News

After Tesla Was Removed From The Index, Musk Called ESG “An Outrageous Scam”

Tesla Inc.’s score on environmental, social, and governance standards has remained “pretty steady” over the past year, according to S&P Dow Jones Indices, although it has fallen behind improving worldwide peers.The world’s most well-known electric vehicle manufacturer has dropped out of the S&P 500 ESG Index.

After Tesla Was Removed From The Index, Musk Called ESG “An Outrageous Scam”

The index provider also cited concerns related to working conditions and the firm’s handling of an investigation into deaths and injuries linked to its driver-assistance systems. A lack of low-carbon strategy and codes of business conduct also counted against Elon Musk’s company, it said.

“While Tesla may be playing its part in taking fuel-powered cars off the road, it has fallen behind its peers when examined through a wider ESG lens,” Margaret Dorn, senior director and head of ESG indices for S&P Dow Jones in North America, said in a Tuesday blog post.

CEO Tesla writing on Twitter on Wednesday Musk described ESG as a “scam”

After Tesla Was Removed From The Index, Musk Called ESG “An Outrageous Scam”

In a recent annual report, Tesla called ESG measurements “fundamentally incorrect,” while Musk declared in an April tweet that “corporate ESG is the devil incarnate.”

Dorn wrote that an analysis seeking to identify risks to the company stemming from any controversial incidents identified:

“Two separate events centered around claims of racial discrimination and poor working conditions at Tesla’s Fremont factory, as well as its handling of the NHTSA investigation after multiple deaths and injuries were linked to its autopilot.”

Both had a negative impact on Tesla’s score, she said.

The S&P 500 ESG Index is tracked by at least 16 exchange-traded funds, according to the S&P Dow Jones website. Berkshire Hathaway, Johnson & Johnson and Meta Platforms Inc. are among other large companies that also don’t make the list.

Kristin Hull, founder of Nia Impact Capital, a sustainability fund in Oakland, California that has been pressing Tesla to address worker issues, said she was relieved that there was “finally accountability.”

“This move signals to other companies that ESG standards, and improving them, matters,” she said. “And that there will be material, financial implications.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

CoinCu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Missed ICO of Avalanche? Here’s What You Need to Know and Why This Crypto Coin Could Be Your Next Best Investment

For those who missed the initial coin offering (ICO) of Avalanche, it’s a reminder of…

6 mins ago

Indiana Farmer Struck a Windfall with DogWifhat, Now Goes All in on BlockDAG as BULLRUN100 Bonus Goes Live

Indiana Farmer Struck a Windfall with DogWifhat, Now Goes All in on BlockDAG as BULLRUN100…

36 mins ago

Tether Completes The First USDT Oil Transaction in Middle East

Tether completes the first USDT oil transaction in the Middle East, funding a $45 million…

41 mins ago

Celebrating the Success of Zircuit’s ZRC EigenLayer Fairdrop

George Town, Grand Cayman, 8th November 2024, Chainwire

1 hour ago

BIO Protocol, DeSci sector, invested by Binance Labs

Binance Labs makes its first foray into decentralized science (DeSci) with an investment in BIO…

2 hours ago

Crypto Industry Campaign Wins Overwhelming Victory With $135M Spent

The crypto industry campaign spent $135 million supporting over 50 U.S. election candidates in 2024,…

3 hours ago

This website uses cookies.