Below are companies in the Pax Large Cap Fund (PXLIX) 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.
Visa Inc (V)
Visa Inc. operates a retail electronic payments network and manages global financial services. The company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.
- Visa is well-positioned to benefit from increased demand for electronic payment systems as part of the digital transformation, which creates opportunities for greater economic participation and more efficient commerce.
- Visa has taken proactive steps to enhance its network’s security infrastructure, protect customer data privacy and improve fraud detection mechanisms. The company provides regular training on privacy and data protection to all employees and has a dedicated C‑suite level executive, the chief privacy officer, overseeing data protection.
- The company provides extensive transparency around its talent management and diversity and inclusion efforts. Visa discloses data about workforce demographics and pay equity annually and has in place specific development programs for women leaders as well as a returnship program, “Ready to Return.”
Microsoft Corp (MSFT)
Microsoft Corporation develops, manufactures, licenses, sells and supports software products. The company offers operating system software, server application software, business and consumer applications software, software development tools and Internet and intranet software.
- Microsoft is well-positioned to benefit from increased demand for energy efficient IT infrastructure and services. The company is one of the largest cloud service providers globally. For customers with their own network operations, the company offers systems management software and virtualization technologies that can help improve the energy efficiency of onsite IT infrastructures and services.
- Regarding its own environmental footprint, Microsoft has been carbon neutral since 2012 and recently pledged to become carbon negative by 2030. By 2025, the company will shift to 100 percent supply of renewable energy, and by 2030 it will reduce its Scope 3 emissions by more than half through several new initiatives.
- The company provides extensive disclosure around its diversity and inclusion programs, employee demographics and pay equity. From the general manager level on up, Microsoft holds all leaders accountable by tying components of their compensation to their performance on diversity and inclusion.
Prologis, Inc. (PLD)
Prologis, Inc. 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 into its overall business strategy and actively engages with tenants and building managers to identify and change inefficient practices. For example, the company has adopted a Business Information Modeling (BIM) system that leverages artificial intelligence to help tenants monitor their energy consumption along with providing a host of property-related data and analytics.
- Regarding management of climate change risk, Prologis has set science-based GHG reduction targets and has quantitative targets to increase renewable energy capacity. The company monitors exposure to physical climate risks such as flooding, sea level rise and extreme weather events. Regional teams assess risk at the local levels and development teams incorporate design features, such as elevated dock doors, to mitigate climate-related risks specific to a region and promote resiliency.
- Prologis has a comprehensive human capital management framework in place, with oversight from the board of directors. Women comprise 52% of the company’s overall workforce, and the company reports it has made progress in increasing ethnic diversity in the organization. In 2019, inclusion and diversity was added as a bonus metric for executives.
Pax Large Cap Fund Top 10 Holdings