Fair Pay & Worker Respect

Fathom Holdings Inc. reports that none of its employees or agents are represented by unions and it is not a party to any collective bargaining agreements, indicating less than 1% collective bargaining coverage.

The company has faced multiple legal proceedings related to employment law and the misclassification of employees versus independent contractors, with five purported class action lawsuits mentioned, including a nationwide settlement for Fathom Realty. A significant portion of its workforce operates under precarious contracts, with 60-70% of staff, specifically all agents in brokerage operations except for employed state agents, retained as independent contractors without guaranteed hours or benefits. The company states it offers "relatively broad and affordable healthcare coverage in many of our markets," which maps to a 20-30% coverage rate.

Fair Trade & Ethical Sourcing

Fathom Holdings Inc. operates as a real estate brokerage, providing services such as mortgage, title, and insurance.

The company's business model does not involve the procurement or trade of physical commodities, raw materials, or manufacturing. Therefore, all KPIs under Fair Trade & Ethical Sourcing are scored as N/A, as there is no evidence of a supply chain requiring fair trade certifications, sourcing audits, or exposure to upstream labor practices related to physical goods.

Honest & Fair Business

Fathom Realty will pay a total of $2.95 million in settlement funds related to claims asserted in Burnett v. The National Association of Realtors., et al., with payments scheduled through October 2026.

The company filed an Amendment No. 1 on Form 10-K/A to include Part III information and correct a typographical error in a Section 906 Certification, which referenced an incorrect date and Principal Financial Officer. The company has a Code of Conduct applicable to all employees and Board members, which includes a whistle-blower policy allowing anonymous reporting of suspected violations to the Chief Financial Officer, immediate supervisor, or the Chairman of the Audit Committee, or via an Ethics hotline, without fear of retaliation. The Audit Committee is responsible for establishing and overseeing complaint procedures and initiating inquiries or investigations. The Board has determined that six of its directors are independent within the meaning of NASDAQ Stock Market listing rules. The company has an anti-corruption policy that strictly forbids payments or gifts to government officials where illegal and complies with "pay-to-play" laws. The Audit Committee may hire a third-party consultant to advise on interested-party transactions.

Planet-Friendly Business

The company has not established any documented science-based reduction targets or initiatives and does not participate in the Science Based Targets initiative (SBTi).

No net-zero target year has been mentioned for the company. There are no TCFD disclosures, and climate-risk governance is absent. The company conducts rudimentary climate scenario analysis, considering only a business-as-usual case and ignoring transition risks. Minimal disclosure of climate asset risks is provided, with generic statements and no quantification.

Respect for Cultures & Communities

Fathom Holdings Inc. has no reported cultural appropriation incidents and no specific cultural impact assessment protocol, which aligns with its business model.

The company provides an ethics hotline for reporting suspected violations, serving as a standard grievance process. Fathom offers a 'Cultural Diversity Skills Workshop' with over 40 culture-specific modules and a 'Cultural Detective program' to build cross-cultural understanding. However, there is no evidence of the percentage of employees who have completed this training. The company plans to develop Spanish-speaking operations and create resources and technology tools in Spanish, but currently, its language inclusivity score is 35-50/100, indicating limited local language incorporation.

Safe & Smart Tech

As of December 31, 2023, Fathom Holdings Inc. reported no risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the company.

Data is backed up every 6 hours and encrypted with 256-bit AES encryption before moving to a secure offsite location, and all Fathom application communications are encrypted with 128-bit SSL. The company performs quarterly systems penetration tests using an independent third-party vendor to identify vulnerabilities and schedules fixes as soon as possible. It also engages independent security specialists for penetration testing, network scanning, and source code reviews. Fathom Realty LLC and its websites comply with the Safe Harbor Framework of the United States and European Union. The company limits the information provided to affiliates and third-party service providers to the extent necessary for them to provide services. Users have controls to manage access to their data, can invite or remove individual users, and can delete a company from within Fathom. Users must choose strong passwords, and automatic lockout is enforced when incorrect passwords are entered, with automatic logout after an extended period of inactivity.

Zero Waste & Sustainable Products

The provided articles are financial reports and a governance statement. They do not contain any specific, concrete data points or initiatives related to waste management, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design, hazardous waste management, product durability, repairability, waste audits, zero waste certification, waste disposal violations, material efficiency, packaging-to-product ratio, waste reduction targets, supplier waste requirements, or customer waste education.

Therefore, no KPIs under the 'Zero Waste & Sustainable Products' value can be scored based on the evidence provided.