Hamilton Point Investment Advisors, LLC · 2018-08-01 · Report Hamilton Point Investment...

2018 Global Core

Sustainability

Report

Hamilton Point

Investment Advisors, LLC 100 Europa Drive, Suite 425 (877) 636-3765

Chapel Hill, NC 27517 www.hamiltonpoint.com

Table of Contents

INTRODUCTION ........................................................................................... 1

GUIDE TO THE HAMILTON POINT SUSTAINABILITY MATRIX ........ 2

THE HAMILTON POINT SUSTAINABILITY MATRIX ............................ 4

GLOSSARY .................................................................................................... 5

HAMILTON POINT COMPANY ANALYSES……………………………. 7

ACCENTURE PLC ......................................................................................... 8

ALPHABET INC ............................................................................................. 9

AMGEN INC ................................................................................................... 10

APPLE INC ..................................................................................................... 11

APPLIED MATERIALS INC ......................................................................... 12

AUTOMATIC DATA PROCESSING, INC ................................................... 13

BECTON, DICKINSON AND COMPANY ................................................... 14

BOOKING HOLDINGS INC .......................................................................... 15

CHECK POINT SOFTWARE TECHNOLOGIES LTD ................................. 16

CHURCH & DWIGHT CO., INC ................................................................... 17

CISCO SYSTEMS, INC .................................................................................. 18

COLGATE-PALMOLIVE COMPANY .......................................................... 19

CVS HEALTH CORPORATION ................................................................... 20

DANAHER CORPORATION ......................................................................... 21

DEERE & COMPANY .................................................................................... 22

EBAY INC ....................................................................................................... 23

EMCOR GROUP INC .................................................................................... 24

FIRST REPUBLIC BANK .............................................................................. 25

FORTIVE CORPORATION ............................................................................ 26

JOHNSON & JOHNSON ................................................................................ 27

LITTELFUSE, INC .......................................................................................... 28

NIKE, INC ....................................................................................................... 29

PHILLIPS 66 .................................................................................................... 30

RAYTHEON COMPANY ............................................................................... 31

ROPER TECHNOLOGIES, INC ..................................................................... 32

SCHLUMBERGER LIMITED ........................................................................ 33

THE CHARLES SCHWAB CORPORATION ................................................ 34

THE TJX COMPANIES, INC ......................................................................... 35

UNILEVER PLC .............................................................................................. 36

UNITED TECHNOLOGIES CORPORATION .............................................. 37

WATERS CORPORATION ............................................................................ 38

2018 SUSTAINABILITY REPORT DISCLOSURE ...................................... 39

In 2008, Hamilton Point released its first Sustainability Report to

assess and document the environmental impacts of the companies

recommended in our Global Core Equity Strategy. For 2018, the re-

port has been updated to provide our most recent evaluation of these

companies' efforts toward sustainability. It was not so long ago that

corporate efforts to promote sustainability were viewed as primarily

philanthropic in nature, and associated costs were often bemoaned

by businesses as cutting into their bottom line. Today, it is our belief

that this philosophy has been turned on its head. With an ever-

growing demand for organically produced products, volatile energy

prices and an increasingly environmentally conscientious consumer,

sustainability is now seen, in our opinion, as a key to creating an ef-

ficient, profitable and responsible organization.

At Hamilton Point, we believe that financial markets play an im-

portant role in shaping the economic, social and environmental land-

scape of tomorrow. As investment advisors, we must thoroughly

consider these effects as we make responsible investment decisions.

Our first and foremost priority is to serve the fiduciary needs of our

clients; therefore, equity recommendations are made with the goal of

maximizing returns while minimizing risk. Nevertheless, we feel that

a company’s willingness to evaluate, innovate and streamline its op-

erations in order to become more environmentally conscientious is a

powerful indicator of its capacity to adapt and grow as a business,

respond proactively to challenges and succeed in a competitive at-

mosphere.

In order to create a report that is user friendly as well as informative,

the information about each company found in this analysis will be

largely anecdotal in nature; that is to say, we have not provided a

myriad of tables, spreadsheets or raw data. We have instead pro-

cessed and synthesized the information so that it can be displayed

graphically in our Sustainability Matrix, which serves as our evalua-

tion of a company’s sustainability performance in comparison to oth-

er companies within its industry and the direction in which a compa-

ny is progressing. As a supplement to the graphical representation of

the companies’ environmental performance, we have provided a

snapshot containing quantitative and qualitative data of the innova-

tive ways each company is aligning its business interests with those

of the environment. We hope that you are as pleased as we are to

learn about the innovative ways these businesses are learning to do

more with less, as well as to know how we believe these companies

are helping build a better future for you and for the planet as a

whole.

Introduction 1

Guide to the Hamilton Point Sustainability Matrix

Businesses in different industries have

inherently different environmental im-

pacts. Colgate-Palmolive, a maker of

toothpaste, soaps and household products,

will undoubtedly have a lower impact on

the environment than Phillips 66, which is

by nature involved in a “dirtier” industry.

Both household products like soap and

toothpaste as well as hydrocarbons like

gasoline and propane are crucial to the

modern lifestyle of billions of people

around the world, and exposure to both of

these industries is, in our opinion, necessary for creating a balanced invest-

ment portfolio.

Additionally, there is a net benefit argument for many companies that we

believe is difficult to quantify. For example, Alphabet, Google’s parent

company, consumes large amounts of electricity in powering its operations.

However, Alphabet invests heavily in green energy, and as of 2018, 100%

of Google’s energy comes from renewable resources. In addition, Alphabet

also contributes to enhanced efficiencies and technological innovations that

lead to less consumption of fossil fuels and other resources, on a net basis.

Hamilton Point created the Sustainability Matrix to confront the challenges

of evaluating companies in vastly different sectors of the economy who face

inherently different levels of difficulty in lowering the environmental foot-

print of their business. Our matrix accounts for the nature of the industry

that each company is a part of on the vertical axis by rating it on a spectrum

from poor to good. Industries like oil exploration and production which face

higher potential environmental risks and whose products also create pollu-

tion are given a poor rating, while most consumer product related industries

with much less environmentally damaging activities are given ratings of

good. This axis alone cannot inform us as to how each business is confront-

ing the sustainability challenges it faces compared to other companies in its

specific industry. Thus, the horizontal axis is devoted to our evaluation of

each company’s efforts to decrease its environmental footprint as best it can,

relative to other companies that share similar challenges. For companies like

Schlumberger and Phillips 66, this means spill prevention, cleaner fossil fuel

research and R&D devoted to finding renewable energy sources. For Col-

gate-Palmolive or Nike, this means finding ways to create less waste during

manufacturing, using less electricity in their facilities and striving to create

organic or low impact product lines to fulfill the needs of consumers.

We feel our two-dimensional matrix thus allows for a more holistic and in-

formative assessment of the effort each company devotes to creating a sus-

tainable business in ways that a standard one-dimensional rating system —

such as a one-to-five star score — could not. Alongside each Hamilton

Point Company Sustainability Matrix you will see further company fur-

nished data, such as the Company Snapshot, Key Statistics and Sustainabil-

ity Accomplishments and Initiatives. These pieces of information serve as

tools to analyze each of our represented companies and evaluate their envi-

ronmental standing and progress. On page 4, you will find the Hamilton

Point Sustainability Matrix displaying all companies in the Global Core Eq-

uity Strategy as of June 30, 2018, in aggregate.

In general, we are very pleased to see how much time and manpower many

of these companies spend to make themselves more sustainable. Although

there are a few businesses that could use improvement, we are proud to say

that our sustainability analysis of our Global Core Equity Strategy strongly

reflects the philosophies of value-added, growth-oriented and responsible

business practices that Hamilton Point strives for in all its investments.

P

oor

Neu

tral

Goo

d

Ind

ust

ry

Hamilton Point

Sustainability Matrix

Poor Neutral Good

Company

2

Hamilton Point's commentary is for informational purposes only. This is not a recommendation to buy or sell a particular security. The matrix is not a predictor of success or indicator of performance for a security. Hamilton

Point may change is evaluation of securities over time. For additional disclosures see page 39.

Guide to the Hamilton Point Sustainability Matrix

Individual Company Highlights

In this report, Hamilton Point has compiled one page reviews of each Global

Core Equity Strategy company as of June 30, 2018. Each review includes

Company Snapshot, Key Statistics and Sustainability Accomplishments and

Initiatives sections compiled from various publicly disclosed informational

sources. Additional information was collected from company-published ma-

terials, primarily annual reports, corporate sustainability reports and infor-

mation found on investor relations websites.

The Sustainability Matrix and Progress & Evaluation sections reflect Hamil-

ton Point’s assessment of a company’s initiatives based on publicly dis-

closed information. For further questions, see the full disclosure at the end

of this report.

Non-Reporting Companies

There were a few companies in the Global Core Equity Strategy that dis-

closed little to no information regarding their approaches to promote sustain-

ability or their waste and pollution emissions levels. Some of these compa-

nies, such as Check Point and Waters, operate in industries with relatively

little impact on the environment. Others, such as Fortive, are relatively new,

and therefore have only just begun to release sustainability information to

the public. Lastly, Littelfuse is one company that operates in a less environ-

mentally friendly industry and which still fails to set regular sustainability

goals and provide data that quantifies its environmental impact.

Although the lack of disclosure is a concern for Hamilton Point from an en-

vironmentally conscious perspective, we are no less confident in these com-

panies as quality investments based on other merits. These companies have

been included in the report and have been given industry ratings that we feel

most accurately represent their environmental impact. However, without

significant disclosure from the companies, an individual rating of their envi-

ronmental performance is difficult to ascertain. Our evaluation of these com-

panies was created to the best of our ability based on the information availa-

ble about the industry and the company.

Newsweek Scoring

Hamilton Point includes environmental, social and governance (ESG) scores

and rankings provided by Newsweek to offer a comparison to the Hamilton

Point Sustainability Matrix. This report uses the Newsweek 2017 Green

Rankings.

Newsweek partners with Corporate Knights Capital and HIP Investor to rank

companies based on their Newsweek Green Score, which is calculated using

eight specific indicators: Combined Energy Productivity (15%); Combined

Greenhouse Gas (GHG) Productivity (15%); Combined Water Productivity

(15%); Combined Waste Productivity (15%); Green Revenue Score (20%);

Sustainability Pay Link (10%); Sustainability Board Committee (5%); and

Audited Environmental Metrics (5%).

3

Hamilton Point's commentary is for informational purposes only. For additional disclosures see page 39.

The Hamilton Point Sustainability Matrix

This chart is a graphic representation of all companies in our Global Core Equity Strategy as of June 30, 2018. The upper right box depicts what we believe to be

the highest-rated companies, while the companies with Poor ratings are located to the bottom left.

I

N

D

U

S

T

R

Y

D

Y

N

A

M I

C

Good

Neutral

Poor

Poor Neutral Good

C O M P A N Y B E H A V I O R

Good Companies

Neutral Companies

Poor Companies

PSX Phillips 66

ACN Accenture Plc

GOOG Alphabet Inc.

AMGN Amgen Inc.

AAPL Apple Inc.

AMAT Applied Materials Inc.

ADP Automatic Data Processing, Inc.

BDX Becton, Dickinson and Company

CHD Church & Dwight Co.,

Inc.

CSCO Cisco Systems, Inc.

CL Colgate-Palmolive Co.

CVS CVS Health Corporation

EBAY eBay Inc.

EME EMCOR Group Inc.

JNJ Johnson & Johnson

NKE NIKE, Inc.

RTN Raytheon Company

TJX The TJX Companies,

Inc.

UL Unilever PLC

UTX United Technologies

Corporation

BKNG Booking Holdings Inc.

CHKP Check Point Software

Technologies Ltd.

DHR Danaher Corporation

DE Deere & Company

FRC First Republic Bank

FTV Fortive Corporation

LFUS Littelfuse, Inc.

ROP Roper Technologies, Inc.

SLB Schlumberger Limited

SCHW The Charles Schwab

Corporation

WAT Waters Corporation

4

GOOG

EBAY CSCO

AAPL

CVS

UL

TJX ADP

CL

NKE

AMGN

JNJ

CHD AMAT

BKNG

CHKP

SCHW

ROP DHR

LFUS

WAT

DE

PSX SLB

ACN

UTX

RTN

BDX FTV

FRC

EME

This is not a recommendation to buy or sell a particular security. For additional disclosures see page 39.

Glossary Carbon Dioxide (CO2) - the most prominent greenhouse gas produced

by human activity, especially the combustion of fossil fuels.

Carbon Disclosure Project (CDP) - an organization based in the

United Kingdom which runs a global disclosure system that enables

companies, cities, states and regions to measure and manage their en-

vironmental impact. The CDP releases an annual climate change, wa-

ter, forests and supply chain questionnaire that companies can respond

to as a way to release metrics of their environmental impact to the pub-

lic.

Climate Change - any long-term significant change in average weath-

er conditions, or in the distribution of weather around average condi-

tions. Average weather may include temperature, precipitation, wind

patterns and other factors. These changes can be caused by dynamic

processes on Earth, external forces including variations in sunlight in-

tensity and more recently, human activities.

Dow Jones Sustainability Indices (DJSI) - the first global indices to

track the financial performance of the leading sustainability-driven

companies worldwide. The DJSI US tracks the leading companies in

the United States, while the DJSI Europe, Asia and North America

tracks leading companies on those continents. The DJSI World index

tracks the top 250 companies in the world based upon economic, envi-

ronmental and social criteria.

