Pax Small 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 Small Cap Fund that we believe are taking advantage of sustainability-related opportunities, or taking appropriate steps to address key ESG issues:
WESCO International Inc. (WCC)
WESCO International is a supply chain solutions company serving the industrial, contractor, government, and utility markets. The company’s lighting and sustainability product category (12% of annual revenue) helps customers reduce their environmental footprint with lighting efficiency, energy management, renewable energy, and water and waste mitigation. WESCO notes that demand for these products, which include LED lighting, HVAC controls, customized solar and wind solutions, are being driven by energy efficiency and sustainability trends.
Power Integrations (POWI)
Power Integrations, Inc. (POWI) designs, develops and markets analog and mixed-signal integrated circuits and other electronic components and circuitry used in high voltage power conversion. We believe the company is well positioned to take advantage of opportunities associated with clean technology. Power Integrations’ “EcoSmart Technology” improves the energy efficiency of electronic devices during normal operation as well as standby and “no-load” conditions, helping the company’s customers meet the increasingly stringent efficiency standards that have been adopted around the world for many electronic products.
Maple Leaf Foods (MFI CN)
Livestock operations have significant environmental impact, and Maple Leaf Foods is taking steps to significantly reduce its environmental footprint. The company has set goals to reduce its GHG emissions, water consumption and waste by 50% by 2025, and it reports on its progress towards meeting those goals in an annual sustainability report available on its website. Maple Leaf Foods also recognizes the value of attracting and retaining diverse talent, and seeks to achieve 50% gender diversity at the manager level and above by 2022.
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.