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:
Evoqua Water Technologies Corp (AQUA US Equity)
Evoqua Water Technologies is a leading provider of products, solutions and services to ensure water quality and consistency for municipalities, industrial water users and recreational facilities. In addition, the company’s products and services enable regulatory and environmental compliance, increase efficiency through water reuse and prepare customers for next-generation demands.
Evoqua Water Technologies publishes a sustainability report, which includes information about its environmental, health and safety (EHS) processes, including its loss prevention system (LPS) and internal EHS management system. Demonstrating its commitment in these areas, the company has received ISO 14001-2015 and OHSAS 18001 certifications at multiple global locations.
The company has set a quantitative safety goal and employees have “stop work authority” to prevent accidents, both of which are considered best practices.
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 to reduce a building’s energy costs, improve comfort within a designated area and reduce greenhouse gas emissions.
Comfort Systems is an Energy Star® partner, a member of the United States 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. Further, Comfort Systems integrates safety performance into executive compensation, demonstrating its commitment in this area.
Columbia Sportswear Co. (COLM)
Columbia Sportswear designs, manufactures, markets and distributes active outdoor footwear, apparel and equipment.
The company is well-positioned to benefit from the significant growth in consumer interest in healthier and more active lifestyles. Greater health awareness is driving demand for products, and the company’s effective use of innovative materials produced using sustainable manufacturing practices is helping to reduce its impact on the environment.
Columbia Sportswear discloses a robust supply chain labor standard framework. The company’s Standards of Manufacturing Practice (SMP) address ethical sourcing and supply chain management. For example, all of the supply chain is 100 percent responsible downsourced, and in 2017, the company diverted 7,000 pounds of used clothing and footwear from landfills through its ReThreads recycling program. In addition, the company is affiliated with the Fair Labor Association (FLA), and therefore verifies compliance with labor standards on its own as well as its suppliers’ operations.
Women comprise 36 percent of Columbia Sportswear’s board of directors. Gertrude Boyle serves as chair of the board.
Pax Small Cap Fund Top 10 Holdings