Pax Large Cap Fund 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:
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. Managing carbon emissions and energy use from servers and data centers is also a key issue for information technology companies. One hundred percent of the electricity Apple uses to power its data centers, and 96% used by its facilities worldwide, comes from renewable energy sources.
Sustainability is central to Ingersoll-Rand’s strategy, and the company stands out for its strong position in energy efficient heating, ventilation and air-conditioning systems. Ingersoll-Rand’s “EcoWise” portfolio of products is designed to lower environmental impact with next generation, low global warming potential refrigerants and high efficiency operation. The company has set targets to improve its performance on key sustainability issues, such as reducing the greenhouse gas refrigerant footprint of its products by 50% by 2020 and incorporating refrigerant alternatives with lower-global warming potential across its product portfolio by 2030.
Cisco Systems (CSCO)
Electronic waste is a key issue for information technology companies, and Cisco’s product end-of-life programs help reduce the environmental impact of its products. During 2016, Cisco refurbished, resold, reused, or recycled over 12,609 metric tonnes of returned products. The company is also taking a comprehensive approach to human capital development, through its “Our People Deal” along with programs focused on attracting diverse talent and a commitment to advancing pay parity through regular testing and monitoring of pay data.
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.
Holdings are subject to change.