Pennymac - 1792 Exchange

Rating Overview

Pennymac is Medium Risk.

Pennymac 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	Medium 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:

Pennymac integrates ESG into its business practices. From its 2021 ESG Report: “it is imperative to meaningfully integrate our corporate sustainability and ESG agenda into every aspect of our business” (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:

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

Criteria:

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

Risk Level:

High

Rationale:

Pennymac requires its full time employees to take “Diversity in the Workplace” training (1). The company appears to prioritize diversity over merit in its supply chain. From its 2023 sustainability report: “vendor diversity is an integral component of advancing diversity, equity, and inclusion and that it can be advantageous on many levels” (2).The company appears to prioritize diversity over merit as an employer. From its jobs page: “We embed diversity, equity, and inclusion across all aspects of the employee lifecycle and experience, whether it is the attraction, recruitment, onboarding, retention, development or separation of employees” (3). Pennymac 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:

Medium

Rationale:

Pennymac supports DEI within its business practices, employing a DEI Council (1). Otherwise, there are no publicly known cases of Pennymac using its reputation to advance ideological causes or policies (2).

Criteria:

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

Risk Level:

High

Rationale:

Pennymac donated $2.5 million to various organizations, including the National Urban League, Earth Justice, and the Trevor Project (1). In 2023, Pennymac ” hosted a virtual runPennymac: Pride 5K Challenge, which enabled employees across our national footprint to show their pride, stay active and support charitable organizations” (2). Otherwise, there are no publicly known cases of Pennymac using corporate funds to advance ideological causes, organizations, or policies (3).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

N/A

Rationale:

Pennymac does not operate a PAC or report on its lobbying at this time (1)(2)(3).