Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Gender Diversity
• Pay Equity
• Environmental Stewardship
• Community Involvement
• Corporate Governance

Environmental Achievements

• Partnered with Native Energy to offset carbon footprint (business travel, employee commuting, building energy use)
• Partnered with Bonneville Environmental Foundation to offset water consumption
• Implemented policies to minimize office supply use and maximize recycling
• Implemented composting program at Portsmouth, NH office
• Reduced electricity consumption through IT policies (Active Directory, server virtualization)

Social Achievements

• 47% of total workforce composed of women in 2017
• Majority of management committee composed of women
• Employees completed anti-sexual harassment training in 2017
• Offered generous family and medical leave policy (up to 12 weeks paid leave)
• Provided $2,000 towards purchase/lease of hybrid/electric vehicle
• Offered up to $5,000 in adoption expenses reimbursement
• Provided four paid volunteer days per year
• Matched employee charitable donations up to $250 annually

Governance Achievements

• Six of eight trustees on each board of Pax World Funds Series Trust I and III are independent
• Board nominating committee charter prioritizes diversity (race, gender, culture, thought, geography)
• Established CSR Committee to oversee sustainability efforts
• Established policies regarding AML, insider trading, communications, whistleblowing, and 'pay-to-play' rules

Climate Goals & Targets

Environmental Challenges

• Increasing GHG emissions from business operations (primarily business travel)
• Lack of sufficient, accurate information on carbon intensity for Core Bond and High Yield Bond Funds

Mitigation Strategies

• Offsetting GHG emissions through carbon offset program
• Exploring options to reduce GHG emissions trajectory (CommuteSMART program)
• Using carbon intensity data from MSCI to inform climate change strategy
• Actively managed portfolios exclude coal and tar sands companies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Pax Global Environmental Markets Fund
• Pax Ellevate Global Women’s Leadership Fund

Awards & Recognition

• #9 Best Company to Work For (Business NH Magazine)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Scarcity
• Environmental Pollution

Environmental Achievements

• Improved metrics across renewable electricity generated, water treated, saved or provided, and materials recovered/waste treated in most strategies.
• Increased efficiency of portfolio companies in providing solutions to environmental pollution and resource scarcity.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficulty in demonstrating positive impact due to improved disclosure by companies including a broader scope of emissions (Scope 3) and progress in decarbonisation of the energy mix.
• Data quality varies across portfolio companies.

Mitigation Strategies

• Engaging more actively in coming years on water and waste data to encourage companies to match carbon reporting in scale and rigor.
• Evolving methodology to adapt to improvements in data availability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Impact Management Project (IMP), UN Sustainable Development Goals (SDGs), Paris Agreement (2°C scenario)

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• 6, 9, 11, 2, 12

Strategies provide exposure to Goals 6 (Clean Water and Sanitation), 9 (Industry, Innovation and Infrastructure), and 11 (Sustainable Cities and Communities). Water strategy focuses on Goal 6. Food & Agriculture strategy focuses on Goals 2 (Zero Hunger) and 12 (Responsible Consumption and Production).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Food Production
• Resource Efficiency
• Nutrition

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Evolving consumer demands (shift towards healthier, more natural, and sustainably produced foods)
• Resource scarcity and food waste (up to one-third of food produced is lost or wasted)
• Climate change and deforestation (food production contributes to GHG emissions and deforestation)
• Pollution and environmental degradation (excessive use of chemical inputs)
• Tightening regulation (governments are implementing policies to improve food and agriculture sustainability)

Mitigation Strategies

• Investing in companies that improve food safety, promote healthy and natural food, reduce food waste, use fewer and better inputs, utilize sustainable packaging, and reduce carbon emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events impacting supply chains

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of sustainable food products and technologies

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 12: Responsible Consumption and Production

Almost one-third of portfolio revenues are aligned with SDG 2, with an additional 15% with SDG 12.

