The world’s leading manufacturer of electric vehicles has lost its place in the ESG version of the S&P 500 index.
& P Dow Jones Indices says Tesla’s environmental, social and governance standards have remained “relatively stable” in recent years, but have slipped ahead of improving global levels.
The index provider also mentioned concerns about working conditions and the company’s investigation into deaths and injuries related to its driver assistance systems. The lack of a low-carbon strategy and business code of conduct has also had a negative impact on Elon Musko.
“While Tesla can play its part in removing fuel-powered cars from the road, it lags behind its counterparts in research through a broader ESG lens,” said Margaret Dorn, senior director and head of the ESG index at S&P Dow Jones North America. , is written in a blog post.
Tesla did not immediately respond to the request for comment sent by e-mail, although Mr Muskas described the ESG as “fraud” when writing on Twitter.
Tesla also recently criticized ESG figures as “fundamentally flawed” in its annual report. Mr Musk said on Twitter that “ESG is the epitome of the devil.”
Ms Dorn wrote that an analysis to identify the risk to the company from any controversial incident identified “two separate incidents involving allegations of racial discrimination and poor working conditions at the Tesla Fremont, California plant, as well as an NHTSA investigation. enforcement. after many deaths and injuries were associated with his autopilot.
She said both had a negative impact on Tesla’s results.
According to the S&P Dow Jones website, the S&P 500 ESG Index is monitored by at least 16 exchange traded funds. Berkshire Hathaway, Johnson & Johnson and Meta Platforms are among the other big companies that are also not on the list.
Kristin Hull, founder of the Nia Impact Capital sustainability fund in Auckland, California, which forces Tesla to address employee concerns, said it was easier for her to “finally be accountable.”
“This move signals to other companies that ESG standards and improvements are important,” she said. “And it will have material, financial consequences.”
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