MASHINIi

Berkshire Hathaway Inc.

BRK-B.US | Activities of holding companies

Berkshire Hathaway Inc. is a multinational conglomerate holding company. It owns a diverse range of businesses, including insurance (GEICO, General Re), railroads (BNSF Railway), energy (Berkshire Hathaway Energy), manufacturing (Precision Castparts, Marmon Holdings), retail (See's Candies, Dairy Qu...Show More

Ethical Profile

Mixed.

Berkshire Hathaway's ethical profile is mixed. Trident Mortgage Co. settled with the DOJ for alleged redlining, requiring a $20 million investment in minority-majority neighborhoods. HomeServices of America settled lawsuits for $250 million related to allegedly inflated home selling costs. Subsidiaries have faced accusations of discriminatory hiring, union-busting, and firing workers for demanding PPE. Senator Bernie Sanders criticized Warren Buffett over a strike at a Berkshire unit. On the environmental front, Berkshire Hathaway Energy has invested $34.1 billion in renewables, yet continues to operate coal plants, some until 2049, and BNSF Railway faces $600 million in asbestos cleanup costs. While some subsidiaries are involved in defense manufacturing, the company reports no direct arms revenue and has divested 90% of defense-related assets, allocating 4% of revenue to peace education.

Value Scores

Better Health for All-60
-100100
Fair Money & Economic Opportunity-70
-100100
Fair Pay & Worker Respect50
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-20
-100100
Kind to Animals-20
-100100
No War, No Weapons-30
-100100
Planet-Friendly Business-90
-100100
Respect for Cultures & Communities50
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-60

Berkshire Hathaway's energy and railway subsidiaries cause severe, widespread health damage. Its coal-fired power plants are estimated to cause up to 260 premature deaths and $3.9 billion in healthcare expenses annually nationwide

1
, and diesel pollution from BNSF Railway's operations contributes to increased cancer risk, premature death, and various diseases
2
. 22% of the company's power generation comes from coal
3
, with a plan to exit coal by 2049
4
. The company has a poor safety record, with 3,072 safety-related offenses
5
and $795 million in penalties since 2000
6
, including $727 million for utility safety violations
7
. Berkshire Hathaway has resisted providing detailed reports on its emissions
8
, lobbied against stricter air quality requirements
9
, and BNSF Railway is not providing information on pollutants
10
. Its coal fleet emits more nitrogen oxides (NOx) than any other in the U.S.
11
, and it has filed lawsuits to avoid installing pollution control scrubbers
12
. While Berkshire has invested $41 billion in renewable energies
13
, holds a stake in DaVita Inc. for kidney care
14
, its MedPro Group provides medical malpractice insurance
15
, and Berkshire Hathaway Homestate Companies improved care for nearly 1,200 injured workers in California in 2022
16
, these positive contributions are limited compared to the scale of negative health impacts.

Fair Money & Economic Opportunity

-70

Clayton Homes made 31% of its mobile home loans to minorities in 2014 and used targeted marketing to attract minority borrowers.

1
Clayton loans averaged 7 percentage points higher than typical home loans in 2013, and Vanderbilt Mortgage, a Clayton subsidiary, charged minority borrowers over 0.7 percentage points higher annual rates than white counterparts.
2
Loans often included inflated fees and Clayton-brokered insurance.
3
In a recent four-year period, 93% of Clayton's mobile home loans were considered "higher-priced" under federal rules.
4
Trident Mortgage Co., a Berkshire Hathaway subsidiary, settled with the U.S. Department of Justice and the Consumer Financial Protection Bureau for $24.4 million in 2022, including a $4 million civil fine, for intentional discrimination (redlining) against Black and Hispanic families from 2015 to 2019.
5
Clayton Homes incurred $38,200 in fines and $704,678 in customer refunds during 2022-2024.
6
The CFPB lawsuit against Vanderbilt Mortgage & Finance was dismissed in February 2025.
7
Clayton's practices often trapped borrowers in high-interest loans and rapidly depreciating homes, hindering wealth building for minority communities, leading to repossessions or bankruptcies.
8
Trident Mortgage Co. engaged in redlining from 2015 to 2019, avoiding writing mortgages and discouraging applications in majority-minority neighborhoods in Philadelphia, Camden, and Wilmington.
9
Clayton Homes' loan documents were described as dense legal jargon and complex, often in English without translation for customers with limited English proficiency, and customers were rushed through the closing process, making terms difficult to understand.
10

Fair Pay & Worker Respect

50

Berkshire Hathaway's CEO-to-median employee pay ratio is 4:1.

