Narrative

Parnassus Investments invests in high quality ESG companies, and then “engages with portfolio companies on important ESG topics to encourage positive change.”  The annual Stewardship Reports give extensive narratives of engagements.   To see the most recent one, go to the Parnassus website, https://parnassus.com, then in the picture below click on “2025 Sustainability & Stewardship Report”. 

In earlier annual reports Parnassus describes supporting 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 another 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. 

As stated in the 2025 report, Parnassus has set a goal of achieving net zero carbon emissions across all their funds by 2050.  Therefore they encourage their portfolio companies to set and publish climate transition plans, guided by the Science Based Targets initiative (SBTi).  For example, in 2023 Parnassus engaged a global semiconductor company, AMD, on science-based targets, supplier engagement and water-risk management practices in its supply chain.  The company's targets have since been approved by SBTi. and the climate transition plan was published in 2025.  As a second example, in 2021 FedEx announced  the ambitious goal to achieve carbon-neutral global operations by 2040.  Since 2022 Parnassus has been making appropriate requests, following and encouraging the company's progress on these goals.

Funds Offered

Parnassus offers 6 stock mutual funds and 2 ETFs.  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.

Fees and Hassles

IRAs can contain mutual funds, but not ETFs at present.  Withdrawals from an IRA can be made by mail, phone, or online.  However, withdrawals that are charitable donations over $10K require the usual medallion signature guarantee.  There is no load charged for purchases or withdrawals.