APA Corporation - 1792 Exchange

Rating Overview

APA Corporation is Medium Risk.

APA Corporation is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

APA promotes divisive sex and gender policies. Its Global Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (1). APA Corporation integrates ESG into its business practices. Its “Board of Directors is actively involved in ESG issues” and they “engage directly with ESG-focused shareholders to gain external perspectives on key ESG issues” (2). However, the company has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (3).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

APA Corporation does not discriminate against charitable organizations based on views or beliefs. Its charitable giving focus areas are “sustainable communities, environmental stewardship, and access to energy” (1)(2)(3).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

APA Corporation requires its leaders to take D&I training (1). The company offers D&I training to its employees (2). APA Corporation operates a supplier diversity program. “We recently established a supplier diversity program in the U.S. and tied the success of this program to short-term incentive compensation in 2022” (3). The company is an affirmative action employer. “Overall responsibility for the implementation of this policy and the affirmative action plans and programs is delegated to the Equal Employment Coordinator” (4). However, the company does not provide viewpoint protections for its employees (5).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

APA Corporation supports DEI within its business practices. From its 2024 Sustainability Report: “The full board regularly reviews company actions and seeks external perspectives on a range of sustainability issues, including environmental, health and safety (EHS) performance; climate-related risks and opportunities, greenhouse gas (GHG) emissions and water usage; human capital
management and succession planning; diversity and
inclusion (D&I); and cybersecurity” (1). The company supports ESG within its business practices. From its 2024 Sustainability Report: “Our board and senior management are directly engaged in
assessing and managing risks, opportunities and performance on a wide range of ESG topics, including climate changerelated risks and opportunities” (2).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

APA Corporation has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

APA Corporation has not used its PAC donations for ideological purposes and does not report on its lobbying at this time (1)(2)(3).