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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.

Below 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.

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.

Genpact Ltd. (G)

Genpact Ltd. provides business process outsourcing and information technology (IT) management services worldwide. Human capital management is a key sustainability issue for technology companies like Genpact, and the company has renewed its focus on increasing gender diversity throughout the organization.

  • Genpact requires at least 40% or more gender diversity of participants in its Global Leadership Development programs. Women represent 24% of executives at the SVP level, and 15% of executives on the Genpact Senior Leadership Council, which is the company’s highest level of leadership.
  • Genpact has an initiative to help women returning to work after maternity leave, focused on providing and maintaining a strong organizational support system in terms of the flexibility required to successfully contribute to personal and professional goals. In January 2017, Genpact increased paid maternity leave from 12 weeks to 26 weeks.
Prologis Inc. (PLD)

Prologis Inc. (PLD) is an owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. The company also leases modern distribution facilities to customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

  • Prologis has integrated sustainability design standards into its buildings for more than 10 years. Features include the use of energy and water reduction technologies, higher quality insulation, lighting upgrades and clean energy, which lower operating costs for customers.
  • The company has also developed brownfield and infill sites. As necessary, Prologis remediates environmental contamination, puts abandoned land to higher and better use and enhances or builds new infrastructure.
  • Prologis was among the first in its industry to invest in rooftop solar. In 2017, Prologis added 10 megawatts of solar capacity to its portfolio, bringing the total to 175 megawatts, enough energy to power 26,000 average U.S. homes each year.
  • The company’s 2017 Sustainability Report includes detailed information on performance and process towards its goals, which are aligned with the UN Sustainable Development Goals. For example, Prologis is in the process of setting science-based targets to address climate change and has the goal of installing 200 megawatts of solar generating capacity by 2020.
Waste Management, Inc. (WM)

Waste Management, Inc. (WM) provides waste management services including collection, transfer, recycling, resource recovery and disposal services, and operates waste-to-energy facilities.

  • Waste Management provides industry leading disclosure, and its 2016 Sustainability Report and 2017 Sustainability Report Update includes detailed information on progress toward its 2020 goals.
  • The company has set ambitious carbon intensity reduction targets and monitors its performance in reducing emissions, including potential avoided greenhouse gas (GHG) emissions from multiple sources.
  • Waste Management is transitioning its truck fleet to natural gas to reduce emissions. Innovative projects include methane emissions capture, next generation landfills with accelerated decomposition technology, and re-processing and recycling of older landfills.
  • The company is implementing programs to improve energy efficiency and to expand its commitments to the use of solar energy.

Mid Cap Fund Top Ten Holdings
(As of 10/31/2018)

Holdings are subject to change.