Sustainability & Stewardship 2024 Report from Parnassus

Parnassus Investments, a pioneer in sustainable investing, is pleased to share our Annual Sustainability & Stewardship Report. This report highlights the accomplishments and progress of our sustainability and stewardship activities this past year.

At Parnassus, we aim to help our clients accomplish their goals with investments that create enduring value. Toward that end, we used our engagements and proxy voting to drive improvements in business outcomes and disclosures on a range of issues, including climate change, environmental justice, sustainable workplaces and the responsible use of artificial intelligence.

Our most meaningful efforts this year came through our thematic engagement program, working with portfolio companies that represent more than half of our assets under management as of June 30, 2024. We approach all of our engagements with a focus on creating long-term value and were able to record significant accomplishments and progress over the reporting period. It often takes several months—or even years—to collaborate with companies to address opportunities for improvement. We approach every engagement with the goal of constructively collaborating with the company and with a focus on long-term value creation.

 Highlights from the Report Include:

• An overview of our engagements with 57 companies across such themes as climate risks, responsible AI, sustainable workplaces, environmental justice and corporate governance
• A summary of our proxy voting, with 1,833 proposals voted and 22% votes against management and shareholder proposals at Becton Dickinson, Union Pacific and Verisk Analytics
• Case studies on Intuit, Salesforce, Brookfield Renewable, Xylem and Agilent
• Portfolio data on greenhouse-gas emissions, emissions-reduction targets and governance quality for each of our equity strategies

Additional information is available on the Parnassus website. 

About Parnassus Investments 

Parnassus Investments is a research-driven investment boutique founded in 1984 on the belief that a well-managed responsible investment strategy could outperform traditional approaches. It offers a focused set of six highly active U.S. equity and fixed income funds. 

Its investment team carefully selects a small number of companies for its portfolios, investing in high-quality businesses they believe have increasingly relevant products or services, durable competitive advantages, strong management teams and sustainable business practices. Headquartered in San Francisco, Parnassus has 77 employees and $46.5 billion assets under management as of June 30, 2024. 

For the current holdings of the Parnassus Core Equity Fund, the Parnassus Growth Equity Fund, the Parnassus Value Equity Fund, the Parnassus Mid Cap Fund, the Parnassus Mid Cap Growth Fund and the Parnassus Fixed Income Fund, please visit each fund’s individual holdings page. Fund holdings are subject to change at any time. 

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) GUIDELINES: The Fund evaluates 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. The Fund also utilizes active ownership to encourage more sustainable business policies and practices and greater ESG transparency. Active ownership strategies include proxy voting, dialogue with company management and sponsorship of shareholder resolutions, and public policy advocacy. There is no guarantee that the ESG strategy will be successful. There are no assurances the Funds will meet their investment objectives and or that their ESG strategies will be successful.

 Mutual fund investing involves risk, and loss of principal is possible. 

© 2024 Parnassus Investments, LLC. PARNASSUS, PARNASSUS INVESTMENTS and PARNASSUS FUNDS are federally registered trademarks of Parnassus Investments, LLC.

 The Parnassus Funds are distributed by Parnassus Funds Distributor, LLC.

 Before investing, an investor should carefully consider the investment objectives, risks, charges and expenses of a fund and should carefully read the prospectus or summary prospectus, which contain this and other information. The prospectus or summary prospectus can be found on the website, www.parnassus.com , or by calling (800) 999-3505.