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At Pax World, we seek to address climate change through four core approaches focused
on mitigating risk, uncovering opportunities and creating positive impact across our funds:

AVOID CLIMATE CHANGE LAGGARDS

Pax excludes the biggest carbon emitters including companies significantly involved in coal, tar sands oil and utilities that are over-reliant1 on coal.

BENEFIT

Coal combustion accounts for 45.9% of the world’s CO2 emissions per the latest global statistics.2
Avoiding climate change laggards helps reduce portfolio emissions as well as portfolio risk.

PAX SPOTLIGHT

The Pax Global Environmental Markets Fund is a fossil-fuel free fund that avoids companies significantly involved in the extraction and/or refining of fossil fuels (coal, oil or gas).


1 Utilities whose reliance on coal is above the national average, 30% in 2016 according to the U.S. Energy Information Administration, are excluded from Pax portfolios.
2 Source: Key world energy statistics 2016, International Energy Agency

MEASURE PORTFOLIO EMISSIONS

Where it can be measured, Pax reports on the carbon intensity1 of our portfolios in our annual Impact report. As a result of our ESG integration process, Pax funds will generally have weighted average carbon intensity below or significantly below their benchmark indices.

BENEFIT

Companies with lower carbon intensity are better able to mitigate regulatory, litigation and reputational risks posed by climate change.

PAX SPOTLIGHT

The Pax ESG Beta Quality Fund and Pax ESG Beta Dividend Fund target a minimum of 30% lower carbon intensity than their benchmark, the Russell 1000 Index.


1Carbon intensity measures tonnes of CO2 emitted per $1 million of revenue.

INVEST IN CLIMATE CHANGE SOLUTIONS

Some of our funds proactively focus on investing in companies that provide solutions to climate change.

BENEFIT

Clean energy, resource efficiency and low-carbon solution providers will help lead the transition to a sustainable global economy.

PAX SPOTLIGHT

The Pax Global Environmental Markets Fund invests in companies that are developing innovative solutions to resource challenges.
The Pax Core Bond Fund holds green bonds that specifically target positive impact in such areas as energy and sustainable infrastructure.

ENGAGE TO REDUCE COMPANY EMISSIONS

Pax climate change engagement primarily focuses on the following issues:

  • greenhouse gas reduction targets
  • emission and risk disclosure
  • renewable energy sourcing & production
  • carbon asset risk
BENEFIT

Shareholder engagement persuades companies to adopt higher standards when it comes to reducing emissions and mitigating climate change.

PAX SPOTLIGHT

Pax engages with companies in the most carbon-intensive sectors, asking management to:

  • Track and report on their greenhouse gas emissions
  • Establish emissions reduction targets compatible with limiting future warming to 2⁰C
  • Assure that their boards are “climate competent”

Learn more about our engagement and advocacy on climate change issues.