The Pax World Global Environmental Markets Fund (PGRNX) invests in companies around the world that are developing innovative solutions in the areas of energy (renewable energy and energy efficiency), water (water infrastructure and technologies, pollution control), waste (waste management and technologies, environmental support services) and sustainable food and agriculture. We believe the leading companies in these markets are fast becoming major drivers of global economic growth. The following are examples of these companies:
- Kingspan Group Plc (1.9%*)
- Sealed Air Corporation (1.4%*)
- Delphi Automotive Plc (2.8%*)
- Legrand SA (2.5%*)
- Stericycle, Inc. (2.7%*)
- Murata Manufacturing Co. (2.4%*)
Kingspan Group Plc
Kingspan Group Plc is a global leader in high performance insulation, building fabric and solar integrated building envelopes. The focus of the company is on high efficiency, low cost and low carbon building solutions across a range of market sectors. It manufactures insulated panels and boards, structural products such as farming and metal facades, architectural facades, raised access floors, engineered timber systems, solar thermal hot water systems and fuel and water storage solutions. Kingspan acquired ThyssenKrupp Construction in 2012 and has been a very active consolidator both in Europe and also in the US, where there is a large potential market as penetration of their technology is much lower than in the EU. Kingspan's track record on finding, executing and integrating acquisitions has been excellent. The company is recognized in the construction industry for its commitment to innovation, design, quality and technical expertise, with sustainability at its core. Long term drivers are increasing demand and legislation for high performance insulation materials supporting building energy savings and Co2 reductions. This should bode well for Kingspan's improving market penetration.
Sealed Air Corporation
Founded in 1960, Sealed Air Corp. is a food safety and security, facility hygiene and product protection company. It serves an array of food and beverage processing, food service, retail, health care and industrial, commercial and consumer applications. The Food & Beverage segment focuses on providing processors, retailers and food service operators a broad range of integrated system solutions that improve the management of contamination risk and facility hygiene during the food and beverage production process, extend product shelf life through packaging technologies, and improve merchandising, ease-of-use, and back-of-house preparation processes. The company is a leader in technologies that keep food fresher, better tasting and more accessible to people around the globe, ranging from fresh items such as dairy and produce to snacks and beverages. Relying on technology driven sustainable solutions, Sealed Air’s Diversey Care Products division is a leading provider of cleaning and hygiene products to the institutional marketplace worldwide. Sealed Air Corp also produces a broad range of innovative packaging solutions that provide cost-effective protection for a many different types of shipped goods.
Delphi Automotive Plc
Delphi Automotive is a global vehicle components manufacturer, providing electrical and electronic, active safety and thermal technology solutions to the global automotive and commercial vehicle markets. The company is a global leader in direct fuel injection systems for the automotive industry, facilitating lower CO2 emissions with 15% improvements in fuel efficiency. The company operates in four segments: (1) Electrical/Electronic Architecture involving the complete design of the vehicle's electrical architecture, (2) Powertrain Systems which provide integration of full end-to-end gasoline and diesel engine management systems, (3) Electronics & Safety providing critical components, systems and advanced software for passenger safety as well as vehicle operation, and (4) Thermal Systems comprising cooling and heating, ventilating and air conditioning systems.
Legrand SA specializes in the design, manufacture and distribution of products and systems for electrical installations and digital building infrastructures, many of which are designed to optimize energy use, minimize greenhouse gas emissions and reduce materials. Some of the clean technologies Legrand offers are electricity measurement devices, efficient lighting and heating management, efficient transformers for buildings and electric vehicle recharging stations. Legrand reports that with its lighting management systems and presence detectors, users can trim their power bills by as much as 55%. In addition, Legrand's electric and digital building infrastructure is used in smart grid networks to facilitate data exchange to optimize energy consumption.
Stericycle provides waste management and complementary services to a wide range of industries. Stericycle’s Sharps Management Service, which provides reusable containers to clients, has prevented more than 73 million plastic containers from ending up in landfills. The company’s pharmaceutical waste disposal program helps healthcare industry clients properly dispose of pharmaceutical waste. Stericycle has also implemented waste management programs to help clients properly segregate their waste streams, which reduces the need for incineration. As a result of these efforts, Stericycle says that approximately 10% of the company’s U.S. treatment capacity is incinerated, down from more than 30% in 2001.
Murata Manufacturing Co.
Murata Manufacturing was established in 1944 as a ceramic capacitor manufacturer. Based on its superior ceramic process technology, Murata has earned a strong market share in the global ceramic capacitors & filters markets. Murata is now diversifying into super-capacitors and other ceramic-based wireless module businesses, which can significantly increase the energy efficiency of these devices. This makes Murata an industry innovator and a leader in advanced components that reduce: material use (through miniaturization), heat loss, electricity usage and production waste. Backed by good cost management, Murata has consistently maintained high margins. It is also aggressive on dividend increases and share buy-backs. Earnings should continue to grow due to opportunities in the smartphone market, tablet market growth and yen depreciation. The firm is also a leader in environmental reporting, general CSR programs, and in the development of advanced “Eco-friendly Products”.
*Pax World Global Environmental Markets Fund holding as of 3/31/14. Holdings are subject to change.
This information is not a recommendation to buy or sell any security.