Environmental Footprint - the measure of a human, a company or an

activity’s impact on the Earth’s ecosystem. It compares human de-

mand for natural resources with the Earth’s ecological capacity to re-

generate these resources by representing the biologically productive

land and sea that are needed to regenerate those resources.

E-Waste - consumer and business electronic equipment that is near or

at the end of its useful life, of which certain components contain mate-

rials that render them hazardous, depending on their condition and

density. Common contaminants include lead, cadmium, beryllium or

brominated flame retardants.

FTSE4Good Index Series - measures the performance of companies

demonstrating strong Environmental, Social, Governance (ESG) prac-

tices.

Green Grid - a global collaboration of IT companies and profession-

als seeking to improve energy efficiency in data centers and business

computing systems around the globe. The organization seeks to unite

global industry efforts to standardize a set of metrics, processes, meth-

ods and new technologies to further its common goals.

Greenhouse Effect/Greenhouse Gasses (GHGs) - a reference to a

traditional greenhouse’s ability to trap heat from sunlight, where heat

energy radiated from the Earth is absorbed by atmospheric gasses such

as Carbon Dioxide, Methane and Ozone rather than escaping into

space. Scope 1 GHG emissions, or Direct GHG emissions, are emis-

sions from sources that are owned or controlled by an organization or

individual. Scope 2 GHG emissions, or Energy Indirect GHG emis-

sions, are emissions generated from the organization’s consumption of

purchased electricity, steam or other sources of energy. Lastly, Scope

3 GHG emissions, or Other Indirect GHG emissions, are emissions

that are the result of the operations of an organization, but which are

not directly owned or controlled by the organization.

5

Glossary Green Roof - a roof that is partially covered with vegetation and soil

or some other growing medium. This technique helps to reduce the

urban heat island effect which is caused by buildings absorbing a

higher percentage of heat radiation from the sun than soil or vegeta-

tion.

Hazardous Air Pollutants (HAPs) - are pollutants that are known or

suspected to cause cancer or other serious health effects, such as ad-

verse environmental effects, reproductive effects or birth defects.

Heating, Ventilation, and Air Conditioning (HVAC)- the technolo-

gy of indoor and vehicular environmental comfort. Its goal is to pro-

vide thermal comfort and acceptable indoor air quality.

ISO-14001 - a certification for small to large organizations that speci-

fies the requirements of an environmental management system (EMS),

which provides a systematic approach for handling environmental is-

sues.

Leadership in Energy and Environmental Design (LEED) - is a

green building rating system developed by the U.S. Green Building

Council. This system provides standards for environmentally friendly

construction in order to minimize electricity and water usage and to

decrease waste and pollution. LEED certified buildings save compa-

nies in the U.S. billions of dollars each year and decrease overall pow-

er consumption by millions of kilowatt hours annually.

Sustainability - in ecology, sustainability describes how biological

systems remain diverse and productive over time. For humans, sus-

tainability is the potential for long-term prosperity, which depends

greatly on our ability to live in equilibrium with the natural world

around us and to use resources to our benefit without depleting them at

the expense of future generations.

Light Emitting Diode (LED)- lighting products that produce light ap-

proximately 90% more efficiently than incandescent light bulbs. LED

lighting is also lasts longer than incandescent and fluorescent, when

designed well.

Roundtable on Sustainable Palm Oil (RSPO) - organization with the

objective of promoting the growth and use of sustainable oil palm

products through credible global standards and engagement of stake-

holders.

Smart Meters - An electronic device that records consumption of

electrical energy and communicates the information to the electricity

supplier for monitoring and billing.

The United States Environmental Protection Agency (U.S. EPA) -

is a federal government agency created in 1970 by President Richard

Nixon with the purpose of protecting human health and the environ-

ment. The U.S. EPA sponsors several programs, such as ENERGY

STAR and the Green Power Partnership, which enable businesses and

individuals to become more environmentally friendly.

Volatile Organic Compounds (VOCs) - a large group of carbon-

based chemicals that easily evaporate at room temperature and may

have adverse short- and long-term health effects. VOCs are emitted as

gases from a variety of solids or liquids including paints, cleaning sup-

plies, pesticides, building materials, office equipment, glues, perma-

nent markers and photographic solutions.

6

Hamilton Point Company Analyses

Compiled and updated in 2018 by Kent McKane, Intern

7

Key Statistics

Hamilton Point


Ind

ust

ry

Company

Hamilton Point’s commentary is for informational purposes only. For additional disclosures see page 39.

Alternative ESG

Scoring

Based in Dublin, Ireland, Accenture Plc. (ACN) is a global professional services compa-ny serving clients in various industries and geographic regions, including North America, Europe, and emerging markets. Accenture has a global presence with 425,00 employees in 120 countries. Accenture provides a range of strategy, consulting, digital, technology, and operations services and solutions for its clients, which include 95 of Fortune Global 100 and more than three-quarters of Fortune Global 500. The ultimate goal of Accenture

is to enable its clients to become high performing businesses and governments. The company operates in five business segments: Communications, Media & Tech (CMT), Financial Services, Health and Public Service (HPS), Products, and Resources.

As of FY ended 8/31/17

2017 Revenue: $34.9B

Net Income: $3.6B

Business Segments:

Products: $9.5B (27%)

Financial Services: $7.4B (21%)

CMT: $6.9B (20%)

HPS: $6.2B (18%)

Resources: $4.9B (14%)

Sustainability Accomplishments and Initiatives

• Investing in virtual collaboration technology in order to continually improve and reduce air travel carbon emissions per employee

• Promoting energy-efficient transportation in India by encouraging shuttle vendors to decarbonize their fleets by replacing vehicles with natural gas or electronically-powered alternatives

• Leading Client Carbon Savings program that helps their clients meet their own eco-nomic and sustainability goals by developing new strategies and tools to capture, measure, and report carbon savings

Progress & Evaluation

As a leader in its industry, Accenture has set a great standard by consistently accomplishing their self-imposed energy and environmental sustainability goals. Not only has Accenture reached their goals, but they have achieved some of them years ahead of schedule. Approximately 80% of their carbon footprint comes from emissions generated by employees during air travel and from the use of electricity. In response to this, Accenture has recently adopted virtual collaboration technology in order to greatly reduce air travel.

Externally, Accenture has had a positive impact on the sustainability efforts of their suppliers and clients, which feature over 75% of Fortune Global 500, by leveraging their technology and expertise in the field of environmental sustainability. Having offices in 120 countries, Accenture has demonstrated that it is committed to fostering sustainability initiatives globally, especially in growing markets like India. As seen through their 72 page Corporate Citizenship Report, Accenture has demonstrated that they recognize the importance of environmental sustainability through their quantifiable and time specific carbon emissions and electrical usage reduction goals. Hamilton Point assigns Accenture a Sustainability Matrix of Good for their commitment to reducing their carbon footprint and that of their clients.

Accenture Plc.

• Recognized in CDP’s 2017 Climate Change Report as a leading company for reducing emissions and mitigating climate change

• Included on Dow Jones Sustainability Index North America and FTSE4GOOD Global Index for 13 consecutive years

• Achieved a 8% improvement in energy efficiency over the previous year in fiscal 2017

• 76% of key suppliers disclosed emissions reductions actions

• Realized a reduction of approximately 200,000 metric tons of CO2 emissions from office electricity usage in 2016

• In 2018, Accenture plans to implement and pilot electronically commutated fans across offices in India with anticipated savings of more than 7,400 megawatt hours of electrici-ty and 6,100 metric tons of CO2

• 21% of their energy usage came from renew-able sources in fiscal 2017, leading to an avoidance of more than 63,000 metric tons of CO2 across global operations

• Achieved a 52% reduction against 2007 base-line in per-employee carbon emissions in fiscal 2017, reaching this goal three years ahead of schedule

• Installed more than 650 smart meters in 38 buildings across 14 countries by end of FY17

Accomplishments New Initiatives Continuing Initiatives

8

82.5%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Alphabet Inc. (GOOG), based in Mountain View, California, is an American multinational con-glomerate founded in 2015 as the parent company of Google and companies previously owned by Google. Google was founded in 1998 by Larry Page and Sergey Brin, who created the world’s most effective search engine and improved the accessibility of the internet by downloading and indexing the entire web. Google later grew to include many recognizable brands, including YouTube, Gmail and Android. Alphabet segments itself into industries such as technology, life sciences, investment capital and research. Several of its subsidiaries include Google, Calico, GV, CapitalG, X, Waymo and Google Fiber.


2017 Revenue: $110.9B

Net Income: $12.7B

Business Segments:

Google: $109.7B (98.9%)

Other Bets: $1.2B (1.1%)


• Google’s Project Sunroof uses satellite imaging to gauge the suitability of individual homes for solar panels in UK

• Creating and promoting cloud-based prod-ucts and technologies that allow users to monitor tropical rainforests, detect pipeline leaks, map tens of millions of solar roof-tops and reduce GHG emissions

• Google’s employee shuttle program and corporate electric vehicles have taken the equivalent of 5,700 cars off the road, or about 87 million vehicle miles

• Google currently has 26 renewable energy projects around the world


Not only is Alphabet a global pioneer in technology and innovation, but also in environmental sustainability and corporate responsibility. Like many technology companies, electricity used by Alphabet’s data centers is the company’s main potential carbon footprint. Through its investment in wind and solar power, Alphabet’s Google announced that renewable energy now powers 100% of global data centers, an in-credible feat. Through its over $3.5B investment in renewable energy, Alphabet is setting an excellent example for other technology compa-nies to follow. As a result of Alphabet’s commitment to renewable energy, its sustainable and energy-efficient workplaces, and its net zero carbon footprint, Hamilton Point assigns Alphabet Inc. a Sustainability Matrix classification of Good.

Alphabet Inc.

• U.S. EPA Excellence in Green Power Use Award (2017) and Green Power Partner of the Year Award (2011, 2014)

• Featured at a high position on Greenpeace's 2017 Clean Energy Report

• Carbon Neutral for 11 consecutive years

• Over 9.2 million square feet of Google of-fices have received LEED certification

• Largest corporate renewable energy pur-chaser in the world

• Invested $76 million in a 300MW wind farm in Beaver County, OK (2015)

• Google reached its goal of using 100% renewable energy for its global operations in 2017

• In late 2017, Google announced the purchase of 3 gigawatts of renewable energy, equal to the total energy used by all of its offices and data centers globally

• Google will use North America’s largest heat pump, rather than fossil fuels, to control tem-peratures at its new HQ under construction in Silicon Valley


9

14.9%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Amgen Inc.



Net Income: $2.0B

Business Segments:

Human Therapeutics: $22.8B (100%)

• Winner of the U.S. EPA’s Presidential Green Chemistry Challenge (2017)

• Corporate Responsibility Magazine’s 100 Best Corporate Citizens (2016-2017)

• DJSI World Index (2014-2017) and Dow Jones North American Index (2013-2017)

• Received Energy Project of Year award (2017) and Corporate Energy Management Award (2014) from the Association of Energy Engineers

• Three buildings certified by U.S Green Building Council, one at LEED Platinum, one at LEED Gold, one at LEED Certified

• Awarded the Cool Planet Award by South-ern California Edison and The Climate Registry (2014)

• Puerto Rico Manufacturers Association recognized recycling, waste minimization, water reuse and energy conservation per-formance (2014-2015)

• In 2017, Amgen reached 2020 target of reduc-ing 3,000 metric tons of fleet carbon, a 20% decrease from 2012 baseline

• Reduced carbon emissions by 118,200 metric tons, or 28%, from 2007 through 2017 by implementing energy conservation and carbon reduction projects

• Implemented new air exchange reduction and air handling conservation projects in 2017 resulting in an energy reduction of 5,200 GJ

• Water conservation projects implemented in 2017 resulted in an additional 63,000 cubic meters (CM) of annual water reduction to achieve a total of 266,000 CM since establish-ing 2020 targets in 2013

• Waste reduction programs decreased an addi-tional 188 MT of annual waste in 2017 to achieve a total of 1,038 MT since establishing 2020 targets in 2013

• Releases detailed sustainability reports annually with sustainability measurements that review progress and note achievements

• Amgen’s 2020 environmental plan currently aims to reduce facility carbon by 10%, waste disposed in landfills by 35% and water use by 10%

• Taking action to become more selective of suppliers and to educate and empower staff to be more environmentally responsible

• Using facility data evaluation program that has conserved 67,800 gigajoules at U.S. based locations

• Encouraging alternative methods of commuting to work, such as carpooling, and providing electric vehicle charging stations


Progress & Evaluation The biotechnology industry in which Amgen conducts business is relatively sustainable in nature. Many of the largest environmentally sensi-tive portions of the business revolve around energy consumption, water usage, and toxic waste disposal. In 2017, Amgen accomplished their goal of reducing fleet carbon emissions. Hamilton Point assigns Amgen Inc. a Sustainability Matrix classification of Good due to their strong environmental awareness and history of consistently creating energy efficiency programs and reaching their sustainability targets. The com-pany has a commitment to better the environment and provides clear outlines of its plan and goals in detailed annual sustainability reports.


Amgen Inc. (AMGN), based in Thousand Oaks, California, is a multinational biopharmaceu-tical company that uses biology to discover, develop, manufacture and deliver innovative and advanced human therapeutics for patients suffering from serious illnesses. The Amgen ap-proach is deeply rooted in research and focuses on areas of high unmet medical needs and limited treatment options. Amgen leverages its biologics-manufacturing expertise to strive for healthcare solutions that dramatically improve lives. A biotechnology pioneer since 1980,

Amgen has grown to be one of the world's leading independent biotechnology companies, has reached millions of patients around the world and is developing a pipeline of medicines with breakthrough potential. Amgen has a strong history of corporate and environmental responsibil-ity, and the company operates in a single business segment: Human Therapeutics.

