Krystal Biotech - 1792 Exchange

Rating Overview

Krystal Biotech is Medium Risk.

Krystal Biotech is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. Krystal Biotech 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:

Krystal Biotech integrates ESG into its business practices. From its 2024 Proxy Statement: “ESG oversight is exercised both at the Board of Directors level and through our executive leadership. The Nominating and Corporate Governance Committee of our Board of Directors has oversight responsibility regarding our ESG strategy and policies and is briefed by management on matters related to ESG” (1). The company has not publicly 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:

Krystal Biotech 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:

Krystal Biotech offers unconscious bias and DEI training to its employees (1). The company appears to prioritize diversity over merit in its leadership composition. From its Corporate Governance Guidelines: “Accordingly, the Nominating and Corporate Governance Committee will consider the diversity of a director candidate based on broader principles such as diversity of perspective, experience and expertise, as well as those factors commonly associated with diversity such as diversity of gender, ethnicity, race, national origin, and any other such factors under applicable Nasdaq requirements” (2). Krystal Biotech is an affirmative action employer. “Krystal Biotech, Inc. is an Equal Employment Opportunity and Affirmative Action Employers” (3). The company does not provide viewpoint protections for its employees (4).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Krystal Biotech supports DEI within its business practices, hosting a DEI council (1). The company supports DEI within its business practices. From its 2024 Proxy Statement: “Our commitment to DEI is an ongoing journey, and we recognize there is always more to do. We continuously look for new ways to foster an inclusive and diverse culture to maintain the strongest possible team” (2). Krystal Biotech also supports ESG within its business practices. From its 2024 Proxy Statement: “We continue to advance our environmental, social and governance (“ESG”) practices” (3).

Criteria:

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

Risk Level:

Lower

Rationale:

Krystal Biotech 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:

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