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:
- Delphi Automotive Plc (2.7%*)
- Legrand SA (2.2%*)
- Stericycle, Inc. (2.9%*)
- Watts Water Technologies, Inc. (2.4%*)
- Murata Manufacturing Co. (3.0%*)
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.
Watts Water Technologies, Inc.
Watts Water Technologies is the global market leader in high efficiency 'behind the wall' water flow products, providing water quality, conservation, safety and flow control products for the new build and retrofit residential and commercial markets. The company manufactures innovative products to control the efficiency, safety, and quality of water within residential, commercial and institutional applications.
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 9/30/14. Holdings are subject to change.
This information is not a recommendation to buy or sell any security.