10

62.8%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Apple Inc.

Apple Inc. (AAPL), a multinational technology company based in Cupertino, California, designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players. Apple also sells a variety of related software, services and third-party digital content and applications. Products and services include the iPhone, iPad, iPod, Mac, Apple Watch, Apple TV, a portfolio of consumer and profes-sional software applications, the iOS and OS X operating systems, iCloud and a variety of accessory, service and support offerings. Founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne, Apple’s products continue to be unique because of their integrated software and hardware, user-friendly nature and simple design.


2017 Revenue: $229.2B

Net Income: $45.7B

Business Segments:

iPhone: $141.3 (62%)

Services: $30B (13%)

Macintosh: $25.9B (11%)

iPad: $19.2B (8%)

Other Products: $12.9B (6%)

Sustainability Accomplishments and Initiatives Accomplishments New Initiatives Continuing Initiatives

• Reached 100% renewable energy for all company operations in 2018

• Carbon emissions per product have de-creased every year since 2011

• U.S. EPA Green Power Leadership Award (2014-2017)

• Acknowledged by Greenpeace as the greenest tech company in the world (2014-2016)

• Apple’s VP of Environmental Initiatives served as the former head of the U.S. EPA and earned the Environmental Achievement Award (2018) for greening Apple’s supply chain

• As of 2018, 23 manufactures have committed to power their Apple operations with 100% renewable energy

• In 2018, Apple pledged to use 100% recy-cled materials in a closed supply loop for future fabrication of its devices

• In 2017, Apple conducted a lighting and HVAC retro-commissioning program throughout retail stores, leading to a savings of 3.7 million kWh per year

• Reduced energy footprint in fiscal year 2017 by 14.7 million kWh

• Total transportation emissions fell by 3 per-cent in fiscal year 2017

• Solar projects now produce enough energy to power all offices and stores in China

• Apple is offering a $1B bond to fund clean tech and environmental investment projects in response to the U.S. government’s deci-sion to leave the Paris climate agreement

• Apple is creating and protecting sustainable forests to cover all their product packaging needs

• Apple has a proven history of reducing the carbon footprint of its manufacturing process and improving the energy efficiency of its products

• Apple is engaging with 48 suppliers at 71 facilities to implement energy efficiency measures, which saved 320,000 MT of CO2 in 2017

• Apple’s Clean Energy Portal helps suppliers identify commercially viable renewable en-ergy solutions in regions around the world

• Apple and their suppliers are working to generate and procure more than 4 gigawatts of new clean power worldwide by 2020

Progress & Evaluation For years, Apple has adhered to its self-imposed high standards for energy efficiency, emission reductions and transparency. Apple is commit-ted to rigorous self-evaluations and uses a three-pronged approach for sustainability, which comprises of displacement, materiality and ac-countability. Programs derived from this approach resulted in Apple reaching 100% renewable energy in 2017. Despite the recent controversy around Apple intentionally reducing the usage life of iPhones, the company set new bars in fiscal year 2017 by engaging with its supply chain to increase energy efficiency and increasing their investment in renewable energy sources globally.

Hamilton Point assigns Apple Inc. a Sustainability Matrix classification of Good for its continued efforts in environmental stewardship. Apple promotes transparency and responsibility by releasing thorough environmental sustainability reports every year.

11

71.5%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Founded in 1967 and based in Santa Clara, Ca, Applied Materials, Inc. (AMAT) engages in the provi-sion of materials engineering solutions used to produce new chips and advanced display. Applied Materials provides manufacturing equipment, services, and software to the semiconductor, display, and related industries worldwide. The company operates in three business segments: Semiconductor Systems, Applied Global Services (AGS) and Display and Adjacent Markets (DAM).



Net Income: $3.4B

Business Segments:

Semiconductors: $9.5B (66%)

AGS: $3.0B (21%)

DAM: $1.9B (13%)


• Offering employee discounts for the purchase and installation of solar panels for their homes through the Employee Solar Program

• Applied Materials offers a Work-From-Home (AppliedAnywhere) program with 421 participants in 2016, and maintains 18 telepresence rooms for virtual meetings, helping to reduce carbon emissions from air and car travel

• Supporting employee programs that reduce greenhouse gas emissions, including pub-lic and alternative transportation incentives for California employees, electric vehicle charging stations, and preferred parking for carpools, hybrid and electrical vehicles


In fiscal 2016, the year of their latest Citizenship Report, Applied Materials grew orders, revenue and earnings to the highest levels in the Company’s history. During this year of growth, they were able to keep direct energy use, water consumption, and greenhouse gas emissions relatively flat while making progress on other sustainability initiatives, like supporting urban gardening and work carpools. Applied Materials has not become lax on its commitment to environmental sustainability amid economic growth.

Applied Materials’ proved that they were capable of reducing waste, increasing renewable energy sources, and expanding recycling efforts during their successful fiscal 2016. While we look forward to reading their updated 2017 Citizenship Report as soon as it is published, Ap-plied Materials’ 2016 Citizenship Report demonstrated a clear commitment to preserving the environment over the long term. Hamilton Point assigns Applied Materials a Sustainability Matrix of Good for its commitment to adopting energy efficient methods and minimizing environ-mental impacts.

Applied Materials Inc.

• Generated a total of 3.5 GWh of energy by using solar panel arrays at facilities in Sunnyvale, CA; Singapore; Xi’an, China; and Austin, TX in 2016

• Green energy purchases supported 100% of the power demand of their two Santa Clara locations and approximately 28% of the Austin location’s power needs in 2016

• Recycled approximately 32 tons of water at the Santa Clara location in 2016, which was an increase of 1,100% compared to waste diversion in 2015

• Decreased the amount of non-hazardous waste by 30% in 2016 due to the implementation of additional recycling programs

• Supported urban gardening projects, tree planting activities and events encouraging sustainable practices all over the globe in 2016

• Partnered with Scoop, a mobile app for car-pooling, to give riders door-to-door transportation to the company’s Santa Clara location for only $2

• Implemented an Industrial Waste Neutralization Program at its Austin location in September of 2015 that led to a total of 6.3 million gallons of water being successfully recycled during 2016


12

67.5%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Automatic Data Processing, Inc.

Automatic Data Processing, Inc. (ADP), based in Roseland, New Jersey, is one of the world’s largest providers of business process outsourcing products and services, serving 650,000 clients around the world. ADP offers a wide range of technology-enabled Human Capital Management (HCM) services including human resources, payroll, insurance, retire-ment, tax and compliance and benefits administration solutions. ADP was a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle and heavy equipment retailers and manufacturers until it spun off this business in 2014. The com-pany’s reportable segments are: Employer Services, Professional Employer Organization (PEO) Services and Other.




Net Income: $1.7B

Business Segments:

Employer Services: $9.5B (76.7%)

PEO Services: $3.5B (28.2%)

Other: ($639)M (-4.9%)


As an industry leader, ADP is obligated to follow through when they say that they’re taking the necessary steps to demonstrate their commit-ment to energy and environmental sustainability. ADP continues to initiate environmentally conscious programs that have positive effects for both their clients as well as their own business. Through data center consolidation, energy efficiency and active environmental awareness promotion, ADP has successfully made efforts to reduce their carbon footprint.

Hamilton Point assigns Automatic Data Processing, Inc. a Sustainability Matrix classification of Good due to their successful recycling and energy efficiency programs and their continued commitment to developing sustainable workplace programs, like electric vehicle charging stations and bike racks. ADP has succeeded in keeping up with current initiatives, but needs to set more long-term sustainable goals. Through their web page on corporate environmental responsibility that now provides quantitative measurement goals, ADP continues to set a good example in the field of sustainability.

• Offices in Augusta, GA, New York City, and Pasadena, California received Gold LEED certification, a rank which only one of 1,144 buildings in the US have achieved

• For the second consecutive year, ADP re-ceived an A– rating by Carbon Disclosure Project for their global efforts

• Recycled 2,471 tons of paper and reduced electrical energy usage by 12,592,039 kWh in 2016

• Improved water treatment systems in two locations for better efficiencies and cleaner water

• ADP upgraded HVAC units and installed LED lighting in facilities and parking lots in 2017

• ADP’s entire North American sales fleet has been replaced with eco-friendly vehicles, sav-ing the environment from 4,000 tons of CO2

• ADP consolidated their data centers to 2 from 20, reducing 24k tons of carbon dioxide emis-sions annually

• ADP uses fuel cell technology to provide for 80% of its La Palma building’s energy needs

• ADP is leading the Turn Off Monitors energy-reduction campaign

• ADP is an active member of the Green Grid, a group dedicated to developing and promoting energy efficient data centers

• ADP installs bike racks and electric vehicle charging stations and offers carpool-preferred parking spaces at offices

• The company is striving to reduce carbon dioxide emissions by a minimum of 10% over the next 5 years


13

17.9%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Becton, Dickinson and Company



Net Income: $1.1B

Business Segments:

Medical: $8.1B (66.9%)

Life Sciences: $4.0B (33.1%)

Becton, Dickinson and Company (BDX), headquartered in Franklin Lakes, New Jersey, is a global medical technology company committed to advancing the world of health through the development, manufacture and sale of laboratory equipment, diagnostic products and medical supplies and devices. These products are used by healthcare institutions, life science research-ers, clinical laboratories, the pharmaceutical industry and the general public. Although over half of the company’s sales are generated in the U.S., BD has a global presence with over 40,000 people employed in 50 countries around the world. BD consists of two major business segments: Medical Segments and Life Sciences. In 2017, BD completed its acquisition of C.R. Bard, Inc., creating a new health care industry leader.


• Ranked #10 on the U.S. EPA’s list of the largest green power users within the Green Power Partnership (2018)

• BD participated in the Chemical Footprint Project (CFP) in 2017, working to trans-form global chemical use by measuring and disclosing data on safer chemicals

• CR Magazine’s 100 Best Corporate Citi-zens List (2017)

• FORTUNE “Change the World” List (2015-2017)

• U.S. EPA Green Power Partner (2017) and U.S. EPA SmartWay Transport Partner (2017)

• DJSI North America Index (since 2005) and FTSE4Good Index (since 2003)

• BD is combating antimicrobial resistance through infection prevention and control, diagnostics, medication preparation, infor-matics, and surveillance

• In 2017, 45% of total energy came from re-newable sources and energy consumption was reduced by 20%

• BD reduced total waste by 30%, increased the recycling rate to over 66% and reduced hazardous waste by 56% in FY17

• In 2017, BD increased the landfill diversion rate to 79% and reduced water consumption by 35%

• 30 BD sites have ISO 14001-certified envi-ronmental management systems with 7 more pursuing certification through a pilot project

• BD invests in sustainability projects through their Sustainability Capital Fund and invested $7.5M in these projects across the company in FY17

• BD has a program where patients can find the most convenient locations for safe needle disposal through SafeNeedleDis-posal.org

• BD’s sustainability strategy and 2020 goals include reducing GHG emissions, eliminat-ing priority materials of concern and im-proving life cycle impacts on current and future products

• Requires suppliers to comply with BD’s Expectations for Suppliers, which details BD’s social and environmental standards

• BD is a member of the Healthcare Plastics Recycling Council and the Coalition for Sustainable Pharmaceuticals and Medical Devices

Progress & Evaluation Becton Dickinson continues to be a global health care leader in environmental sustainability. By investing in renewable energy, reducing waste, and building LEED certified buildings, BD leads the way in sustainability initiatives. BD is also bettering the world by working to ad-dress global health care concerns, like antimicrobial resistance and the opioid epidemic, by developing technologies and programs to combat these health crises. For these reasons, Hamilton Point assigns Becton, Dickinson and Company a Sustainability Matrix classification of Good.

14

38.6%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Booking Holdings Inc. (BKNG), headquartered in Norwalk, Connecticut, is a leading provider of online travel and travel-related reservation and search services. Booking offers its customers accommodation reservations for hotels, bed and breakfasts, hostels, apartments and vacation rentals, as well as comparisons of airline tickets and car rental services through its many busi-nesses. Booking provides its services through brands including Booking.com, priceline.com,

agoda.com, KAYAK, rentalcars.com and OpenTable. The company serves customers in over 225 countries and territories and manages its business through a single business segment: Online Reservation & Related Services.



Net Income: $2.3B

Business Segments:

Online Reservation and Related Services: $12.7B (100%)


• Booking implements a relatively strict code of ethics that specifically addresses environmental impacts

• Employees are required to report any ques-tionable or harmful behavior committed by those involved with the company, includ-ing harmful practices to the environment

• As more customers and travelers desire greener accommodations, Booking is ex-ploring new initiatives to not only cater to their customers’ wants, but to also lessen the impact they have on the environment and reduce the company’s carbon footprint


The internet and technology industries have relatively low impacts on the environment, with the majority of energy usage and GHG emissions coming from companies' data centers, and Booking does not stray from this norm. Though Booking has not publicly announced that they have made any level of environmental or efficiency improvements to their data centers, many other companies in the same sector have and are reducing their carbon footprint drastically.

Booking is in a prime position to introduce initiatives that capitalize off of the growing demand for sustainable travel, which 87% of global travelers say they want, according to Booking.com’s Sustainable Travel Report. For example, Booking could highlight eco-friendly properties or promote locations that feature electric vehicle charging stations in the search results. Additionally, Booking could promote greener trans-portation methods. By making their customers aware of more environmentally friendly airlines or alternative ways to travel, Booking has the potential to have a massively positive impact on the environment. Not only does the company fail to produce any form of annual sustainabil-ity report, but it also neglects to publicly report any major measurement of their environmental impact. Booking is an innovative company within the travel reservation field, but it is lagging in regards to sustainability. Hamilton Point assigns Booking Holdings Inc. a Sustainability Matrix classification of Neutral.