1
However, several subsidiaries have faced issues related to fair labor practices and discrimination. In May 2023, the EEOC charged LeachGarner Inc. with sexual bias for allegedly assigning female manufacturing employees to lower-paying jobs, violating Title VII of the Civil Rights Act of 1964 and the Equal Pay Act.
2
In April 2023, NetJets pilots union filed a lawsuit against NetJets, a subsidiary, alleging interference with communications about contract negotiations.
3
The Federal Railroad Administration is considering civil penalties against BNSF Railway, a subsidiary, following identified non-compliance with regulations in August 2024.
4
In July 2022, Trident Mortgage Co., a subsidiary, was fined $20 million for discriminatory lending practices.
5
Shareholders rejected proposals in May 2025 requiring reports on risks from race-based initiatives and the impact of business practices on employees,
6
and the company omitted diversity and inclusion mentions from its annual report in February 2025.
7

Fair Trade & Ethical Sourcing

0

No specific, quantifiable data is available across the provided articles for Berkshire Hathaway Inc. regarding fair trade certifications, supplier audit frequency, the number of substantiated forced or child labor incidents, supply chain traceability coverage, remediation speed for violations, ethical clause coverage in supplier contracts, share of spend on high-risk materials, or supplier diversity spend. While some subsidiaries like BHE Canada and Benjamin Moore report zero forced/child labor incidents

1
,
2
and Benjamin Moore conducts supplier audits,
3
this information is not provided for Berkshire Hathaway Inc. as a whole. Berkshire Hathaway's conflict minerals reports acknowledge the presence of 3TG minerals
4
and detail due diligence efforts
5
,
6
but do not provide a percentage of spend on these materials or conclusive traceability data.
7
,
8
Although Berkshire Hathaway incurred penalties for child labor violations between 2017-2023,
9
the articles do not specify the number of substantiated incidents for the company, preventing a score for that KPI.

Honest & Fair Business

-20

The company's subsidiary, HomeServices of America, settled lawsuits for $250 million in April 2024 related to antitrust violations concerning real estate commission structures.

1
Berkshire Hathaway received an S&P Global CSA Score of 10 and an ESG Score of 13 in November 2025.
2
The company has a comprehensive "Prohibited Business Practices Policy," revised in December 2023, which mandates strict compliance with anti-corruption laws, including the FCPA.
3
This policy requires annual risk assessments, regular training for employees and high-risk intermediaries, due diligence, and evaluation of program effectiveness across global operations.
4
Furthermore, a formal whistleblower policy is in place, circulated annually, offering internal and external anonymous reporting channels via NAVEX Global, and explicitly prohibiting retaliation.
5
Reports are subject to fair, independent, and timely investigation.
6

Kind to Animals

-20

Berkshire Hathaway's 27% owned subsidiary, Kraft Heinz, sourced 67% of its eggs and egg products globally from cage-free or better systems in 2022

1
, with 100% of eggs purchased in Europe being free-range as of 2021
2
. For animal agriculture, Kraft Heinz requires suppliers to adhere to the Five Freedoms and maintain a zero-tolerance policy for animal abuse
3
. U.S. dairy suppliers must follow FARM Animal Care guidelines, and Canadian dairy suppliers follow the National Farm Animal Care Council’s Code of Practice, both of which prohibit routine tail docking
4
. Kraft Heinz has committed to improving broiler chicken welfare in its U.S. supply chain by 2024
5
and in Europe by 2026
6
, including specific standards for stocking density, lighting, perch space, pecking substrates, and stunning methods
7
. Primal Kitchen, a Kraft Heinz brand, uses 100% ASPCA certified humane and cage-free eggs
8
. Supplier self-assessments in 2022 indicated 100% of turkey and beef cattle respondents, and 94% of pig respondents, were pre-slaughter stunned
9
. Regarding animal testing, Kraft Heinz prohibits animal use for research not essential to food safety and quality, and does not maintain its own testing facilities
10
. Legally required ingredient safety testing is completed by accredited third-party facilities following animal welfare guidelines
11
, and the company supports the three R’s of animal research: replace, reduce, and refine
12
.

