Dimensional Fund Advisors

Rating Overview

Dimensional Fund Advisors is High Risk.

Dimensional Fund Advisors is High Risk. The company yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	High Risk
Discriminatory Philanthropy	No Data
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	Lower Risk
Funding	Lower Risk
Political Actions	No Data

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:

High

Rationale:

In August 2022, Texas placed one or more funds from Dimensional Fund Advisors on its List of Financial Companies that Boycott Energy Companies list. The Comptroller’s office examined publicly available data, including licensed information from Bloomberg, LSEG Workspace, and MSCI, to identify U.S.-based funds that appear to restrict or prohibit investments in energy companies. However, in February 2026, a federal judge in Austin issued a ruling prohibiting enforcement of SB 13, the law that allowed the Texas Comptroller to create and maintain its Financial Companies that Boycott Energy Companies list. The court held that the law infringed upon First and Fourteenth Amendment protections. The plaintiffs argued that SB 13 unlawfully penalized financial firms for engaging in protected speech and investment decisions related to ESG policies, effectively compelling viewpoint-based certifications to do business with the state. The State of Texas, however, contended that SB 13 represented a lawful exercise of its authority to direct state investments and contracting decisions and to protect the state’s energy industry from what it characterized as discriminatory financial practices. In February 2026, the Texas Comptroller’s Office and the Texas Attorney General’s Office appealed the ruling to the Fifth Circuit Court of Appeals. The case remains pending (1)(2)(3)(4)(5). Dimensional Fund Advisors is a signatory of the Principles for Responsible Investment, incorporating ESG issues into investment analysis, decision-making, and other business practices (6)(7). The company integrates ESG into its business practices, tying ESG metrics into its investment decisions (8). However, Dimensional Fund Advisors has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (9).

Criteria:

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

Risk Level:

N/A

Rationale:

Dimensional Fund Advisors does not publish charitable giving guidelines (1).

Criteria:

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

Risk Level:

High

Rationale:

Dimmensional Fund Advisors appears to prioritize diversity over merit in its supply chain. From its Sustainability Guidelines: “Dimensional may consider a board’s diversity when evaluating the effectiveness of a portfolio company’s board
refreshment process. Dimensional may consider whether a portfolio company seeks to follow market best
practices as the portfolio company nominates new directors and assesses the performance of existing directors
who have the diversity of backgrounds, experiences, and skill sets needed to effectively oversee management
and manage risk.
If Dimensional believes that a portfolio company’s board assessment and refreshment process is not sufficiently
rigorous, or if the portfolio company fails to disclose adequate information for Dimensional to assess the rigor of
the process, Dimensional may vote against members of the Nominating Committee or other relevant directors” (1). Dimensional Fund Advisors does not provide viewpoint protections for its employees (2)(3).