Booking Holdings Inc.

• Aside from acknowledging the need for new initiatives and a recent grant to GHE, the company does not publicly release sus-tainability information and therefore has no awards or major achievements

• Booking released its 2018 Sustainable Travel Report, which revealed that global travelers are increasingly becoming more interested in traveling sustainably

• Booking awarded $532,000 to Global Himalayan Expedition (GHE), an organiza-tion that provides clean energy to mountain-ous communities in the Himalayas


15

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Check Point Software Technologies Ltd.


2017 Revenue: $1.9B

Net Income: $803M

Business Segments:

Network & Data Security

Products: $1.9B (100%)

Check Point Software Technologies Ltd. (CHKP), based in Tel Aviv, Israel, is an international pro-vider of hardware and software products for information technology security, with products that include threat prevention, next generation firewalls, mobile security and security management. Since 1993, Check Point has dedicated itself to providing its customers with uncompromised protection against all types of threats, while reducing the complexity of cybersecurity and lowering the total cost of owner-ship. Check Point’s products and solutions provide increased security for point of sale systems, auto-mated teller machines, private and public cloud and telecommunications providers. Check Point’s reve-nues primarily come from products and licenses, software updates and subscriptions. As of 2018, the company had approximately 4,300 employees worldwide. Check Point is the largest network cyber secu-rity vendor globally and protects over 100,000 organizations of all sizes.




• Selected by Silicon Review for its list of Fifty Innovative Companies to Watch (2016)

• Check Point has not launched any recent initi-atives

• Check Point continues to work with suppli-ers in identifying environmentally con-scious components that increase efficiency, lifecycle and energy efficiency

• The company continues to reduce its car-bon footprint by creating reliable products and services that are cognizant of environ-mental impact throughout all phases of the life cycle

• Check Point closely monitors compliance with local and international laws in all loca-tions worldwide

The majority of Check Point’s impact on the environment occurs through its products, services and facilities. While Check Point develops environmentally friendly solutions, the company discloses little information regarding its sustainable practices and its goals for the future. Due to the lack of a sustainability report or any specific sustainability initiatives, Hamilton Point assigns Check Point Software Technologies Ltd. a Sustainability Matrix classification of Neutral. As the leading cyber security company in the world, Check Point should also lead the way in environmental sustainability.

16

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Church & Dwight Co., Inc.


2017 Revenue: $3.8B

Net Income: $743M

Business Segments:

Consumer Domestic:

$2.9B (76%)

Consumer International:

$621M (16%)

Specialty Product Division: $300M (8%)

Founded in 1846 and headquartered in Ewing, New Jersey, Church & Dwight Co., Inc. (CHD) develops, manufac-tures and markets a large range of household, personal care and specialty products. Church & Dwight includes notable brands such as Arm & Hammer, Trojan, OxiClean, Nair and Spinbrush. The consumer product brands are sold through many different platforms such as supermarkets, mass merchandisers, drugstores and others. Church & Dwight also sells specialty products to clients that include industrial consumers and distributors. With approximately 4,700 em-ployees in 9 countries around the world, Church & Dwight is divided into three business segments: Consumer Domes-tic, Consumer International and Specialty Product Division.



• Recognized in EPA’s Green Power Leader-ship (2017) and ranks no. 53 on the EPA’s national top 100 list of green power users

• Arm & Hammer’s BioEnzyme Power Liq-uid Laundry Detergent earned the U.S. EPA’s Safer Choice Certification (2015)

• Green River, WY plant received the Dwight C. Minton Environmental and Safety Excellence Award (2013) ; Lake-wood, NJ facility was recognized for its environmental performance and safety practices (2016)

• Upgraded a wastewater treatment plant to better control pH and elemental concentra-tions (2013)

• In 2018, Church & Dwight plans to join the RSPO with a goal of sourcing 100% certified sustainable palm oil

• In 2018, announced that the equivalent of 100% of their global electricity needs come from renewable sources

• In 2017, Church and Dwight recycled 11,459 tons of waste that would have ended up in landfills

• In 2017, reduced absolute GHG emissions by 3.7% compared to 2016

• Launched a 2017 program that will audit sup-pliers to ensure their compliance with Church & Dwight’s Guiding Principles

• Working to ensure that more than 95% of global product packaging is recyclable by 2025

• Working towards goals of reducing GHG emissions an additional 20% and achieving carbon neutral status by end of 2025

• Following Global Sustainable Packaging Guidelines to evaluate future innovative designs on the basis of improving recyclability

• Using the Product Stewardship approach, which includes carefully assessing risks of ingredients, optimizing use of recycled, renewable and biodegradable materials and eliminating concerning chemicals to ensure product safety and effectiveness

Church & Dwight operates in an industry that uses a lower amount of natural resources and energy than other manufacturing sectors. As a result of the company’s continued commitment to transparency and sustainability, it releases a thorough and descriptive sustainability report that includes quantitative data and specific goals.

Compared to its competitors, Church & Dwight does a slightly better than average job of prioritizing environmental sustainability in its opera-tions. Since 1846, the company has proven its commitment to people and the planet. However, their improvements and manufacturing practic-es have only been slightly better than the industry standard. Though Church & Dwight has shown the ability to institute sustainable practices in their businesses, we believe they have the potential to set more aggressive short-term goals and release more updates on their sustainability

initiatives throughout the year. Hamilton Point assigns Church & Dwight Co., Inc. a Sustainability Matrix classification of Good.

17

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Cisco Systems, Inc.



Net Income: $9.6B

Business Segments:

Products: $35.7B (74.4%)

Service: $12.3B (25.6%)

Based in San Jose, California, Cisco Systems, Inc. (CSCO) has grown to be one of the world’s larg-est information technology companies. Cisco designs, manufactures and sells Internet Protocol based networking products and services related to the communications and information technology indus-try. Cisco conducts its business in many areas of the globe, and the company’s business segments include Products and Services. The main company product offering areas are Switching, Next-Generation Network Routing, Collaboration, Data Center, Wireless, Service Provider Video, Security and Other. Since 1984, Cisco has been transforming the way that people connect, communicate and collaborate worldwide.

Accomplishments New Initiatives Continuing Initiatives Sustainability Accomplishments and Initiatives


• Earned top spot of Barron’s 100 Most Sus-tainable Companies List (2018) and ranked #1 on Newsweek’s Green Rankings for the U.S. (2018)

• Ranked 7th on Corporate Knight’s Global 100 Most Sustainable Companies (2018), 3rd on Forbes’ list of the World’s Most Sus-tainable Companies (2017) and 8th on For-tune’s Change the World List (2016)

• Awarded a Smart Energy Decisions Innova-tion Award (2018) for Global EnergyOps Program

• Included on DJSI World Index (2017) for environmental sustainability initiatives

• Awarded U.S. EPA Climate Leadership for Supply Chain (2016) and Green Power Partner of the Year (2008, 2013, 2016)

• 80% of electricity used worldwide came from renewable sources in FY17

• The 2018 EnergyOps Program is estimated to save over 600,000 kWh and $85,000 per year at two facilities in California

• Cisco installed window film on 24 buildings, resulting in 5.4M kWh of energy savings and $773,000 in utility cost savings per year

• Returned 11,400 Metric tons of products for reuse, refurbishing and recycling in FY17

• Launched a partnership with Dimension Data that has resulted in a 96% reduction in rhino poaching at a South Africa game reserve

• Reduced GHG emissions by 41% in FY17 compared to FY07 baseline, keeping them on track for a 60% reduction by 2022

• Implementing 300 energy efficient and on-site renewable energy projects across Cis-co’s real-estate portfolio

• Increasing renewable energy procurement through utility green energy programs, power purchase agreements and renewable energy certificates

• Working to generate 85% of global electricity from renewable sources by 2022

• Global Partner of the Ellen MacArthur Foundation Circular Economy program (since 2011)

Both Cisco and the information technology industry have a history of environmental awareness and sustainability that includes many new initiatives and improvements in recent years. The industry’s main environmental impacts are the carbon emissions and energy usage associat-ed with large data centers and the energy usage that occurs during the life cycle of their products. Cisco provides comprehensive reports of corporate and social responsibility that specifically identify clear goals and measurements of their current environmental impact. Cisco has increased it usage of clean, renewable energy and is planning to invest more in renewables worldwide. Hamilton Point assigns Cisco Systems, Inc. a Sustainability Matrix classification of Good for their commitment to transparency and success with their aggressive goal setting strate-gy. The company has made impactful and decisive attempts to reduce their carbon footprint and lessen the environmental impact of their cli-ents in addition to themselves

18

83.7%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Colgate-Palmolive Company





Net Income: $2.0B

Business Segments:

Oral, Personal & Home Care:

$13.2B (85%)

Pet Nutrition: $2.3B (15%)

Colgate-Palmolive Co. (CL), based in New York, NY and founded in 1806, is a leading con-sumer products company that includes many well-known brands sold worldwide. Colgate-Palmolive produces many common household and personal care brands such as Colgate Total, Palmolive, Irish Spring, Speed Stick, Softsoap and Ajax. Colgate-Palmolive operates its busi-ness in two main product segments: Oral, Personal & Home Care and Pet Nutrition. Col-gate is a global leader in the Personal Care market with liquid hand-soap, in the Oral Care market with leading toothpaste and manual toothbrush brands as well as in the Home Care market with fabric softeners and dishwashing liquids.

• Featured on Barron’s 100 Most Sustainable Companies List (2018) and Corporate Knight’s Global 100 Most Sustainable Companies (2017)

• Named to Dow Jones Sustainability Indices (2013-2017) and ranked in Newsweek Green Rankings (2015 - 2017)

• U.S. EPA ENERGY STAR Partner of the Year 2017 for the 7th year in a row, with recognition for Sustained Excellence; U.S. EPA Green Power Partnership National Top 100 (2016-2018)

• 81% of Colgate’s manufacturing facilities worldwide have achieved U.S. EPA ENER-GY STAR Challenge for Industry

• Named to the Carbon Disclosure Project’s (CDP’s) Climate Disclosure Leadership Index (2017), the CDP Climate A list (2016-2017) and the CDP Water A list (2015-2017)

• In 2017, Colgate reduced its water use per ton of production by nearly 47% vs. 2002.

• In 2017, Colgate reduced absolute GHG emis-sions from manufacturing by 27.5%, surpas-sing its 2022 25% reduction target five years in advance

• Endorsed the UN CEO Water Mandate to help advance water stewardship, sanitation and the UN Sustainable Development Goals

• As of 2017, 98% of its packaging is PVC-free

• In 2017, achieved six Zero Landfill Waste sites based on internal criteria developed from industry best practices

With products and brands in over 200 countries and territories around the world, Colgate-Palmolive has encouraged billions of people to save water by turning off their faucets when brushing their teeth. The company provides clear goals and measurements of their progress, which are available to the public. Not only have they surpassed many goals set for water and energy use efficiency, but Colgate-Palmolive has also con-sistently outlined future goals as they exceed their earlier benchmarks.

Hamilton Point assigns Colgate-Palmolive Company a Sustainability Matrix classification of Good for their commitment to lessening their carbon footprint and engaging with their large consumer base to act sustainably. The company is responsible, sustainable and transparent in their business expansion and growth of environmental awareness.

• Colgate continues to reach nearly 3 billion people with its engaging message to “Turn Off the Tap When Brushing” in over 70 countries

• Colgate remains committed to reaching its goal of using 100% sustainable palm oil and also expects to disclose 100% of the mills that supply palm oil by end of 2018

• Colgate has committed to 100% recyclabil-ity of plastics in packaging across all prod-uct categories by 2025

• Making progress on its commitment to achieve zero net deforestation by 2020

19

59.2%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

CVS Health Corporation


2017 Revenue: $184.8B

Net Income: $6.6B

Business Segments:

Pharmacy Services:

$130.6B (62.2%)

Retail/LTC: $79.4B (37.8%)


CVS Health Corporation (CVS), based in Woonsocket, Rhode Island, is a pharmacy innova-tion company devoted to helping people on their path to better health. CVS is currently the largest integrated pharmacy healthcare company in the United States, with the ability to impact consumers, payers and providers through innovative solutions. These solutions fulfill CVS’s mission by increasing access to quality care, delivering better health outcomes and lowering overall healthcare costs. The company has over 9,800 retail locations, 1,100+ walk-in medical clinics and 94 million pharmacy benefits plan members. CVS functions through three reporta-ble business segments: Pharmacy Services, Retail Pharmacy and Corporate.