Sustainable Products & Innovation

• Plant-based meats and dairy alternatives, natural preservatives, technologies reducing chemical use in agriculture

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Water Stewardship
• Water Innovation
• Water Impact Measurement

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lack of globally agreed frameworks to measure water impact.
• Insufficient focus on water quality and pollution in existing frameworks.
• Lack of publicly available information for investors to assess real-world impacts on water availability.
• Difficulty in quantifying water savings due to diverse applications and end markets of water solutions.

Mitigation Strategies

• Developed a roadmap for investor dialogue to improve company reporting.
• Developed a water impact metric dashboard to assess relevant metrics.
• Developed a corporate water impact best practice framework.
• Advocating for improved transparency and fit-for-purpose reporting frameworks and data.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Flooding
• Sea-level rise

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of water solutions

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation

Not disclosed

Sustainable Products & Innovation

• Water meters
• Leak detection solutions
• Efficient irrigation equipment
• Water treatment technologies

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Food Production
• Water
• Waste
• Biodiversity
• Social Impact

Environmental Achievements

• Avoided GHG emissions through various strategies (quantified in tCO2e, varying by strategy; see report for details)
• Renewable electricity generated (MWh, varying by strategy; see report for details)
• Water treated, saved, or provided (megalitres, varying by strategy; see report for details)
• Materials recovered/waste treated (tonnes, varying by strategy; see report for details)
• 3,335 tonnes of healthy and nutritious food produced by portfolio companies in the Sustainable Food strategy

Social Achievements

• Developed new metrics for social impact, including healthy and nutritious food produced, student loans financed, and affordable housing units financed (see report for details)
• Alcon trained 580 doctors in phacoemulsification, resulting in more than 1.6mn procedures
• T-Mobile connected 5.3mn students through a program providing free internet services

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficulty in quantifying the environmental impact of pollution control solutions, energy efficiency investments, and food waste avoidance solutions.
• Challenges in aggregating social impact metrics due to the broad and nuanced nature of social solutions and the focus on positive outcomes rather than end impacts.
• Complexity of reporting nature-related impacts due to the lack of simple global metrics and the local and habitat-specific nature of biodiversity impacts.

Mitigation Strategies

• Developed a new methodology for calculating avoided GHG emissions by equipment rental businesses.
• Developing a proprietary Impax Social Taxonomy to classify companies and report social impact in a meaningful way.
• Ongoing dialogue with the Task Force for Nature-related Financial Disclosures (TNFD) to develop useful metrics for measuring biodiversity impacts.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services Limited

UN Sustainable Development Goals

• 2, 3, 4, 6, 7, 8, 9, 11, 12, 15

Portfolio company exposure to SDGs is summarized by strategy (see report for details). Methodology does not consider SDG 13 (Climate Action) as primarily a government-led initiative.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Nature
• People
• Governance

Environmental Achievements

• Avoided 471,760 tCO2e of GHG emissions
• Provided/saved/treated 210 megaliters of water
• Recovered/treated 48,720 tonnes of materials/waste
• Generated 429,190 MWh of renewable energy

Social Achievements

• Engaged with companies on diversity and inclusion, leading to targets for increased female representation on boards and in management
• Supported 91% of climate-related shareholder proposals
• Donated £504,933 (approximately US$677,166) to charitable causes

Governance Achievements

• Supported 77% of climate-related shareholder proposals
• Voted in 100% of meetings (excluding a temporary issue with one fund)
• Implemented enhanced control framework for proxy voting

Climate Goals & Targets

Environmental Challenges

• Limited company disclosure on geo-locations of assets vulnerable to physical climate risks
• Lack of company disclosure on physical risk liabilities and adaptation plans
• Incomplete Scope 3 emissions disclosure by US companies

Mitigation Strategies

• Petitioned the SEC to require companies to report asset locations
• Engaged with S&P 500 companies to improve physical climate risk reporting
• Published thought leadership on physical climate risks
• Advocated for ambitious climate-related disclosures in the SEC rulemaking process

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Loss or damage to assets due to extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment in climate solutions

Reporting Standards

Frameworks Used: TCFD, UN SDGs, NZAM

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Portfolio companies' activities contribute to these goals through renewable energy, resource efficiency, sustainable infrastructure, and climate solutions.