Parnassus Investments - 1792 Exchange

Rating Overview

Parnassus Investments is High Risk.

Parnassus Investments is High Risk. The company 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 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	Lower Risk
Employment Protection	Medium 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:

High

Rationale:

Parnassus Investments integrates ESG into its business practices, “The Parnassus strategies evaluate ESG factors as part of the investment decision-making process, considering a range of impacts they may have on future revenues, expenses, assets, liabilities and overall risk.” (1). The company, “…restricts investment in companies that we believe are operating their businesses contrary to Parnassus’s Principles or have consistently been plagued by severe ESG controversies.” (2). Parnassus Investments will not invest in, “companies that are materially involved in certain activities, including but not limited to: Companies that explore for, extract, produce or refine fossil fuels. We may have exposure to companies that provide ancillary products and services to the energy sector, and companies that use fossil fuel–based energy, provided that they meet our investment standards.” (3).

Criteria:

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

Risk Level:

Lower

Rationale:

Parnassus Investments does not appear to discriminate against charitable organizations based on views or beliefs (1)(2)(3).

Criteria:

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

Risk Level:

Medium

Rationale:

Parnassus Investments does not publish a nondiscrimination policy (1).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Parnassus Investments integrates ESG into its business practices, “Parnassus Investments integrates responsible investment research into its process to: Avoid material ESG risks that we believe can harm corporate financial performance over time;” (1). The company stated, “We encourage companies to integrate ESG considerations into their businesses so they can better manage and mitigate salient ESG risks, build more resilient and sustainable businesses and identify long-term opportunities for leadership and innovation. We believe that strong ESG practices and performance can be signs of a high-quality management team and long-term strategic orientation. We also believe it is the right thing to do” (2). The company supports DEI within its business practices, “In 2023, Parnassus added several new benefits, including the addition of two floating holidays to support diversity, equity, inclusion and belonging initiatives;” (3).

Criteria:

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

Risk Level:

Lower

Rationale:

Parnassus Investments 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:

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