Summary
Berkshire Hathaway Inc. is the world's most famous conglomerate — insurance, railroads, energy, manufacturing, and retail. Warren Buffett has publicly stated he will not engage with ESG frameworks.
Despite this, BRK-B appears in ESG-adjacent indices and is one of the most widely held stocks globally.
Our methodology scores Berkshire Hathaway based on the public record of its subsidiaries' actions.
| Value | Score | Grade |
|---|---|---|
| Planet-Friendly Business | -90 | Climate Offender |
| Fair Money & Economic Opportunity | -70 | Wealth-Hoarder |
| Better Health for All | -60 | Wellness Hinderer |
Planet-Friendly Business: -90
Berkshire Hathaway has accumulated 255 environment-related offenses since 2000, with over $235 million in penalties — averaging more than 10 violations per year.
The company's coal-fired power plants are estimated to cause up to 260 premature deaths annually and $3.9 billion in healthcare costs in the Omaha metro area, where the North Omaha asthma rate is nearly 13%.
Berkshire Hathaway's coal fleet emits more nitrogen oxides (NOx) than any other in the US. The company has filed lawsuits to avoid installing pollution control scrubbers.
The company does not meet any criteria for long-term, medium-term, or short-term greenhouse gas reduction targets. No validated science-based targets exist. No interim milestones are defined.
There is no alignment with TCFD climate-related disclosures and no climate scenario analysis. No disclosure of climate-related stranded asset risks.
22% of the company's power generation comes from coal, with a plan to exit coal by 2049 — over two decades from now.
While Berkshire has invested $41 billion in renewable energy, it simultaneously lobbies against stricter air quality requirements and resists providing detailed emissions reports.
Fair Money & Economic Opportunity: -70
Trident Mortgage Co., a Berkshire Hathaway subsidiary, settled with the US Department of Justice and the Consumer Financial Protection Bureau for $24.4 million in 2022 — including a $4 million civil fine — for intentional racial discrimination (redlining) against Black and Hispanic families from 2015 to 2019.
Trident avoided writing mortgages and discouraged applications in majority-minority neighbourhoods in Philadelphia, Camden, and Wilmington.
Clayton Homes, another Berkshire subsidiary, made 31% of its mobile home loans to minorities in 2014 while using targeted marketing. In a recent four-year period, 93% of Clayton's mobile home loans were considered "higher-priced" under federal rules.
Vanderbilt Mortgage, a Clayton subsidiary, charged minority borrowers over 0.7 percentage points higher annual rates than white counterparts. Loans often included inflated fees and Clayton-brokered insurance.
Clayton's practices often trapped borrowers in high-interest loans and rapidly depreciating homes — leading to repossessions or bankruptcies. Loan documents were described as dense legal jargon, often in English only without translation for customers with limited English proficiency. Customers were rushed through the closing process.
Better Health for All: -60
Berkshire's coal plants are estimated to cause up to 260 premature deaths and $3.9 billion in healthcare expenses annually nationwide.
Diesel pollution from BNSF Railway operations contributes to increased cancer risk, premature death, and various diseases.
The company has 3,072 safety-related offenses and $795 million in penalties since 2000 — including $727 million for utility safety violations.
BNSF Railway is not providing information on pollutants. Berkshire has lobbied against stricter air quality requirements and filed lawsuits to avoid installing pollution controls.
Why This Matters
Berkshire Hathaway is in virtually every large-cap fund. Many investors hold BRK-B without knowing their portfolio includes:
- A coal fleet responsible for an estimated 260 deaths per year
- A mortgage subsidiary that paid $24.4 million for racially discriminating against homebuyers
- 255 environmental violations and $235 million in fines
These are not allegations. These are settlements, court filings, and regulatory records.
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