• Germantown, Maryland store is the 13th CVS location to be LEED Certified

• Company fleet was named an EPA Smart-Way Carrier Partner (2017) for the 8th year in a row

• Named to Fortune’s Most Admired Compa-nies List and Change the World List (2016, 2017)

• Acknowledged by Corporate Responsibil-ity Magazine as one of the 100 Best Corpo-rate Citizens (2016)

• Named to Newsweek’s Rankings of Ameri-ca’s Greenest Companies (2017)

• Achieved a position on the Carbon Disclo-sure Project S&P 500 Climate Performance Leadership Index (2014), the Dow Jones Sustainability Index (2016, 2017) and the FTSE4Good Index (2016)

• Incorporating design and construction char-acteristics of LEED– certified buildings, such as energy and water efficiency fea-tures or the use of sustainable materials

• Requiring all suppliers of palm oil to demonstrate proof of a recognized certifi-cation and to disclose the palm oil content of their products

• Closing in on 2020 goal of reducing water use by 20 percent, having achieved an 18 percent reduction in 2018

• Working with real estate team to launch more smaller-footprint stores that use on average 25 percent less energy than larger stores

• Using enhanced routing software for fleets of delivery trucks to continue reducing GHG emissions

The most significant environmental impacts and contributors to CVS’s carbon footprint are by far the energy usage and GHG emissions that result from the company’s large retail footprint and their vast distribution and transportation network. In order to reduce the carbon footprint of their fleet, CVS plans to complete construction of a new distribution center in Kansas City in 2018, helping to reduce GHG emissions sig-nificantly. While CVS has taken measures to improve energy efficiency of their retail locations, the company could invest more in renewable energy. CVS is a socially responsible company that has a solid track record of reducing their environmental impact, which is documented in their 11 annual corporate social responsibility reports. The company understands what aspects of its business are the most damaging and has focused on improvements in those areas. Hamilton Point assigns CVS Health Corporation a Sustainability Matrix classification of Good.

• Submitted science-based emissions reduction target for approval from the Science Based Targets initiative

• Announced removal of parabens, phthalates and the most prevalent formaldehyde donors across nearly 600 store brand beauty and per-sonal care products

• In 2018, CVS plans to install LED exterior lighting at all existing retail locations in ef-forts to significantly reduce lighting con-sumption

• In 2018, CVS became a member of the UN Global Compact, an initiative that encourages other companies to adopt sustainable practices

• In 2018, CVS plans to open a new distribu-tion center in Kansas City, MO that will sig-nificantly reduce their mileage by hundreds of thousands of miles annually


20

59.3%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Danaher Corporation



Net Income: $2.5B

Business Segments:

Life Sciences: $5.7B (31.1%)

Diagnostics: $5.8B (31.7%)

Environmental & Applied

Solutions: $4.0B (21.9%)

Dental: $2.8B (15.3%)



Danaher Corp. (DHR), based in Washington, D.C., designs, manufactures and markets professional, medi-cal, industrial and commercial products and services. Danaher is a science and technology innovator dedicat-ed to helping their customers solve complex challenges and improve their quality of life. With research and development, manufacturing, sales, distribution, service and administration facilities located in more than 60 countries, Danaher has a wide influence on the environment in which it conducts its business. The company consists of four segments: Life Sciences, Diagnostics, Dental and Environmental & Applied Solutions.


In regards to environmental sustainability, Danaher loosely regulates its business segments through its Environmental, Health and Safety Pro-grams. Regular sustainability audits are conducted for each business, including those that operate in the environmental protection industry. As a result, some of these sub-companies publish their own sustainability reports.

Danaher implements strict standards, known as the Danaher Business System (DBS), which apply to all of their business segments. After receiving demands from shareholders, Danaher finally began publishing information on sustainability two years ago. With the release of new, basic sustainability reports and the fact that many of Danaher’s businesses have positive environmental impacts, we feel comfortable assign-ing Danaher a Sustainability Matrix classification of Neutral, but a specific company-wide report would do much more to accurately track progress and set attainable goals.

• Continual improvement in EHS perfor-mance, waste minimization, and prevention of pollution

• Continuing Environmental, Health and Safety (EHS) Programs, which engage em-ployees with environmental issues

• Conducting regular internal audits to en-sure company-wide compliance with envi-ronmental principles

• Water Quality Platform provides precision instrumentation and advanced purification technology to analyze, treat and manage the quality of the world’s water, from mu-nicipal and wastewater treatment facilities to lakes, streams and oceans

• Designed Shanghai office complex with environmental sensitivity and health in mind, including advanced air filtration sys-tems that purify, sanitize and ionize the internal air, removing airborne pollutants like smog, smoke and viruses (2016)

• Leica Microsystems’ packaging for the SPIDER stereomicroscope reduced pack-age volume by 50% and reduced the carbon footprint by 60 tons/year, winning the Sin-gapore Packaging Star Award and Asia Star Award (2015)

• The Beckman Coulter Diagnostics facility in Mishima, Japan has a 99% recycling rate

• Danaher is devoted to reducing packaging waste, protecting the water supply and de-fending fragile ecosystems

• Promoting Environmental Employee Aware-ness through the “Stop, Think and Speak Up” program, which requires employees to com-plete an EHS training course annually

• Videojet’s Wood Dale, Illinois facility is working towards Zero Landfill status, having reduced solid waste going to landfill by 92% since 2013

• Has 60,000 environmental monitoring sta-tions in operation, which provide real-time, early warnings of approaching floods

21

10%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Deere & Company

Accomplishments New Initiatives


Deere & Company (DE), based in Moline, Illinois, is a worldwide manufacturer of agricultural, construc-tion, forestry and turf care equipment. Deere & Co. is also currently the world’s largest producer of farm tractors. With over 60,500 employees working in factories, offices and other facilities in more than 30 coun-tries, Deere & Co. is a truly global company. Its operations are categorized into three major business seg-ments: Agriculture and Turf, Construction and Forestry and Financial Services.

Due to the nature of their industry, John Deere conducts business that is inherently harmful to the environment. Its machinery and equipment requires large amounts of non-renewable resources to operate while emitting harmful pollutants into the air over the products’ life cycles. Though Deere & Co. produces harmful products, the company has made strides to improve their environmental impact.

Deere & Company recently established aggressive eco-efficiency goals and outlined a new 2022 sustainability plan for their water and energy usage, as well as for their GHG emissions. This plan hopes to reduce the company’s carbon footprint and promote safer environmental prac-tices in the industry in which Deere & Co. operates. Outside of Deere & Co.’s five-year plan, which is to be completed by 2022, the company lacks transparency in regards to their environmental impact and continues to measure its own progress through more general, qualitative as-sessments. Therefore, Hamilton Point assigns Deere & Company a Sustainability Matrix classification of Neutral.

• Committed to reaching new 2022 Sustaina-bility goals of reducing GHG emissions by 15% through 50% renewable electricity supply and recycling 85% of total waste

• Implementing water best management practices in 100% of water scarce manufac-turing locations

• Working to reduce environmental impact, including CO2 emissions on 90% of new products and increase the use of sustainable materials by increasing recyclable, renewa-ble and recycled content


• Released a set of new 2022 Sustainability Goals

• John Deere Electronic Solutions in Fargo, North Dakota prevented more than 51 tons of garbage from being dumped into a land fill

• Every manufacturing facility has an environ-mental management system based on the ISO-14001 standard in place and has the technolo-gy to track and collect water-usage data

• Deere & Co. promotes electrical vehicle use among employees to reduce GHG emissions in places like Des Moines, Iowa and Germany

• At a Montenegro facility, employees created strategies to minimize the number of trips required to transport goods, lowering GHG emissions and using 45% less diesel fuel than other fleets

• Recognized by Ethisphere as one of the World’s Most Ethical Companies and by Fortune Magazine as one of the Top 50 Most Admired Companies (2017)

• Recognized by Forbes in the Just 100: America's Top 100 Corporate Citizens (2016)

• Member of the U.S. EPA Leadership Pro-gram since 2007

• Reduced GHG Emissions 26% per dollar of adjusted revenue from 2005 until 2014



Net Income: $2.2B

Business Segments:

Agricultural & Turf:

$20.2B (68.0%)

Construction & Forestry:

$5.7B (19.2%)

Financial Services: $2.9B (9.8%)

Other Revenue: $918M (3.0%)

22

25.1%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

eBay Inc.

eBay Inc. (EBAY), headquartered in San Jose, California, is an American multinational corporation and technology company enabling global commerce for buyers and sellers through online platforms, including the eBay Marketplace, StubHub and Classifieds platforms. eBay currently serves 160 mil-lion buyers from more than 190 markets, providing them with access to over a billion items they may not otherwise be able to find or afford. The company’s vision for commerce is that it will be enabled by people, powered by technology and open to everyone. eBay has continued to expand its addressa-ble ecommerce market as the way in which people interact with each other, brands and services dra-matically changes. The company operates in a single reportable segment known as Marketplaces.


2017 Revenue: $9.6B

Net Income: ($1.0B)

Business Segments:

Marketplaces: $9.6B (100%)



• With over $100 billion in used goods trad-ed since 1998, eBay is the largest online marketplace for reuse on the planet

• 1.2 million tons of carbon emissions have been avoided as a result of people selling their pre-owned electronics and apparel on eBay

• eBay is a member of the Business for Inno-vative Climate and Energy Policy, which works with Congress to pass meaningful energy and climate change legislation

• eBay is a founding member of Business for Social Responsibility’s Future of Internet Power working group and the Rocky Mountain Institute's Business Renewables Center, for companies seeking to expand their use of renewable energy


Since its founding, eBay has been driving a circular economy. Due to greater energy consumption at their data centers, eBay increased its us-age of water and electricity and produced more GHG emissions, while decreasing its usage of renewable energy sources in 2017 compared to 2016. However, eBay is working to lessen its footprint by investing in more renewable energy sources in hopes of using 100% renewable en-ergy by 2025.

The company launched new initiatives and goals in 2017 to promote more sustainable practices. For example, by practicing responsible water management, eBay is reducing its usage of water at data centers. Hamilton Point assigns eBay Inc. a Sustainability Matrix classification of

Good as a result of the company’s degree of awareness, transparency and commitment to these issues.

• Conserving energy and lowering carbon emissions by striving for radical efficiency in facilities and processes, generating on-site clean energy when and where appropri-ate and procuring additional clean energy from off-site sources

• Working on 2025 goal of having 100% renewable energy in the electricity supply at eBay-controlled data centers and offices

• Advancing United Nations Sustainable Development Goals in fighting climate change

• Practicing responsible water management by placing major data centers in locations that enable them to take advantage of “free cooling” from outside air and reduce the amount of water used for equipment

• Invested significantly in technology and video conferencing services to enable employees to collaborate with their teammates, customers, and partners while minimizing their travel footprint

• eBay signed on the Climate Declaration, a call to action from leading American businesses urging policymakers to tackle climate change

• eBay joined the Global Coalition to End Wildlife Trafficking Online in 2018

• 48% of electricity supply currently comes from renewable sources, as of 2017

23

44.1%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

EMCOR Group, Inc.




2017 Revenue: $7.7B

Net Income: $228.1M

Business Segments:

U.S. Mechanical: $3.0B (39%)

U.S. Electrical: $1.82B (24%)

U.S. Building: $1.80B (23%)

U.S. Industrial: $799.0M (10%)

U.K. Building: $340.7M (4%)

EMCOR Group, Inc. (EME), based in Norwalk, Connecticut, is one of the largest electrical and mechanical construction and facilities services firms in the United States. They specialize in providing construction services relating to electrical and mechanical systems in all types of facilities and in providing various services relating to the operation, maintenance, and management of facilities. EM-COR operates in five business segments: U.S. Mechanical, U.S. Electrical, U.S. Building, U.S. In-dustrial, and U.K. Building.

By performing over 13,000 projects in the U.S. and U.K., EMCOR has a significant opportunity to impact their clients’ carbon footprint and sustainability efforts through the implementation of energy efficient design and renewable energy system installations. EMCOR’s Sustaina-bility Report discusses the ways they have improved the environmental impact of their clients’ facilities. While EMCOR lacks quantitative and fully transparent goals in regards to its own sustainable practices, the company has demonstrated the ability to lessen the carbon footprint of its clients. Due to EMCOR’s actions to implement LEED engineering standards and promote alternative energy, Hamilton Point assigns EMCOR Group Inc. a sustainability matrix classification of Good.

• EMCOR has been a Gold Member of the U.S. Green Building Council since 2005 and 625 EMCOR employees are members of this organization

• EMCOR subsidiary Shambaugh and Son designed and built Dairy Farmers of Amer-ica Garden City plant, which was named Sustainable Plant of the Year by Food Engineering magazine (2018)

• EMCOR has reduced their fleet gasoline consumption by more than 840,500 gallons per year and prevented more than 8 million pounds of carbon dioxide from entering the atmosphere

• In 2017, EMCOR partnered with a firm to help them measure their sustainability efforts

• EMCOR UK introduced eight electronically powered vehicles which emit zero emissions to their fleet

• EMCOR companies have developed a number of systems for extracting, cleaning, and con-centrating methane gas to serve the transpor-tation and wholesale natural gas markets

• Design, build, and provide ongoing mainte-nance for alternative energy installations across North America

• EMCOR employs hundreds of LEED certi-fied engineers to design, construct and ret-rofit buildings to make them energy-efficient and sustainable

• Equipping service vans with GPS systems to find most direct route to clients in order to save fuel consumption and installing solar panels in their shop operations

• EMCOR provides its employees with clear guidelines to identify and comply with environmental regulatory requirements, in the form of the Environmental Overview Handbook


24

7.0%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

First Republic Bank


The financial services industry in which First Republic conducts business is relatively environmentally-friendly in nature, with its largest environ-mental impact occurring from the operations of different office branches. Despite their relatively low environmental impact, First Republic Bank continues to lack an annual sustainability report that clearly outlines their goals and initiatives oriented toward environmental responsibility.

Despite the company’s failure to report on environmental metrics, First Republic actively involves itself with community organizations and nation-wide nonprofits, making the company a socially active corporate citizen. Also, First Republic continues to offer its clients access to ESG investing strategies and has an active employee volunteer program. For these reasons, Hamilton Point assigns First Republic Bank a Sustainability Matrix classification of Neutral.

