Pax Mid 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 a few of the companies in the Pax Mid Cap Fund that we believe are taking advantage of sustainability-related opportunities, or taking appropriate steps to address key ESG issues:
Jones Lang LaSalle (JLL)
In 2010, this real estate property manager identified a series of sustainability issues it determined were material to its business, including: use of energy and resources, development of green buildings, community and supply chain issues, and workforce diversity. According to Jones Lang LaSalle’s latest sustainability report, environmental initiatives helped reduce greenhouse gas (GHG) emissions by 247,000 metric tons of CO2 in 2015, saving clients $47 million. The company also helps design and implement renewable energy solutions for clients.
Masco manufactures, distributes and installs home improvement and building products. Pax World notes that over the past few years, the company has significantly decreased its greenhouse gas (GHG) emissions intensity, or GHG emissions per $1M of revenue. Masco previously set a target to reduce its GHG emissions intensity 10% by 2015 compared to 2007. The company exceeded the goal, reducing its GHG emissions intensity by 40%. In addition to improving the environmental performance of its own operations, Masco anticipates that increasing interest in more environmentally friendly building products will drive additional demand from builders and consumers.
Human rights is a key issue for this clothing company, which sells apparel for children and babies. To monitor compliance with its supplier code of conduct, Carter’s conducts regular audits of supplier factories. If problems are found, the company establishes a timeframe for remediation and works with the supplier to address the concerns, rather than terminating the relationship.
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.