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.
HomeTrust Bancshares Inc. (HTBI US Equity)
HomeTrust Bancshares, through its banking subsidiary, is a federally chartered mutual savings bank that provides a range of retail and commercial banking products.
The company’s products can help people save for the future, build their wealth and obtain access to capital. In 2019, retail consumer loans comprised ~43% of the company’s loan portfolio.
The Community Reinvestment Act (CRA) requires that the Federal Reserve assess banks’ records in meeting the credit needs of the communities they serve, especially low- and moderate-income neighborhoods. Under the CRA, institutions are assigned a rating of “outstanding,” “satisfactory,” “needs to improve,” or “substantial non-compliance.” HomeTrust received a “satisfactory” rating in its most recent CRA evaluation.
In response to the COVID-19 pandemic, HomeTrust announced multiple relief programs for both individual and business customers, including payment deferrals, waived late fees, suspension of foreclosures and repossessions, access to government-sponsored lending programs as well as various other tailored solutions. The retail banking team has also proactively reached out to many customers.
Vertiv Holdings Co (VRT US Equity)
Vertiv, through its subsidiaries, is a global leader in the design, manufacturing and servicing of critical digital infrastructure technology that powers, cools and manages electronics that process, store and transmit data. Vertiv provides this technology to data centers, communication networks and commercial and industrial environments worldwide.
Vertiv’s power and thermal management solutions are designed to help customers reduce their use of energy, water and space. The company estimates that its water-free cooling systems have saved billions of gallons of water per year worldwide since their introduction in 2013, with each deployment saving 6.75 million gallons of water per year compared to open-loop water-based systems. Vertiv has also pioneered the use of system-level thermal management controls that enable thermal systems across a data center to intelligently collaborate to reduce energy consumption.
In addition to helping customers meet their sustainability goals, Vertiv has implemented processes and innovations in its own facilities to conserve energy and water and to reduce greenhouse has emissions. The company has, for example, designed and built many of its new U.S. facilities following LEED-certified standards. In the Asia Pacific region, manufacturing facilities have achieved internationally recognized certifications, including ISO 14001, ISO 50001 and OHSAS 18001.
Pax Small Cap Fund Top 10 Holdings