• From January 2016 to September 2017, First Republic employees volunteered al-most 13,000 hours as part of Employee Volunteer Program

• Over 1/3 of business loans have supported the expansion and growth of nonprofit organizations

• Community Youth Center named First Re-public their 2015 Corporate Partner of the Year for the bank’s work in improving fi-nancial literacy among youth in under-served areas of San Francisco


• Funded a Corporate Work Study Program that employs students from low-income families to work one day a week in entry-level posi-tions to gain firsthand work experience and learn the value of hard work, responsibility and ambition

• Launched an Employee Volunteer Program in 2015 that provides employees with 16 hours of paid time to volunteer with charitable or-ganizations of their choice

• Appointed five local leaders to a Community Advisory Board with a mission to strengthen First Republic’s current approach to commu-nity outreach and reinvestment initiatives

• Provides funding for La Cocina, which provides local, subsidized commercial kitchen space, hands on technical assis-tance and retail opportunities to low-income individuals to enter the food busi-ness as entrepreneurs

• Actively invests in organizations such as Operation HOPE, a premier financial litera-cy provider, the Central Park Conservan-cy’s “Keeping it Green” program and Fam-ily-Linc at the Lincoln Center

• Offers clients access to an ESG investing team that designs socially responsible port-folios for clients

• “Spotlights” clients who are making a posi-tive impact in the world with their wealth


First Republic Bank (FRC), a regional bank headquartered in San Francisco, California, of-fers private banking, private business banking and private wealth management services to its diverse set of customers. First Republic Bank prides itself on its commitment to client service through its core values of integrity, collaboration, respect, accountability, positivity, innova-tion and growth. The company operates in two business segments: Commercial Banking and Wealth Management.



Net Income: $758M

Business Segments:

Commercial Banking:

$2.25B (86.3%)

Wealth Management:

$356.4M (13.7%)

25

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring




Fortive Corporation

Fortive Corporation (FTV), headquartered in Everett, Washington, is an industrial growth company that spun out of Danaher in 2016. The company designs, develops, manufactures and markets professional and engineered products, software and services for a diverse set of end markets in fields like software development, robotics, transportation, energy and healthcare. Fortive focuses on innovation in two segments: Industrial Technologies and Pro-fessional Instrumentation. The Industrial Technologies segment focuses primarily on tech-nology relating to transportation and automation. However, the Professional Instrumenta-

tion segment focuses more on instrumentation and solutions, as well as sensing technologies.


2017 Revenue: $6.6B

Net Income: $1.0B

Business Segments:

Industrial Technologies:

$3.5B (53.0%)

Professional Instrumentation:

$3.1B (47.0%)

• Fortive was featured on Newsweek’s Green Rankings (2017) for the first time

• Awarded the Premier Partner Award (2017) by United Way

• Thomson, a part of Fortive’s (then Dana-her’s) automation platform, earned recogni-tion as a Partner-level supplier in the John Deere Achieving Excellence Program, the highest available supplier rating (2015)

• Fortive’s Portescap team served its communi-ty in India by supporting innovation at local technology nonprofits, providing career guid-ance to young people, and protecting the envi-ronment with cleanups, tree planting and edu-cation during 2017

• Announced commitment to improving envi-ronmental performance, waste minimization, and prevention of pollution

• Design, operate, and maintain their facilities in a manner that minimizes emissions and waste

• Attempting to meet or exceed the require-ments of all environmental laws, regula-tions, and permit conditions that apply to their work

• Integrating sound environmental practices into applicable business functions, includ-ing procurement, product design, testing and manufacturing

• In compliance with the Dodd-Frank Act, Fortive commits itself to sourcing materi-als from companies that share their values in regards to human rights, integrity and environmental responsibility

Similar to its former parent company’s “Danaher Business System,” Fortive adheres to its own specific business philosophy outlining its guiding principles and values and known as the Fortive Business System (FBS). In addition to FBS, Fortive’s commitment to Kaizen, the Jap-anese concept of continuous improvement, suggests that the company could someday be just as innovative in their sustainability initiatives as they are in their technological advancements as an industry leader in many fields.

It's been over two years since Fortive’s leave from Danaher and they still have yet to publish a sustainability report or release any formal announcements about specific environmental sustainability initiatives. Fortive has made progress on their sustainability practices since break-ing off from Danaher, as indicated by their new position on Newsweek’s Green Rankings. Because they are still a young company and have room for improvement, Hamilton Point assigns Fortive Corporation a sustainability Matrix classification of Neutral. As a leader in its indus-try, Fortive needs to abide by Kaizen and work to develop concrete and transparent environmental sustainability goals.

26

18.7%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Johnson & Johnson




Net Income: $1.3B

Business Segments:

Pharmaceutical: $36.3B (47.4%)

Medical Devices: $26.6B (34.8%)

Consumer: $13.6B (17.8%)

Johnson & Johnson sets environmental sustainability targets and proactively accesses their sustainability initiatives to ensure that they are on track to reach their goals. The company is committed to lessening its carbon footprint and reducing water and electricity use across all opera-tions. Through the sustainable packaging and design of its products and increasing their usage of renewable energy, Johnson and Johnson has demonstrated that they take environmental sustainability seriously. As a result of these initiatives, Hamilton Point assigns Johnson & Johnson

a Sustainability Matrix classification of Good.

Johnson & Johnson (JNJ), based in New Brunswick, NJ, is a multinational medical device, pharmaceutical and consumer packaged goods company that has approximately 134,000 employ-ees worldwide. The company’s primary focus is developing products that relate to human health and well-being. Though Johnson & Johnson is a holding company that has more than 230 operat-ing companies, they operate under three segments: Consumer (which includes over-the-counter pharmaceuticals), Pharmaceutical and Medical Devices.

• Achieved a Top 10 ranking on Newsweek’s Green Rankings (2017)

• Reduced absolute carbon emissions by 21% since 2010 (Scope 1 and Scope 2)

• Member of the Carbon Disclosure Project’s Leadership Index (2010-2017)

• 25% of total electrical consumption is gen-erated by renewable sources

• In 2017, Johnson and Johnson joined the Climate Leadership Council, a policy insti-tute created to promote a carbon dividends framework in the U.S.

• Awarded the U.S. EPA’s SmartWay Excel-lence Award (2017) in recognition of their environmental performance

• Recognized by Practice Green Health as a Champion for Change, received Sustaina-bility and Social Responsibility Award from CVS Health and received two Envi-ronmental Leader Products & Projects

• Since 2005, the CO2 Capital Relief program has resulted in 201 completed projects and an avoidance of 268,023 MT of Co2 emissions annually, as of 2017

• In 2017, launched their Waste-to-Value pro-gram which provides internal and external best practices for recycling and reuse solu-tions to manufacturing sites

• By the end of 2017, the company’s installed on-site clean energy technology capacity reached 54.7 megawatts

• In 2017, 13 new sites earned LEED certifica-tion, bringing the total number of LEED certi-fied buildings to 44

• In 2017, 24 products earned EARTHWARDS recognition, bringing the total number of products to 118 that have passed sustainable assessments

• Johnson & Johnson is on track to produce 35% of electricity from renewable sources by 2020 and aspires to power all facilities with renewable energy by 2050

• On track to reduce absolute carbon emis-sions 20% by 2020, and 80% by 2050

• Encouraging suppliers to disclose environ-mental sustainability goals and initiatives

• On track to have 20% of products achieve EARTHWARDS recognition for sustaina-ble innovation improvements by 2020

• Requiring all new buildings and renova-tions with a cost of at least $5M to be LEED Certified and all manufacturing and R&D sites to have ISO-14001 Certification


27

68.1%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Littelfuse, Inc.






Net Income: $119.5M

Business Segments:

Electronics: $661.9M (54.2%)

Automotive: $453.2M (37.1%)

Industrial: $106.4M (8.7%)

Littelfuse Inc. (LFUS), based in Chicago, Illinois, is a multinational electronic manufacturing company that primarily produces circuit protection products, which are vital components in virtually every market that uses electrical energy, including consumer electronics, automo-biles, commercial vehicles and industrial equipment. The company is expanding into adjacent markets including power distribution centers for mining operations, generator controls and protection for marine applications, heavy-duty switches for commercial vehicles and electro-mechanical sensors used in the automotive industry. Littelfuse operates within three business segments: Electronic, Automotive and Industrial.

• Received the TTI Americas Supplier Excel-lence Award (2017)

• Littelfuse’s Wuxi, China plant won the Excellence Award from the Association for Manufacturing Excellence as a result of a comprehensive safety program, marking the first time the award was given to a plant outside of North America (2016)

• Littelfuse employed a chemical engineer to monitor environmental regulatory matters and believe the company is in compliance with applicable environmental laws and regula-tions

• Reducing or eliminating wastes by modifying production, maintenance, facility processes, materials substitution, conservation, recycling and re-using materials

• Littelfuse continues to monitor and control wastewater and solid waste generated from operations, industrial processes and sanita-tion facilities

• Controlling and treating air emissions of volatile organic chemicals, aerosols, corro-sives, particulates and ozone depleting chemicals

• Reducing the amount of raw materials used in operations, reusing, rather than disposing of materials whenever possible and pro-moting recycling and the use of recycled materials

• Continuing to monitor environmental per-formance on a regular basis and communi-cate progress to all interested parties

Littelfuse does not publish clear and measureable environmental sustainability goals, but does discuss general ways to mitigate its impact on the environment. The company discloses little information about the environmental footprint of its products and manufacturing processes. As a leader in electrical energy market, Littelfuse could use its powerful role to promote solar power to its large client base. For these reasons, Hamilton Point assigns Littelfuse, Inc. a Sustainability Matrix classification of Neutral.

.

28

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

NIKE, Inc.

NIKE, Inc. (NKE), headquartered in Beaverton, Oregon, designs, develops and markets sports and lifestyle footwear, apparel, equipment, accessories and services. Nike is the largest seller of athletic footwear and athletic apparel in the world. Most of the company’s products are made by third-party manufacturers, and these products are then sold through retail ac-counts, NIKE-owned retail stores, websites and independent distributors. Popular Nike brands include Hurley, Jordan and Converse.


• Footwear and apparel have seen a 2.5 per-cent decrease in average carbon footprint since FY15

• In FY17, NIKE Air Manufacturing Innova-tion facilities diverted more than 95% of manufacturing waste from landfills, which was 51 million pounds of materials

• In 2017, NIKE was recognized as using the most recycled polyester in the industry for the fourth straight year

• In FY17, more than one-half of NIKE foot-wear finished goods manufacturing waste was recycled

• NIKE is on track to reach 100% renewable energy across North America locations by 2019 and worldwide locations by 2025

• Contract with only the best material suppli-ers to ensure that 100% of their materials are sourced responsibly and sustainably

• NIKE evaluates the sustainability of its products through their Material Sustaina-bility Index, Apparel Sustainability Index, and Footwear Sustainability Index

• 2020 goal of reducing the amount of fresh water used in dying process by 20 percent

• Working towards goal of sourcing 100 percent of their cotton more sustainably by end of FY20


While Hamilton Point was disappointed to hear about the allegations of inappropriate behavior at the company, we were pleased to hear that NIKE has recently promoted two women to senior leadership roles and those responsible for the unacceptable behavior have stepped down. NIKE has been a pioneer in sustainability for nearly 30 years. The company is committed to lessening its carbon footprint by developing sus-tainable innovations like Flyleather and air soles. In their detailed sustainability reports, NIKE discusses their sustainability initiatives and provides progress updates on their measurable goals of increasing recycling, decreasing water usage and waste, and adopting renewable ener-gy use. Hamilton Point assigns NIKE, Inc. a Sustainability Matrix classification of Good as a result of their measurable progress towards im-proving their environmental impact.

• 75% of all NIKE shoes and apparel now con-tain some recycled material

• The NIKE Air Max 270 Air sole contains more than 70% recycled manufacturing waste

• A dye-coloring process for Air soles allows 99% of recoverable dye water to be recycled

• In 2017, NIKE signed power purchase agree-ments that will allow them to source 100 per-cent renewable energy in North America in 2019

• In 2017, NIKE started utilizing Flyleather in its footwear in order to use less water, have less of a carbon footprint, and produce less waste



Net Income: $4.2B

Business Segments:

Footwear: $21.1B (61.3%)

Apparel: $9.7B (28.2%)

Converse: $2.0B (5.8%)

Equipment: $1.4B (4.1%)

Corporate: $75M (.22%)

Global Brand Divisions:

$73M (0.21%)


29

58.6%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring


Phillips 66

Phillips 66 (PSX), headquartered in Houston, Texas, became an independent, publicly traded company as a result of the restructuring of ConocoPhillips in 2012. The company is currently organized into four operating segments: Midstream (gathers, processes, transports and markets natural gas), Chemicals (manufactures and markets petro-chemicals and plastics), Refining (buys, sells and refines crude oil) and Marketing & Specialties (purchases, re-sells and markets refined petroleum products; manufactures and markets specialty products).


