Is Musk showing Rage or Offering a Logical Outlook on ESG Ratings?
Musk could just be offering justified logic in response to Tesla’s removal from the S&P 500 ESG (Environmental, Social, and General) Index...
Rage has come from Elon Musk… Or, is the media blowing it out of proportion and Musk is just offering justified logic in response to Tesla’s removal from the S&P 500 ESG (Environmental, Social, and General) Index? First, let me explain this index. The S&P 500 ESG is a broad-based, market cap weighted index designed to measure the performance of companies meeting specific criteria on sustainability.
However, one of the companies many would argue goes above and beyond for sustainability has been removed - Tesla. Elon Musk shared his emotions on Twitter as ExxonMobil made it to the top ten best in the S&P 500 ESG.
He also went on to state, “S&P Global Ratings has lost their integrity.”
I am also positive that Tesla produces more “clean energy” than others. This would mean that those companies who fill the S&P’s pockets have unfairly made the list. However, others even suggested that Musk’s recent comment on turning his vote in favor of the Republican party in the next elections has resulted in the company losing its credibility.
Many other prominent names were a bit confused by the decision. Cathie Wood even chimed in:
Ross Gerber of GK ETF also had an opinion on the matter (in thread):
The reasons for the removal were that Tesla’s ESG score has slipped in comparison to global peers, concerns related to working conditions, and investigations into drive-assisted systems-related deaths and injuries have also resulted in a lower ESG score for Tesla.