Rolls-Royce Holdings - 1792 Exchange

Rating Overview

Rolls-Royce Holdings is High Risk.

Rolls-Royce Holdings PLC 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	Medium Risk
Discriminatory Philanthropy	High 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	High 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:

Rolls-Royce received a score of 100 on the 2025 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group. The company recruits employees based on sexual identity issues. The company discriminates against vendors that do not promote divisive sex and gender policies, indicating it prioritizes sexual issues over merit (1)(2). Rolls-Royce integrates ESG into its business practices. From its Global Supplier Code of Conduct: “Suppliers shall set near-term and long-term science-based emissions reductions targets. With…long-term targets set to meet net-zero by no later than 2050.” (3). The company promotes divisive sex and gender policies. Its Global Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (4). However, Rolls-Royce has not canceled customers, suppliers, or vendors based on political views or religious beliefs (5).

Criteria:

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

Risk Level:

High

Rationale:

Rolls-Royce’s HRC 2025 CEI rating indicates the company will not donate to non-religious charities unless they embrace controversial sexual identity policies (1)(2). The company does not discriminate against religious organizations based on views or beliefs (3).

Criteria:

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

Risk Level:

High

Rationale:

Rolls-Royce’s HRC 2025 CEI rating indicates the company forces employees to attend multiple, controversial trainings on gender identity, sexual orientation, transgender issues, and divisive racial ideology. The company provides gender transition guidelines for its employees and a specific benefits guide with a comprehensive explanation of transgender services funded by the company (1)(2). Rolls-Royce appears to prioritize diversity over merit in its recruitment, hiring, leadership composition, and mentorship program. From its 2023 Annual Report: “In 2023, through targeted campaigns to attract more ethnically diverse candidates, we hired 34% ethnically diverse graduates…and 19% ethnically diverse apprentices”. It further states that “The Nominations, Culture & Governance Committee continued to review progress against the strategic pillars of our inclusion strategy: leadership and governance; attract and recruit; engage; and develop.” (3). The company is an affirmative action employer: “Accordingly, it is Rolls Royce’s policy to take affirmative action to employ, advance in employment, and otherwise treat qualified minorities …” (4). Rolls-Royce does not provide viewpoint protections for its employees (5).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Rolls-Royce’s HRC 2025 CEI rating indicates the company agrees to allow a controversial stakeholder group focused on sexual identity issues to dictate marketing or advertising strategy. By doing so, the company risks dividing employees, alienating customers and harming shareholders (1)(2). The company is committed to net zero carbon emissions by 2050 (3). Rolls-Royce supports DEI within its business practices, hosting a D&I Council (4). The company supports DEI within its business practices. From its 2023 Annual Report: “In October, we launched our global self-identification project, ‘count me in’ which aims to increase diversity data disclosure from our global workforce” (5). From its 2021 Strategic Report: “We have continued our response to supporting ethnically diverse employees following the Black Lives Matter (BLM) events in 2020. Following listening sessions with black employees, we are implementing a strategy that has included increased external communications; flying black solidarity flags across multiple sites; leadership intervention from our Executive Team supporting anti-racism events and promoting black role models” (6). Rolls-Royce supports ESG within its business practices. From its 2023 Annual Report: “Our sustainability and ESG strategy is embedded within our global governance framework, enterprise risk management approach and operating model” (7). The company scored a 95 out of 100 on the 2023-2024 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group (8)(9).

Criteria:

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

Risk Level:

High

Rationale:

Rolls-Royce’s HRC 2025 CEI rating indicates the company covers transgender related costs for its employees and their children, including paid short-term leave, puberty blockers, cross-sex hormones, chest surgeries, genital surgeries, medical visits and lab monitoring, travel and lodging. Additionally, the company has pledged philanthropic support of at least one organization or event that promotes sex and gender ideology. By allowing a political stakeholder group to dictate operations, the company increases health care costs and risks dividing employees, alienating customers and harming shareholders (1)(2). Otherwise, Rolls-Royce has not used 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:

High

Rationale:

Rolls-Royce’s HRC 2025 CEI rating indicates the company publicly advocated for controversial sex and gender ideology through local, state or federal legislation or initiatives. By allowing a political stakeholder group to dictate operations, the company risks dividing employees, alienating customers and harming shareholders (1)(2). Rolls-Royce has not used its PAC donations or lobbying for ideological purposes (3)(4)(5).