Dragonfly Energy - 1792 Exchange

Rating Overview

Dragonfly Energy is Medium Risk.

Dragonfly Energy Holdings, Inc. 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	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:

Medium

Rationale:

Dragonfly Energy integrates ESG into its business practices. From its 2023 & 2024 ESG Fact Sheet: The company’s ESG materiality matrix “serves a (sic) tool in guiding the company’s sustainability strategy and decision-making processes” (1). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

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

Risk Level:

Lower

Rationale:

Dragonfly Energy does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

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

Risk Level:

High

Rationale:

Dragonfly Energy appears to prioritize diversity over merit in its hiring. From its Code of Conduct: the company “promote(s) diversity in hiring and other employment decisions” (1). The company appears to prioritize diversity over merit in its leadership composition. From its 2024 Proxy Statement: “We also view it as imperative to have a Board that represents diversity of ethnicity, gender, sexual orientation, cultural background and professional experience” (2). The company does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Dragonfly Energy supports ESG within its business practices. From its 2023 & 2024 ESG Fact Sheet: “Our Board of Directors has demonstrated a steadfast commitment to Environmental, Social, and Governance (ESG) principles, recognizing their critical importance in shaping the company’s long-term sustainability and success” (1). The company supports DEI within its business practices. From its 2023 Form 10-K: “Our culture has benefitted from the diversity of our workforce from the very beginning. Inclusion and equity are “baked into the bricks” of our values, which our employees demonstrate every day” (2).

Criteria:

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

Risk Level:

Lower

Rationale:

Dragonfly Energy 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:

N/A

Rationale:

Dragonfly Energy does not operate a PAC or engage in lobbying at this time (1)(2)(3).