Written by: Terry Link
Primary Source: Possibilitator
Parkin, The Positive Deviant, p.133.
Fast forward to the “Sustainability Update” section in the June 30, 2013 Pax World Mutual FundsSemi-Annual Report. Here VP for Sustainable Investing, Dr. Julie Gorte (an MSU alum!) discusses their efforts to “benchmark our funds with respect to their carbon emissions. This means we calculated how much of the greenhouse gas (GHG) emissions of the firms in our investment portfolios Pax World “owns,” based on the percentage of the firm’s stock held in our funds. Carbon benchmarking measures an investment portfolio’s carbon intensity or carbon footprint, which is total metric tons of carbon emissions per million dollars of revenue of the companies in the portfolio.” (p.36)
When they did this they found that of their five largest equity funds, four of them were less carbon intensive than their benchmark indexes. But they didn’t stop there. They made their Global Environmental Markets Fund carbon neutral, by purchasing verified carbon reduction offsets based upon the emissions portion they own of the companies in their portfolio. Not only are they now tracking them but with an eye towards their reduction in each sector of investment.
By the way the performance of their fossil free Global Environmental Markets Fund was up 23% for the past year and 13% over the past three years. Now if we could only get universities and other institutional investors to listen to Parkin and Gorte, maybe we could build a more sustainable profit one that we could all share in.