Investors address online child exploitation

Praxis co-files proposal at Apple

Equity investing | November 20, 2023

In partnership with investor colleagues, Praxis Mutual Funds^® has co-filed a proposal at Apple to address online child exploitation. The resolution requests that Apple publish a report assessing risks of its products and services being used to facilitate online sexual exploitation of children, including metrics on the effectiveness of Apple’s prevention efforts such as the amount of child sexual abuse material (CSAM) transmission prevented annually, by March 2025.

Each year, millions of images and videos of CSAM circulate online. In 2022, the National Center for Missing and Exploited Children received 31 million reports of alleged child sex abuse material.

Online sexual exploitation of children poses material business risks to Information, Communication and Technology (ICT) companies and investors. In addition to reputational and legal risks, emerging legislation, including the United States’ STOP CSAM Act and Kids On-line Safety Act, the European Union’s Digital Services Act, the United Kingdom’s Online Safety Bill, and Australia’s Online Safety Act aims to hold tech companies responsible for keeping children safe online, and impose penalties that present financial risks for failing to adequately address the problem.

Praxis has been active in engaging ICT companies on the subject of CSAM for several years. Praxis will continue to work with Apple and other ICT companies to prevent the transmission of CSAM.

Apple is held in the Praxis Growth Index Fund, the Praxis Value Index Fund, and the Praxis Impact Bond Fund.

Shareholder advocacy in action

At Praxis, our investments generate a competitive financial return and deliver a clear and direct benefit to people and our planet. We believe it is our responsibility to encourage companies toward responsible business behavior.

Disclosure

As of Sept. 30, 2023, the Praxis Value Index Fund has invested 0.07% of its assets in Apple; the Praxis Impact Bond Fund has invested 0.35% of its assets in Apple; and the Praxis Growth Index Fund has invested 13.54% of its assets in Apple. Fund holdings are subject to change. To obtain holdings as of the most recent quarter, visit praxisinvests.com.

You should consider the fund’s investment objectives, risks, sales charges and expenses carefully before you invest. The fund’s prospectus and summary prospectus contain this and other information. Please read them carefully before you invest.

Investment products are not FDIC insured, may lose value, and have no bank guarantee. Praxis Mutual Funds are advised by Praxis Investment Management, Inc. and distributed through Foreside Financial Services, LLC.