2017 Revenue: $102.4B

Net Income: $5.2B

Business Segments:

Marketing & Specialties:

$72.3B (70.6%)

Refining: $25.2B (24.6%)

Midstream: $4.8B (4.7%)

Chemicals: $5M (0%)

• In 2017 alone, Phillip 66 employees volun-teered 73,000 hours for organizations like Habitat for Humanity and Trees for Hou-ston

• Phillips 66 donated $400,000 to the Gulf Coast Initiative that will support conserva-tion efforts in the wetlands of Texas and Louisiana

• In 2017, environmental giving helped pre-serve 21,000 acres of habitat

• Over 1/3 of U.S. refineries earned an EN-ERGY STAR certification from the U.S. EPA, recognizing their voluntary efforts to reduce GHG emissions through energy efficiency; the certification signifies that the refinery performed in the top 25% of similar facilities nationwide

• At the 2017 “Operation Clean House” event, 75 employee volunteers collected and safely disposed of 12,570 pounds of hazardous waste

• The company has invested more than $6 bil-lion in environmental projects and sustaining capital

• All refineries have Environmental Operation Limits, and upgrades are being made to at-mospheric relief vents and valves to achieve a higher standard of atmospheric venting

• Implemented a $200 million project to replace electricity poles with metal stanchions to im-prove power supply reliability to the facility and local community at the Wood River Re-finery in Illinois

• The Phillips 66 Research Center is using technology to find ways to use less energy and water and is developing alternative energy systems like solar and fuel cells

• Monitoring GHG emissions from their op-erations and lowering emissions by increas-ing energy efficiency

• Midstream business applies pipeline integ-rity management to assess and mitigate pipeline risks, thereby reducing the likeli-hood and consequence of an incident

• Regularly auditing energy usage and envi-ronmental impact for each of its business units

• Humber refinery in the U.K. has a 120-acre woodland planted with more than 67,000 native species of trees and shrubs


Similar to other companies within this typically less-environmentally friendly industry, Phillips 66 struggles with achieving substantial envi-ronmentally sustainable practices. Along with a lack of detailed reporting and monitoring, it appears that Phillips 66 has at least one major environmental issue per year, ranging from underground leakage to emissions permit violations.

Within the information that Phillips 66 does provide, many of the goals and objectives are broad and not quantifiable or clearly measurable. Hamilton Point assigns Phillips 66 a Sustainability Matrix classification of Poor for their lack of transparency on specific goals or targets.


30

10.0%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Raytheon Company



Raytheon Company (RTN), headquartered in Waltham, Massachusetts, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions throughout the world. The company develops technologically advanced and integrated prod-ucts, services and solutions. Their core markets are: sensing; effects; command, control,

communications, computers, cyber and intelligence; mission support; and cyber security. Raytheon serves domestically and internationally as a prime contractor and subcontractor on a broad portfolio of defense and other related programs primarily for government customers.

Raytheon recognizes the importance of instituting environmentally safe practices and continues to make steady progress on achieving their sustainability goals and objectives by 2020. Because more than 90% of the company’s GHG emissions derive from energy consumption, Ray-theon has leveraged its technology expertise to develop systems that recognize and correct energy inefficiencies. As a result of their sustaina-bility efforts, Hamilton Point assigns Raytheon Company a Sustainability Matrix classification of Good.

• Raytheon was named the most community-minded company in the U.S. Industrials Sector in Point of Light’s Civic 50 ranking (2017) and placed into the Top 25 of Newsweek’s Green Rankings of U.S. com-panies (2017)

• In 2017, Raytheon pledged more than $600,000 to help hurricane victims and brought much-needed supplies to Puerto Rico

• Raytheon has seven sites earning TRUE Zero Waste Certification

• Received ENERGY STAR Partner of the Year Sustained Excellence Award from the U.S. EPA for the 11th consecutive year

• Raytheon was named on the EPA’s Green Power Partnership List (2017) and was featured on CR Magazine’s 100 Best Cor-porate Citizens list (2017)

• In 2017, Raytheon’s headquarters in Wal-tham, Massachusetts earned the ENERGY STAR certification, becoming the compa-ny’s first facility to earn this honor



Net Income: $2.0B

Business Segments:

Missile Systems: $7.8B (30.8%)

Space & Airborne Systems: $6.4B (25.3%)

Intelligence, Information &

Services: $6.2B (24.5%)

Integrated Defense Systems: $5.8B (22.9%)

Forcepoint: $608M (2.4%)

Elminitations: ($1.5)B (-5.9%)

• Raytheon is integrating a network of sensors, meters, data loggers, and controls at facilities to conserve energy, reduce maintenance costs, improve productivity, and minimize each building’s environmental footprint

• In 2017, Raytheon rolled out cloud-based integrated collaboration services globally and upgraded the reliability and performance of their global videoconferencing service, sup-porting greater collaboration and reducing the need for employee travel

• At the end of 2017, 94% of materials and parts in Raytheon’s standard parts/materials list were free of cadmium and hexavalent chromium, which are hazardous compounds

• In 2017, Raytheon completed the construction of a major energy efficient data center

• In 2017, 3% of their electricity came from renewable sources, including their three on-site solar projects and wind farms in Texas and the Midwest

• Working to decrease energy consumption and water use by 10%, obtain zero waste certification at 20 sites, increase solid waste diversion rate to 82%, reduce GHG emis-sions by 12%

• Obtain sustainability commitment from 90% of key preferred suppliers and reduce the environmental impact of supplier pack-aging by 10%

• Deploy next-generation virtual collabora-tion environment to 100% of locations

• Switching to energy-efficient LED lighting, installing state-of-the-art building automa-tion systems, and implementing Smart Campus technologies

• Energy team analyzes monthly data, con-ducts energy audits, shares best practices, and identifies candidate energy projects in order to reduce energy consumption


31

62.9%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Roper Technologies, Inc.



2017 Revenue: $4.6B

Net Income: $972M

Business Segments:

Radio Frequency Technology: $1.9B(41.3%)

Medical & Scientific Imaging: $1.4B (30.4%)

Industrial Technology: $784M (17%)

Energy Systems & Controls:

$551M (12%)

Roper Technologies, Inc. (ROP), based in Sarasota, Florida, is a diversified technology company that designs and develops software and engineered products and solutions. The company serves a variety of niche end markets that include healthcare, transportation, commercial construction, food, energy, water, education and academic research. Roper Technologies’ four reportable segments include: Medical & Scientific Imaging, Radio Frequency Technology, Industrial Technology and Energy Systems & Controls.

• TransCore facility in New Mexico partici-pated in a 2011 water conservation pro-gram by converting from traditional land-scaping to xeriscaping, a method developed for arid or semiarid climates using drought-tolerant plants and efficient irrigation, sav-ing 750,000 gallons of water per year

• Freight Match operation matches empty trucks with goods that need to be shipped, minimizing the number of empty miles and saving 2,500 gallons of fuel per year

• 2010 Energy Savers Award from the U.S. Department of Energy’s Industrial Tech-nologies Program

• Horizon operation leases space in an EN-ERGY STAR certified building; Northern Digital operation is a member of Sustaina-bility Waterloo, an organization dedicated to reducing its members’ carbon footprint

Roper’s operations have the ability to improve the environment and the lives of people. For example, they are working to improve the availa-bility and quality of drinking water in areas where people lack access. However, Roper continues to lack a full environmental sustainability report that could provide detailed measurements of their environmental impact.

While Roper does have a brief document about their sustainability operations on their website, the company fails to provide any quantitative details about its carbon footprint and does not currently have any specific and measurable goals relating to environmental sustainability. For these reasons, Hamilton Point assigns Roper Technologies, Inc. a Sustainability Matrix classification of Neutral.

• Reducing emissions from transportation by reducing idle time, congestion, fuel con-sumption and using EPA-approved vehicle emissions measurement systems

• Supporting diverse research fields– from improving the efficiency of the internal combustion engine to studying aerosols and common air pollutants

• Following comprehensive recycling, com-post and water reduction programs

• Continuing to engineer production facilities to reduce or eliminate the discharge of pol-lutants, to install energy efficient lighting and equipment and to seal building leaks to help reduce GHG emissions


• Improving water management by developing more timely leak identification and improving water flow management

• Working to increase the amount of house-holds with access to drinking water by purify-ing municipal drinking water with low energy consumption

• Reducing the number of customers experienc-ing intermittent water supply


32

n/a

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Schlumberger Limited



Net Income (Loss): ($1.5B)

Business Segments:

Production: $10.6B (34.9%)

Drilling: $8.4B (27.6%)

Reservoir Characterization:

$6.8B (22.4%)

Cameron: $5.2B (17.1%)

Schlumberger Limited (SLB), based in Houston, Texas, is the world's leading provider of technology for reservoir characterization, drilling, production and processing to the oil and gas industry. Working in more than 85 countries and employing approximately 100,000 peo-ple, Schlumberger supplies the industry's most comprehensive range of products and services, from exploration through production and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery. Its main segment of business is Oilfield Services, including Drilling, Reservoir Production and Reservoir Characterization.

As a global technology and industry leader, Schlumberger extends their expertise to developing systems that mitigate their environmental impact and decrease their usage of water. The company has demonstrated that they are committed to reducing their carbon footprint and im-proving the sustainability of their industry through the commercialization of new technologies, better data collection, and more accurate measurement.

The company releases updated and detailed sustainability reports that describe their environmental initiatives and provide quantitative meas-urements of their carbon footprint. Although Schlumberger has made efforts to reduce its environmental impacts, its industry is inherently harmful for the environment. Hamilton Point assigns Schlumberger Limited a Sustainability Matrix classification of Neutral.


• The Schlumberger Stewardship Tool is a software that incorporates sustainability into their engineering by modeling efficiency gains at the wellsite that yield a lower envi-ronmental footprint

• Continue to report to the Carbon Disclosure Project

• Aligning with the United Nations Sustaina-ble Development Goals of reducing envi-ronmental impacts and fostering technology innovation

• Continue to develop technologies that can help their customers optimize production and reduce their environmental impacts

• Schlumberger has 40 carbon capture and storage projects around the world

• The Cheyenne facility is saving more than three million gallons of water annually af-ter fixing inefficiencies

• Schlumberger’s industry-leading rate of disclosure for chemical constituents is 99.96%

• In 2017, Schlumberger recycled 80 tons of lithium metal batteries

• Received IR Magazine’s Best in Sector: Energy Award (2016); ranked 4th in the energy sector (US) and 10th in the energy sector (World) in the Newsweek 2016 Green Rankings


• In 2017, the company improved their ability to manage water use by designing a new water-modeling software

• In 2017, Schlumberger became a member of IPIECA– the global oil and gas industry asso-ciation for environmental and social issues

• Schlumberger Carbon Services helps compa-nies avoid emissions through the provision of services and technologies for long-term geo-logical CO2 storage

• In 2017, Schlumberger directed significant effort at increasing the accuracy of their emis-sions measurements by adding more data sources, implementing more accurate meas-urement systems, and expanding the geo-graphic scope of their emissions scrutiny

33

50%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring


The Charles Schwab Corporation

The Charles Schwab Corporation (SCHW), based in San Francisco, California, is an American financial services company that provides wealth management, securities brokerage, banking, asset management, custody and financial advisory services. The company serves nearly 7,000 RIAs and has 10.8 million active brokerage accounts, 1.6 mil-lion corporate retirement plan participants and 1.2 million banking accounts (as of December 31, 2017). As of June 30, 2018 Charles Schwab has over $3.36 trillion in client assets and operates over 345 branches in the U.S, Puerto Rico and London. Schwab operates within two segments: Investor Services and Advisor Services.


2017 Revenue: $8.6B

Net Income: $2.4B

Business Segments:

Investor Services: $6.2B (72.1%)

Advisor Services: $2.4B (27.9%)

• Selected as one of FORTUNE “World’s Most Admired Companies” (2017)

• New campus in Austin, Texas incorporates sustainable materials and systems, designed to meet LEED Gold standard certification

• Named to the Civic 50 by Points of Light (2017)

• From 2011 to 2016, increased energy effi-ciency by 28%, consuming 8% less energy in 2016 compared to 2011, while increasing their real estate footprint

• From 2011 to 2016, reduced carbon emis-sions by 12% (roughly equivalent to re-moving 2,000 passenger cars from the roads), while increasing their real estate footprint and employing more people

• Schwab Corporate Real Estate tracks and manages performance data such as carbon emissions, energy and water consumption, Energy Star scores, and volume of environ-mentally favorable purchases

• Continues to pursue a “paperless” work environment by using paper with recycled content and encouraging their clients to go sign up for electronic trade confirmations, account statements and tax reporting docu-ments

• Environmental performance disclosed an-nually to the Carbon Disclosure Project

• Offering bike and preferential parking for carpools and vanpools

• Promoting a Socially Conscious Funds list of ETFs and Mutual Funds

Schwab employs environmentally friendly practices in order to have as small an environmental footprint as possible. The company has a brief Environmental Stewardship Report that outlines general sustainability objectives and initiatives, but fails to publish any specific goals relating to environmental sustainability. Although Charles Schwab has taken actions to increase recycling efforts and decrease energy usage, the company fails to incorporate any measureable goals into their Environmental Stewardship Report. For these reasons, Hamilton Point as-signs The Charles Schwab Corporation a Sustainability Matrix classification of Neutral.

• Schwab’s exchange traded fund screener and mutual fund screener both have a “socially conscious” filter that allows clients to search for and compare Socially Responsible Invest-ing (SRI) funds

• Cell phones, computers, office equipment and all other electronic equipment are recycled appropriately through recyclers when they cannot be donated

• Each major site is benchmarked using the U.S. EPA Energy Star program

• Offers a Commuter Tax Savings Plan that allows employees to pay for public transport using pre-tax dollars, provides preferential parking for carpools and promotes telecom-muting opportunities for qualified employees


34

10.5%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

The TJX Companies, Inc.

TJX has long been committed to pursuing initiatives that are smart for business and good for the environment. As a result of their increasing global store count in 2016, the company has launched initiatives to reduce their environmental impacts. Because the majority of the compa-ny’s carbon footprint is from store electricity usage and fuel burned for product transportation, TJX has launched projects to increase the ener-gy efficiency of buildings and reduce fuel consumption.

TJX has a detailed and thorough environmental sustainability report that outlines goals and sustainability initiatives. However, the report fails to provide quantitative measurements of the company’s overall carbon footprint, including GHG emissions and electricity usage. Due to its environmental consciousness and commitment to lessening its carbon footprint, Hamilton Point assigns The TJX Companies, Inc. a Sustaina-bility Matrix classification of Good.

