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Pax Large Cap Fund Company Examples

Across all Pax World Funds, 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.

Below are companies in the Pax Large Cap Fund (PXLIX) that we believe are taking advantage of sustainability-related opportunities or taking appropriate steps to address key ESG issues.

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.

Target Corp (TGT)

Target operates general merchandise discount stores. The company focuses on merchandising operations, which includes general merchandise and food discount stores and a fully integrated online business. Target also offers credit to qualified applicants through its branded proprietary credit cards.

  • Women are well represented in leadership roles at Target, comprising 36 percent of its executive management team and 31 percent of its board of directors.
  • In 2017, the company increased its female hiring for entry-level engineering roles and is continuing to work toward its goal of 50 percent gender balance. For the second year in a row, 50 percent of the intern class will be female engineers.
  • Target is working to accelerate the transition to a low-carbon economy. In 2019, the company announced a new set of climate goals that commit to reducing scope 1, 2 and 3 greenhouse gas emissions 30 percent below 2017 levels by 2030. In addition, the company has committed that 80 percent of its suppliers will set science-based reduction targets on their scope 1 and 2 emissions by 2023. This is significant, as 96 percent of Target’s GHG emissions come from its supply chain.
Salesforce.com, Inc. (CRM)

Salesforce is a customer relationship management company that engages in the provision of enterprise software.

  • Women comprise 36 percent of Salesforce’s executive team and 25 percent of its board of directors.
  • Salesforce was among the first companies in the U.S. to publicly commit to pay equity. The company conducts regular compensation assessments and is committed to closing any unexplained pay gaps. Following its most recent analysis, the company spent $2.7 million to adjust pay for 6 percent of employees globally. Salesforce is a member of the Employers for Pay Equity coalition and a signatory to the Paradigm for Parity pledge.
  • To ensure leadership is engaged in the firm’s diversity efforts, Salesforce created a diversity scorecard, which is sent to its executive team on a monthly basis with their diversity numbers and progress.
Voya Financial (VOYA)

Voya Financial provides retirement planning, investment and insurance services. The company offers asset accumulation, protection and distribution products and services to individual and institutional customers in the United States.

  • Women comprise 50 percent of the company’s executive management team and 44 percent of its board of directors.
  • In 2018 and 2019, Voya Financial aims to further its diversity and inclusion efforts by establishing partnerships with nonprofit and industry associations dedicated to identifying diverse candidates, ensuring a diverse slate of candidates is presented for all open positions, and conducting unconscious employee bias training.
  • As part of its strategy to measure and manage the environmental impacts of its business operations, Voya Financial became carbon neutral for scope 1 and 2 greenhouse gas emissions in 2017. The company is working to develop science-based energy, waste, recycling and/or water commitments. Announcement of one or more commitments is on target for release by 2020.
Pax Large Cap Fund Top 10 Holdings
(As of 04/30/2019)

Holdings are subject to change.
PAX008545