Robinhood

Robinhood is a financial services company that offers commission-free stock trading and investing, aiming to democratize finance for all. It provides advanced trading tools, fractional shares, and real-time market data.

Positive signals

Robinhood has completed an annual greenhouse gas inventory since 2019, following the Greenhouse Gas Protocol to track and manage its carbon emissions.

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Robinhood’s ESG reporting framework is aligned with the Greenhouse Gas Protocol, a globally recognized standard for emissions accounting and reporting.

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Robinhood’s 2023 carbon footprint included 393 metric tonnes of Scope 1 emissions and 1,634 metric tonnes of Scope 2 emissions, with detailed breakdowns provided in its ESG reporting.

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Robinhood achieved 100% offset of its Scope 2 emissions in 2023, removing a total of 1,634 metric tonnes of carbon from the atmosphere through verified carbon removal projects.

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Robinhood has implemented energy efficiency strategies at its offices, including LED and motion-sensored lighting, to reduce energy consumption and associated emissions.

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Concerns

Robinhood’s board and executive management have been criticized for lack of diversity, with limited representation of women and minorities in senior leadership roles as of 2022.

MEDIUM

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Robinhood has faced criticism for insufficient customer support and communication, particularly during trading outages, which has led to reputational damage and regulatory attention.

MEDIUM

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Robinhood has faced multiple regulatory investigations and enforcement actions by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) related to misleading customers and operational failures, resulting in fines exceeding $70 million in 2021.

CRITICAL

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Robinhood's business model and order flow practices have been criticized for potential conflicts of interest, particularly regarding payment for order flow, raising governance and transparency concerns among regulators and investors.

HIGH

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Robinhood has been the subject of class-action lawsuits and regulatory scrutiny for outages and trading restrictions during periods of market volatility, notably during the GameStop trading frenzy in early 2021.

HIGH

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Robinhood

Positive signals

Robinhood has completed an annual greenhouse gas inventory since 2019, following the Greenhouse Gas Protocol to track and manage its carbon emissions.

Robinhood’s ESG reporting framework is aligned with the Greenhouse Gas Protocol, a globally recognized standard for emissions accounting and reporting.

Robinhood’s 2023 carbon footprint included 393 metric tonnes of Scope 1 emissions and 1,634 metric tonnes of Scope 2 emissions, with detailed breakdowns provided in its ESG reporting.

Robinhood achieved 100% offset of its Scope 2 emissions in 2023, removing a total of 1,634 metric tonnes of carbon from the atmosphere through verified carbon removal projects.

Robinhood has implemented energy efficiency strategies at its offices, including LED and motion-sensored lighting, to reduce energy consumption and associated emissions.

Concerns

Robinhood’s board and executive management have been criticized for lack of diversity, with limited representation of women and minorities in senior leadership roles as of 2022.

Robinhood has faced criticism for insufficient customer support and communication, particularly during trading outages, which has led to reputational damage and regulatory attention.

Robinhood has faced multiple regulatory investigations and enforcement actions by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) related to misleading customers and operational failures, resulting in fines exceeding $70 million in 2021.

Robinhood's business model and order flow practices have been criticized for potential conflicts of interest, particularly regarding payment for order flow, raising governance and transparency concerns among regulators and investors.

Robinhood has been the subject of class-action lawsuits and regulatory scrutiny for outages and trading restrictions during periods of market volatility, notably during the GameStop trading frenzy in early 2021.

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