is any company perfect when it comes to corporate responsibility or sustainability. At Pax World, we nonetheless believe that our shareholders seek to invest in companies that adhere to positive standards of corporate responsibility. Our environmental, social and corporate governance criteria are designed to assist us in identifying those investments. We also believe that well-managed companies that maintain good relations with employees, consumers, communities, and the natural environment, and that strive to improve in those areas, will in the long run better serve investors as well.
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.