The home of electric cars Tesla has been removed from the index ESG of S&P 500.
The latter uses data environmental, social e you governance to effectively classify and advise companies to investors.
Its criteria include hundreds of observations and data on companies, covering how they affect the planet with more or less sustainable choices and deal with shareholders, customers, employees, suppliers, partners and neighbors.
The exclusion of the electric vehicle giant from the index sounds like a joke, especially considering that giants like Apple, Amazon, Microsoft, Exxon Mobile have instead been accepted.
“Although Tesla can do its part in getting fuel-powered cars off the road, it has lagged behind its peers when examined through ESG objectives wider “the S&P spokesperson wrote.
What does it mean and why the company of Musk suffered this blow.
Tesla rejected by the S&P 500 ESG index: reasons and consequences
In a blog post Wednesday, the S&P explained why it kicked Tesla off its ESG index earlier this month.
The “Lack of a low-carbon strategy” and gods “Codes of business conduct”, along with racism and poor working conditions reported at the Tesla factory in Fremont, California, affected the score. The handling of an investigation by the National Highway Transportation Safety Administration also weighed on the decision.
While Tesla’s stated mission is to accelerate the world’s transition to sustainable energy, in February of this year it made an agreement with the Environmental Protection Agency after years of violating the Clean Air Act and neglecting to keep track of your emissions.
Tesla also ranked 22nd in the index Toxic 100 Air Polluters last year, compiled by the U-Mass Amherst Political Economy Research Institute, outperforming Exxon Mobil, which came in at 26th.
Not only that, the company also revealed that it is under investigation for the management of waste in the state of California and having had to pay a fine in Germany for failing to comply with the country’s “collection” obligations for exhausted batteries.
Meanwhile, the California Department of Fair Employment and Housing is suing Tesla for harassment and discrimination against blacks at its Fremont auto plant.
The reaction of Musk it was not long in coming and arrived, as expected, via Twitter:
“Exxon is ranked in the top ten best in the world for environment, social and governance (ESG) by the S&P 500, while Tesla is not on the list! ESG is a scam. It was exploited by false warriors of social justice. “
Although, in general, the critical issues on the ESG criteria used remain open, the fact is another tile for the billionaire, grappling with the Twitter deal not yet concluded.
Tesla it fell to its lowest level this year, wiping $ 12.3 billion from its wealth.
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