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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:

Comfort Systems USA, Inc. (FIX)

Comfort Systems provides heating, ventilation and air conditioning system installation, maintenance, repair and replacement services.

The company’s services, such as maintenance on and replacement of existing air systems with modern, energy-efficient systems, help reduce a building’s energy costs and improve the environment within a designated area.

Comfort Systems is an Energy Star® partner, a member of the U.S. Green Building Council and employs LEED®–accredited professionals. The company also discloses information about its occupational health and safety programs. These include a focus on company-wide accident prevention that goes beyond OSHA compliance, including benchmarking and tracking of workplace safety and automobile accidents.

Watts Water Technologies, Inc. (WTS)

As a company that manufactures and provides products designed to improve energy efficiency and reduce water consumption for its customers in both commercial and residential settings, Watts Water Technologies is well-positioned for the transition to a more sustainable economy.

For example, Watts Water Technologies provides engineered rainwater-harvesting solutions, which contribute to LEED® green building certification. The company also conserves water at its sites by recycling chiller water used to cool hydraulic presses, and it has eliminated grass on premises in favor of drought-friendly plants.

Watts Water Technologies also works in partnership with the Planet Water Foundation to install water purification systems. Since 2016, the collaboration has brought clean water to 9,000 people in disadvantaged communities in China, Colombia, India, Indonesia, the Philippines and Puerto Rico.

WESCO International Inc. (WES)

WESCO offers lighting efficiency, energy management, renewable energy, water and waste mitigation, and green procurement solutions to its clients.

The company offers a range of products and services with sustainability certifications, such as ENERGY STAR, GreenSeal and EcoLogo.

WESCO reported that it has completed more than 250 lighting retrofits that are designed to save 1.2 million kilowatt hours and avoid 1,200 U.S. tons of greenhouse gases annually.

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.

Pax Small Cap Fund Top 10 Holdings
(As of 01/31/2019)

Holdings are subject to change.