The TJX Companies, Inc. (TJX), headquartered in Framingham, Massachusetts, is a world-wide leading retailer for off-price apparel and home fashions. The company has over 4,000 stores that offer value propositions of brand, fashion, quality and prices that are generally 20% to 60% below department and specialty store regular prices on comparable merchandise. TJX employs synergistic strategies across all of its business operations and differentiates itself from traditional retailers with opportunistic buying strategies and a flexible business model. The company operates in four major business divisions: Marmaxx and HomeGoods, which are both in the United States, TJX International and TJX Canada.




Net Income: $2.6B

Business Segments:

Marmaxx: $22.2B (61.8%)

HomeGoods: $5.1B (14.2%)

TJX International: $4.9B (13.6%)

TJX Canada: $3.6B (10%)


• In 2016, purchased Green-e certified renew-able energy certificates in Canada, avoiding over 18,000 metric tons of CO2

• Implemented emissions reduction initiatives that, on a global basis, reduced their carbon footprint by more than 17,500 metric tons of CO2

• In Canada, in 2016, the wind energy genera-tion TJX supported helped avoid over 18,000 metric tons of CO2 emissions — the equivalent to taking over 3,800 cars off the road for one year or planting 17,000 acres of trees

• In 2016, TJX installed solar panels on two distribution centers and purchased more than 27 million kilowatt-hours of renewable ener-gy

• TJX has a Global Environmental Sustaina-bility Committee that seeks to understand the environmental impacts of business operations and provide guidance on how to best conserve resources

• On track to achieve their 2020 goal to re-duce global GHG emissions per dollar of revenue by 30% against a 2020 baseline

• Continue to improve the efficiency of the lighting, heating, ventilation and air condi-tioning technologies within their stores, home offices, and distribution centers

• Active member of the U.S. EPA Smart-Way Transport Partnership, a program that seeks to find innovative ways to reduce both fuel consumption and GHG emissions

• In 2017, TJX received the New England Environmental Merit Award from the U.S. EPA

• Over the past five years, TJX has imple-mented emissions reduction projects that have helped reduce their global carbon footprint by over 50,000 metric tons of carbon dioxide and saved the Company an estimated $15 million

• In 2016, achieved Carbon Disclosure Pro-ject score of A– and was included on the FTSE4Good Index for the 16th consecutive year

• Bergheim, Germany center received the Silver Award for Best Sustainable Design by German Sustainable Building Associa-tion

• TJX has six LEED-certified buildings Progress & Evaluation

35

27.7%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Unilever PLC




Net Income: $5.3B

Business Segments:

Personal Care: $23.2B (38.4%)

Foods: $14.1B (23.4%)

Home Care: $11.9B (19.7%)

Refreshment: $11.2B (18.5%)

Historically, the consumer goods industry has not posed much of a threat to the environment. In order to continue this, Unilever has invested significant resources toward ensuring that it does not contribute to climate change or pollution. The company has abided by the Paris Agree-ment through its efforts to increase the amount of energy purchased from renewable sources and decrease deforestation. Additionally, Unile-ver has launched sustainable brands and products, like water purifiers. In fact, their “Sustainable Living” brands grew 50% faster than the rest of the business, delivering more than 60% of Unilever’s growth in 2016. Due to their detailed and transparent sustainability reports, Hamilton Point assigns Unilever PLC a Sustainability Matrix classification of Good.

• Pureit, their water purification business, has provided 96 billion liters of safe drinking wa-ter since 2005 through the sale of water puri-fiers

• By the end of 2017, the total volume of their agricultural raw materials that were sustaina-bly sourced increased to 56%

• In 2017, Unilever made further commitments on waste, ensuring that all their plastic pack-aging will be fully reusable and recyclable by 2025

• In 2017, invested in innovative technologies that make it possible to recycle small, multi-layered sachets in which many of their prod-ucts are sold, especially in emerging markets

• Unilever has reduced water usage by 2% through innovations such as low rinse laundry products

• Becoming carbon positive by sourcing 100% of their energy across all operations from renewable sources by 2030 and elimi-nating coal from their energy mix by 2020

• Working to achieve zero net deforestation and eliminate deforestation from agricul-tural commodity supply chains like palm oil

• Working to halve the water associated with consumer use of products and the waste associated with the disposal of products by 2020

• Making efforts to source 100% of agricul-tural raw materials sustainably

• Working to halve the GHG impact of prod-ucts across the lifecycle by 2030

• By the end of 2017, 33.6% of total energy use across manufacturing operations came from renewable sources

• Since 2008, Unilever’s manufacturing op-erations have seen a reduction in total waste to landfill of around 98% per ton of production

• During 2017, Unilever maintained zero non-hazardous waste to landfill across their global factory network

• Awarded a place on the CDP’s A Lists for Climate, Water, Forests and Supplier En-gagement (2017)

• Ranked the most sustainable food and bev-erage company in Oxfam’s Behind the Brands Scorecard in both 2015 and 2016



Unilever PLC (UL), based in London, United Kingdom, is a large, multinational consumer goods company. With 161,000 employees in over 190 countries, Unilever has a global impact and reaches 2.5 billion consumers on any given day. The company is comprised of more than 400 brands, and some of its more popular brands include Axe, Ben & Jerry’s, Dove, Hellman’s, Lipton, Magnum, St. Ives, Vaseline and Wall’s. The Unilever Sustainable Living Plan (USLP) is central to the company’s mission and establishes the following three goals: 1) Help more than a bil-lion people take action to improve their health and well-being by 2020, 2) Halve the environmental impact of the making and use of Unilever products by 2030 and 3) Enhance the livelihoods of millions of people across the value chain. Unilever operates in four segments: Personal Care, Foods, Home Care and Refreshment.

36

42.9%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

United Technologies Corporation




Since 1992, UTX has set environmental sustainability goals in efforts to reduce their GHG emissions and water usage, while also improving the sustainability practices of their supply chain. Every five years, UTX sets aggressive new sustainability goals for their environment, health, and safety performance. Their current 2020 goals challenge them to continue to build on their legacy to make improvements in the environ-mental performance of their operations, the sustainability of their products, and to make improvements in the sustainable practices of their supply chain. While UTX operates in multiple environmentally harmful industries, the company implements sustainable initiatives and practic-es to mitigate its carbon footprint. Hamilton Point assigns United Technologies Corporation a Sustainability Matrix classification of Good.

• In 2016, UTX partnered with National Ge-ographic to show how advocates, scientists, and businesses can develop technology to protect the air, land, and water as the world’s rising population reshapes cities

• UTX is a participant in the Product Sustain-ability Roundtable, a group that works to address the environmental impacts of prod-ucts

• Since 1997, tripled the size of their busi-ness while reducing their GHG emissions by 33% and water consumption by 62%

• 35 LEED-certified buildings since 2008, including 22 factories, 10 offices, and 3 R&D facilities

• UTX’s Pratt and Whitney’s Gear Turbofan jet engines reduce fuel use by 16%, nitrogen ox-ide emissions by 50% to the regular standard and noise footprint by 75%

• UTX’s Otis’s Gen2 elevator uses as much as 75 percent less energy than a traditional ele-vator when coupled with a regenerative drive

• Announced goal of achieving a 15 percent reduction in GHG emissions by 2020

• 2020 commitment to a 10% reduction in the amount of hazardous waste produced as com-pared to 2015 baseline performance

• Developing energy-efficient solutions for green buildings that can change how cities urbanize

• Requiring their preferred suppliers to annu-ally reduce their operational environmental impacts, including GHG emissions

• Setting the standard for fuel efficiency, emission reduction and lower noise with their Geared Turbofan jet engine

• Adhering to a goal of a 3% annual reduc-tion in GHG emissions target, consistent with the UN Intergovernmental Panel on Climate Change (IPCC) target of 80% low-er GHG emissions by 2050

• Working to reduce water consumption by 25% by 2020

United Technologies Corporation (UTX), headquartered in Farmington, Connecticut, pro-vides high technology products and services to building systems and aerospace industries worldwide. With products such as elevators, HVAC systems and escalators, the company aims to promote integrated, high-performance buildings that are safer, smarter and more sustainable. UTC is divided into four business segments: UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Otis.



Net Income: $4.5B

Business Segments:

UTC Climate, Controls &

Security: $17.8B (29.6%)

Pratt & Whitney: $16.5B (27.4%)

UTC Aerospace Systems:

$14.7B (24.4%)

Otis: $12.3B (20.4%)

37

44.8%

Key Statistics

Hamilton Point


Ind

ust

ry

Company


Alternative ESG

Scoring

Waters Corporation




The life science industry in which Waters operates does not pose much of a threat to the environment. Waters embraces the following defini-tion of sustainability: “development that meets the needs of the present without compromising the ability of future generation to meet their own needs.” The company claims that it is committed to addressing the challenges of today and tomorrow, including climate change. While the company does have a brief section on their website that outlines their general environmental initiatives, Waters has not updated its environ-mental sustainability report since 2014 and has not released any short term or long term sustainability goals since 2014. As a result of the com-pany's lack of transparent and measurable goals, Hamilton Point assigns Waters Corporation a Sustainability Matrix classification of Neutral.

• In 2013, the company achieved a 15 per-cent reduction in the amount of energy and solvents used in their products compared to 2006

• In 2013, Waters reduced their absolute en-ergy use below that of 2008, achieving an 18% reduction against their revenue

• Waters is using a sample and testing protocol that delivers continued quality assurance for customers while achieving sustainability goals

• Implemented a change in testing process that reduces their reliance on Acetonitrile, a poten-tially toxic substance

• An internal sustainability group develops increasingly robust data with respect to the Company’s utilization of carbon producing substances in an effort to reduce their car-bon footprint

• Actively pursuing pollution prevention, waste reduction and the conservation of natural resources in all of their operations

Waters Corporation (WAT), headquartered in Milford, Massachusetts, develops innovative analytical science solutions to support customer discoveries, operations, performance, and reg-ulatory compliance. Specifically, the company designs, manufactures, sells and services ultra performance liquid chromatography, high performance liquid chromatography. Chromatog-raphy columns and chemistry products, mass spectrometry systems, thermal analysis and rhe-ometry instruments. Waters operates in two segments: Waters Division and TA Instruments.


2017 Revenue: $2.3B

Net Income: $20.3M

Business Segments:

Waters Division: $2.0B (89%)

TA Instruments: $262M (11%)

38

n/a

2018 Sustainability Report Disclosure

Our goal at Hamilton Point is to manage money for individuals and

institutions in a responsible manner that puts client goals at the fore-

front of all our decisions. Thus, the purpose of the 2018 Hamilton

Point Global Core Sustainability Report is first and foremost to in-

form our clients of the impacts that we believe their investments had

on the environment and to showcase many of the ways that the com-

panies of Hamilton Point’s Global Core Equity Strategy are striving

to become better citizens of our nation and our planet. This assess-

ment also serves as a way in which Hamilton Point can gain further

insight into the companies and industries in which we invest. We

believe this process helps us to identify companies that we believe

are of the highest quality.

Assessing the impacts that all of our daily decisions have on the envi-

ronment is becoming an increasingly important aspect of our culture,

and we believe this is no less true for investing. Through passion, in-

novation and commitment, our society can learn to live in a more sus-

tainable equilibrium with the earth than we do today; however, we

must acknowledge that although we strive for sustainability, we do

not have all of the answers yet. People still need gasoline to drive

their cars to work, coal to heat their houses and fertilizer to help pro-

duce enough food for approximately 7.5 billion mouths. Many of the

world’s largest companies, who use some of the largest portions of

natural resources, like Alphabet, are also the ones that we believe will

create the solutions for the problems of tomorrow through their in-

sight, engineering and research. We invest in these companies, not

only because they produce valuable goods and services for today, but

because we believe their past success has proven their ability to antic-

ipate the needs of tomorrow’s consumer. This analysis attempts to

highlight the sustainability policies and accomplishments of our

Global Core Equity Strategy companies as candidly as possible,

while realistically assessing their environmental impacts. In doing so,

we believe that our company—like so many found in this report—

can be both environmentally conscientious and economically pros-

perous.

Finally, this report reflects our current Global Core Equity Strategy

holdings as of June 30, 2018. It is not the goal of this report to evalu-

ate all of the investment merits of a security. The information con-

tained herein should not be construed as personalized investment ad-

vice. Past performance is no guarantee of future results. The views

and opinions expressed herein are those of Hamilton Point and are

subject to change without notice. Companies identified above are

holdings and are subject to change without notice and this report

should not be considered a recommendation to purchase or sell any

particular security. It should not be assumed that any of the holdings

listed were or will be profitable, or that investment recommendations

or decisions made in the future will be profitable. Hamilton Point uti-

lizes its best efforts that content provided is compiled or derived from

sources believed to be reliable and accurate, but makes no representa-

tions thereof and accepts no liability for any loss arising from the use

or reliance on the contents herein. Hamilton Point Investment Advi-

sors, LLC (“Hamilton Point”) is a registered investment advisor. For

additional information about Hamilton Point, including fees and ser-

vices, contact us for our Form ADV disclosure statement. For a full

list, free of charge, of all recommendations made by Hamilton Point

for the investment strategy shown during the last year, please contact

us. HP-18-58

39

Hamilton Point Investment Advisors, LLC · 2018-08-01 · Report Hamilton Point Investment...

Documents

Transcript of Hamilton Point Investment Advisors, LLC · 2018-08-01 · Report Hamilton Point Investment...