No War, No Weapons

-30

Berkshire Hathaway maintains a policy of not doing business with or in sanctioned countries and regions, including Cuba, Iran, North Korea, Syria, certain occupied regions of Ukraine, Venezuela, and Russia, requiring strict compliance with all applicable economic and trade sanctions.

1
This also constitutes a formal policy of non-engagement with these conflict-linked regimes. For human rights, subsidiaries are required to update due diligence for high-risk intermediaries at least every two years.
2

Planet-Friendly Business

-90

Berkshire Hathaway has accumulated 255 environment-related offenses since 2000, incurring over $235 million in penalties

1
, which averages to more than 10 violations per year. The company's coal-fired power plants are estimated to cause up to 260 premature deaths
2
and $3.9 billion in healthcare costs annually in the Omaha metro area
3
, where the North Omaha asthma rate is nearly 13%
4
, with no mentioned programs addressing these disproportionate climate impacts on vulnerable communities. Berkshire Hathaway does not meet any criteria for long-term, medium-term, or short-term greenhouse gas (GHG) reduction targets
5
, indicating an absence of validated science-based targets. The company is working towards a net-zero GHG emissions target by 2050
6
, but no interim milestones are defined or met. Furthermore, Berkshire Hathaway shows no alignment with climate-related disclosures, including TCFD alignment and climate scenario analysis
7
. There is no disclosure of climate-related stranded asset risks or strategy
8
, and no programs supporting workers and communities transitioning from high-carbon to low-carbon economies are mentioned.

Respect for Cultures & Communities

50

Berkshire Hathaway's subsidiary, PacifiCorp, was involved in the Klamath agreement with dozens of parties, including the Yurok, Karuk, and Klamath tribes

1
. The company has a grievance mechanism accessible to all external individuals and communities to raise human rights complaints or concerns
2
. For language inclusivity, the Berkshire Q&A Session is webcast in both English and Mandarin
3
.

Safe & Smart Tech

0

A data breach occurred at NetJets, a Berkshire Hathaway subsidiary, in April 2025

1
, where a hacker stole client data via a phishing attack
2
. The scale of the breach was described as "limited" and affecting "some clients."
3
Following alleged prior breaches, Berkshire Hathaway hired a Chief Information Security Officer (CISO) whose responsibilities include vulnerability management, penetration testing, and regulatory compliance.
4
The company operates with a decentralized cybersecurity risk management framework, requiring annual reporting and coordination for significant events.
5
Berkshire Hathaway maintains a cautious "wait and see" approach to AI integration, despite recognizing its potential.
6
A shareholder proposal to establish an AI oversight committee was rejected
7
, and Warren Buffett has expressed concerns about AI's potential for scams.
8

Zero Waste & Sustainable Products

0

Shaw Industries, a subsidiary, has nearly 90% of its products Cradle to Cradle Certified®, demonstrating strong integration of circular design principles and high product recyclability.

1
Fruit of the Loom, another subsidiary, utilizes cartons made from 100% recycled fibers for its packaging.
2
Fruit of the Loom also aims to maintain zero waste in its owned facilities.
3
Across various subsidiaries, numerous waste reduction initiatives are implemented, including Johns Manville's thermal recycling unit for waste glass fibers, BNSF's recycling of 2.8 million railroad ties, 1.2 million pounds of batteries, and 2.6 million gallons of lube oil in 2022, and Clayton's robust recycling program.
4
The company has not incurred any waste disposal violations in the past three years.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.