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) and waste (waste management and technologies, pollution control). We believe the leading companies in these markets are fast becoming major drivers of global economic growth. The following are examples of these companies:
- GEA Group AG (2.9%*)
- Legrand SA (1.9%*)
- Stericycle, Inc. (2.5%*)
- Xylem, Inc. (3.0%*)
- Pall Corp. (3.4%*)
GEA Group AG
GEA is an engineering firm that designs process technology and components for companies with demanding production processes. Approximately 70% of the company’s revenue is from the food and energy industries. The company helps its customers, which typically have energy-intensive processes, reduce energy consumption, waste generation and emissions levels. For example, the company’s separators and decanters are used to treat industrial and municipal wastewater by removing water from sludge, decreasing disposal costs and reducing energy and water consumption.
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.
Xylem, Inc. is a water infrastructure company covering both clean and waste water applications. The company is focused on both developed markets where aging infrastructure requires upgrading, as well as emerging markets, where population growth and urbanization is increasing demand. Approximately 40% of the company's revenue comes from products which move, test and treat water, predominantly for utility/municipality customers. The remaining 60% of revenue comes from industrially focused water treatment and infrastructure applications including pumps, irrigation and testing equipment, with end market customers including energy, agriculture, shale gas and construction markets.
Pall Corp. is an industrial engineering company that provides solutions to complex filtration, separation, purification and contamination control problems. These products enable better control over the purity and quality of food and water, as well as protecting people from harmful pathogens or substances in waste streams. Over one-fourth of Pall’s business is in filtration for biopharmaceuticals, which helps such companies develop new therapies and treatments for diseases. Another 20% of its business is in energy and water, helping to assure the purity and desalination of drinking water and reduce emissions and waste.
*Pax World Global Environmental Markets Fund holding as of 9/30/13. Holdings are subject to change.
This information is not a recommendation to buy or sell any security.