ZF Friedrichshafen AG - 1792 Exchange

Rating Overview

ZF Friedrichshafen AG is Medium Risk.

ZF Friedrichshafen AG 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	Medium Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Medium Risk
Political Actions	Lower 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:

ZF integrates ESG into its business practices. From its 2025 Annual Report: “The LTI is applicable to the Board of Management and senior executives. It consists of a financial performance indicator (KPI) and two non-financial ESG performance indicators” (1). The company promotes divisive sex and gender policies. Its Business Partner Code of Conduct requires international vendors to include sexual orientation in their nondiscrimination policy (2). However, ZF has not canceled customers, suppliers, or vendors based on political views or religious beliefs (3).

Criteria:

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

Risk Level:

Medium

Rationale:

ZF’s charitable giving guidelines require that organizations abide by its nondiscrimination policy, including on the basis of sexual preference, thereby excluding some religious charities (1).

Criteria:

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

Risk Level:

High

Rationale:

ZF offers unconscious bias and DEI training to its employees (1). The company appears to prioritize diversity over merit in its business structure through the establishment of gender targets for its recruitment and hiring. From its 2025 Annual Report: “A further 10% of the LTI for the periods 2023 to 2025, 2024 to 2026 and 2025 to 2027 was originally linked to the achievement of our gender diversity targets” (2). ZF operates a supplier diversity program. “One example is the ZF North America Supplier Diversity Program, in which women-divned business enterprises (WBE) are registered. This certification is awarded by the Women Owned initiative. Companies must be at least 51% owned and controlled by women and meet other criteria such as U.S. citizenship and entrepreneurial management. ZF supports the integration of these companies through targeted approaches, participation in industry networks and training opportunities. ZF North America is also looking for various suppliers that are certified according to the standards of the National Minority Supplier Development Council (NMSDC)” (3). The company does not provide viewpoint protections for 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:

ZF supports DEI within its business practices, hosting a Diversity Advocacy Council (DAC) (1). The company supports ESG within its business practices. From its 2024 Annual Report: “As an additional element, regular further training measures on technological and regulatory topics were also carried out in 2024 for all Supervisory Board members, for example on the topics of ESG reporting as well as the consolidation and renewal of ERP systems” (2). ZF supports DEI within its business practices. From its Diversity and Inclusion Web Page: “In July 2020, ZF decided to promote a culture of diversity and inclusion throughout the organization. As a result, the Diversity Advocacy Council (DAC) was created. As an employee led council, this grassroots initiative is expanding to colleagues on a global level, serving as a guide for diversity, equity, inclusion and belonging (DEIB) within ZF” (3). The company scored a 30 out of 100 on the 2025 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group (4)(5). ZF scored a 30 out of 100 on the 2023-2024 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group (6)(7). The company is a member of the German Diversity Charter which has a goal of keeping “staff informed about the value of diversity and [involving] them in implementing the Charter” (8)(9).

Criteria:

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

Risk Level:

Medium

Rationale:

ZF was a Brass Sponsor of Out & Equal (1). Otherwise, there are no publicly known cases of the company using corporate funds to advance ideological causes, organizations, or policies (2).

Criteria:

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

Risk Level:

Lower

Rationale:

ZF has not used its PAC donations or lobbying for ideological purposes (1)(2)(3).