EnerSys - 1792 Exchange

Rating Overview

EnerSys is Medium Risk.

EnerSys 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. EnerSys 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:

EnerSys integrates ESG into its business practices, tying executive compensation to “sustainability-related performance” (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:

EnerSys 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:

EnerSys offers a training course on Discrimination, Diversity and Harassment to its employees (1). The company operates a supplier diversity program. “Since 2021, EnerSys has attributed over $730M to small and diverse businesses through our Supplier Diversity Program (U.S.)” (2). The company protects its employees against viewpoint discrimination (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:

EnerSys’s former CEO Dave Shaffer signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace, strategize on DEI programs/initiatives with other signatories, and engage boards of directors when developing and evaluating DEI strategies (1)(2). The company is aligned with the Paris Agreement, which entails a commitment to net zero carbon emissions by 2050 (3). The company supports DEI within its business practices, employing a Global DEI & Charitable Giving Manager (4). The company supports ESG within its business practices. From its 2023 Sustainability Report: “Our sustainability policies underscore our unwavering dedication to excellence in managing environmental, social and governance (ESG) issues, encompassing not only our internal operations but also extending throughout our supply chain” (5).

Criteria:

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

Risk Level:

Lower

Rationale:

EnerSys 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:

EnerSys’s PAC has been defunct since 2010 (1)(2). Otherwise, the company has not used its lobbying for ideological purposes (3).