Tesla was excluded from the S&P500 ESG index, which evaluates companies, including in terms of respect for the environment. Musk does not hide his anger, especially since he was included in the list among others by Exxon Mobil, one of the world’s largest fossil fuel companies.
“Exxon is one of the top 10 global environmental, social and governance companies in the ESG index, and Tesla didn’t even make the list. ESG is a scam being used to fight back by false advocates of social causes,” Elon Musk tweeted.
In one of his responses, he wrote that he was beginning to see the corporate side of ESG as “the devil incarnate.”
What is the ESG Index?
The ESG Index, backed by the S&P 500 rating agency, takes into account environmental (for example, sustainability and plans to reduce our carbon footprint), social and governance considerations. Based on these data and classical financial factors, an index is compiled that serves as recommendations for investors.
Elon Musk’s bitterness seems especially special when you consider the environmental aspect that the index takes into account. Tesla, which makes electric vehicles and seeks to accelerate transformation and communication to move away from fossil fuels, has dropped out of the ESG list to include companies directly profiting from oil, coal and gas production.
Why did Tesla fall in the ESG index?
Margaret Dorn, director of the ESG Index in North America, addressed this issue directly. She explained that Tesla’s ESG score has remained the same for several years, but the performance of other companies is growing, causing Tesla to not so much retreat as to stand still while others move forward.
According to Margaret Dorn, in the case of Tesla, there are also several factors that reduce her valuation. One of them is the absence of a formal strategy for reducing the carbon footprint and the absence of a code of business conduct that defines the company’s strategy in the event of corruption and anti-competitive practices.
In addition, Tesla’s valuation was undermined by two incidents of racial discrimination and poor working conditions at the Fremont, California plant.
Musk pissed off Democrats
In his tweets, Musk did not address these allegations and focused solely on environmental issues. In recent days, Musk has also begun once again to criticize academia and public figures for being out of touch with reality and destroying American society. Musk also wrote on record that he has been a voter for the Democratic Party so far, which he considered to be basically “the party of good.” However, according to Musk, the Democrats have become a party of hatred and division, and he said that from now on he will vote for the Republican.
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