Impax is focused on the investment risks and opportunities arising from the transition to a more sustainable economy. We examine those risks and opportunities across all regions, sectors and securities, and we integrate fundamental ESG research into all of the Pax World Funds.
We offer ten Pax funds that are fossil fuel free. By reducing exposure to fossil fuel companies, we aim to build more resilient portfolios for our investors, to reduce climate-related risks and participate in the low carbon energy transition.
By “fossil fuel free” we mean that we are not invested in:
- Companies with revenue or profits1 derived from exploration and production or refining and processing of fossil fuels (thermal coal, oil and gas).
- Companies with >5% revenue or profits derived from storage and distribution, unless the company has established itself as a leader in the transition to a zero-emissions energy economy with emission reduction targets compatible with the Paris Agreement and has agreed to publicly report on progress
- Utility power generation companies with >5% revenue or profits derived from coal, oil, or natural gas, unless the company has established itself as a leader in the transition to a zero-emissions energy economy with emission reduction targets compatible with the Paris Agreement and has agreed to publicly report on progress.
In several of our fossil fuel-free portfolios, we utilize an investment tool we call SmartCarbon™, which replaces fossil fuel holdings with energy efficiency stocks.
Pax World Funds may also include “green bonds” used to finance renewable energy or other sustainability initiatives without regard to whether the issuer would otherwise be eligible for investment.