Parnassus Investments applies exclusionary screens to the entire investment universe. The Parnassus exclusionary screens apply to all securities in the Fixed Income portfolio, including corporate, SSA and asset-backed securities. The purpose of the exclusionary screens is to avoid investment in companies and agencies that derive significant revenue from the following activities:
- Manufacture alcohol or tobacco products
- Direct involvement with gambling
- Manufacture of weapons
- Generation of electricity from nuclear power
- Business involvement with Sudan
U.S. Treasuries are available for inclusion in the Parnassus Fixed Income Portfolio as they do not violate the firm's policy on exclusionary screens.
Regarding corporate bonds, Parnassus Investments also seeks to invest in companies with positive performance on ESG factors that include:
- Corporate governance and business ethics
- Employee benefits and corporate culture
- Stakeholder relations
- Product, customers and supply chain
- Environmental impact
Regarding SSA-related organizations, Parnassus Investments considers environmental and social factors on a case-by-case basis.