Inherent Group LP - 1792 Exchange

Rating Overview

Inherent Group LP is Medium Risk.

Inherent Group LP 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	High 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:

Inherent Group LP integrates ESG into its business practices. From its ESG Policy: “Inherent integrates environmental, social, and governance (ESG) considerations into our investment process for selected positions, using ESG where relevant as a tool to enhance the sourcing of investment ideas, the underwriting of risk-reward, and the efficacy of our engagement with a subset of our portfolio companies” (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:

Inherent Group LP does not discriminate against charitable organizations based on views or beliefs. The company’s charitable giving focus areas are “Workforce development, Mental health, and Climate action” (1).

Criteria:

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

Risk Level:

High

Rationale:

Inherent Group LP appears to prioritize diversity over merit in its recruitment and hiring. From its ESG Policy: The company “Seek[s] diverse backgrounds and perspectives in our hiring and research processes” (1). The company does not publish a nondiscrimination policy (2).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Inherent Group LP is a Ceres Network Member, committed to carbon neutrality by 2040 (1)(2)(3). The company is part of the Net Zero Asset Managers initiative, committed to carbon neutrality with its investments by 2050 (4)(5)(6). Inherent Group LP is aligned with the Paris Agreement, which entails a commitment to net zero carbon emissions by 2050 (7). The company is committed to net zero carbon emissions by 2040 (8). Inherent Group LP supports ESG within its business practices. From its ESG Policy: “Inherent Group (“we”, “Inherent”, or the “firm”) believes that businesses are uniquely positioned to address environmental and social challenges through product innovation, operational excellence, and sustainability advocacy. Furthermore, we believe that businesses that incorporate material sustainability factors into their strategy, operations, and culture will outperform over the long-term” (9). The company supports DEI within its business practices. From its ESG Policy: “Because we believe that valuing diversity will lead to better investment and business outcomes, we strive to build a culture of cognitive and cultural diversity that embraces difference and fosters inclusion” (10).

Criteria:

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

Risk Level:

High

Rationale:

In 2018, Inherent Group LP donated $25,000 to B Lab (1). In 2019, the company donated $25,000 to B Lab (2). In 2020, Inherent Group LP donated $25,000 to B Lab (3). In 2020, the company donated $250,000 to Ceres Inc. (4). In 2021, Inherent Group LP donated $150,000 to As You Sow (5). In 2021, the company donated $25,000 to B Lab (6). In 2022, Inherent Group LP donated $175,000 to As You Sow (7). In 2022, the company donated $75,000 to Ceres Inc. (8). Otherwise, there are no publicly known cases of Inherent Group LP using corporate funds to advance ideological causes, organizations, or policies (9).