Narrative

Parnassus Investments invests in high quality ESG companies, and then “engages with portfolio companies on important ESG topics to encourage positive change.”  The 2022 Stewardship Report gives extensive narratives of several recent engagements.   To see them, go to the Parnassus website, https://parnassus.com, then click on ESG, then on “2022 Stewardship Report”.  Beginning on p. 6, you will find about five pages of stories describing Parnassus initiatives to encourage change at the companies they own.  Beyond voting proxies, they have recently begun preparing shareholder resolutions.  They worked on their first two in 2021, and said they expected to ramp this up in 2022.  They apparently did not, but two of the narratives in the 2022 report are as follows.

Parnassus supported a Green Century shareholder proposal calling on Costco to set science-based targets to reduce greenhouse gas emissions.  This was approved by 70% of the shareholders.  They mention that in 2020 Parnassus and Trillium had discussed climate reporting with Costco, after which the company published its first climate action plan.

As a second example, Parnassus asked PPG Industries, a global producer of paints, to establish science-based targets, disclose a plan to achieve these targets, and implement companywide governance for climate-related topics.  PPG performed many of the requests and is now collaborating with Parnassus on other ESG efforts. 

Many other examples describe other ESG efforts beyond combatting climate change.

Funds Offered

Parnassus offers 5 actively managed stock funds (of which one is brand new and therefore has no history), and one fixed income (bond) fund.  These funds are not necessarily completely fossil-free.  They screen out (exclude) companies “that generate more than 10% of revenue from alcohol, tobacco, weapons, gambling, nuclear energy or the extraction, exploration, production or refining of fossil fuels.”  In addition, they avoid companies that are “close to the 10% revenue threshold or that violate the screen’s intent.”

Of the companies that pass this first screening, they highlight key ESG positives and risks.  This evaluation may help identify opportunities for engagement.  Finally, after a company is purchased its ESG criteria are reviewed continually, including both annual and quarterly reports, plus attention whenever relevant news breaks.

The funds are:

• Parnassus Core Equity Fund
• Parnassus Value Equity Fund
• Parnassus Mid Cap Fund
• Parnassus Mid Cap Growth Fund

There is one actively managed bond fund,

• Parnassus Fixed Income Fund

In addition, there is one brand new (Dec. 22, 2022) managed stock fund, with no history yet.

• Parnassus Growth Equity Fund

Fees and Hassles

Withdrawals from an IRA can be made by mail, phone, or online.  However, withdrawals that are charitable donations require the usual medallion signature guarantee.  There is no load charged for withdrawals.