Elon Musk Calls ESG ‘An Outrageous Scam’ After Tesla Was Removed From Index

Tesla Inc.

TSLA -6.80%

was recently excluded from an equity index that tracks environmental, social and governance principles.

Elon Musk is not satisfied.

In a series of tweets, Mr. Musk, the chief executive of Tesla, called ESG “an outrageous scam“Lament that Exxon Mobil Corp. XOM -1.59%

remained in the index and stated that the company behind the move had “lose their integrity. ”

“Exxon is rated by the S&P 500 as the top 10 best companies in the world in terms of environment, society and governance (ESG), while Tesla does not make the list!” Mr. Musk, the richest man in the world, say on Twitter.

“ESG is a scam,” he added. “It has been weaponized by rogue social justice fighters.”

Exxon was not immediately available for comment.

The tweets come after the S&P Dow Jones Indices recently removed the electric vehicle maker and several other companies from the ESG index as part of its annual rebalancing process. In an explanation of the move, the index operator said Tesla had fallen behind its peers for a variety of reasons including its carbon strategy, working conditions and its handling of an investigation. regulation.

“While Tesla may be engaged in getting fuel-powered cars on the road, it has lagged behind its peers when viewed through a broader ESG lens,” S&P said. in a blog post detailing the stat changes.

An S&P spokesman did not comment specifically on Mr. Musk. “We just need to reiterate the explanation given” about the detailed changes to the index, a spokesperson said.

S&P Dow Jones Indices is a joint venture between S&P Global Inc. and CME Group Inc. Dow Jones & Co., publisher of The Wall Street Journal, is not a related party in the joint venture.

Elon Musk said he thinks ‘political attacks against me will escalate significantly in the coming months.’


Photo:

ANDREW KELLY / REUTERS

Investing in ESGs has grown in popularity in recent years as investors look to pour their money into more socially conscious companies. By the end of 2021, assets in the ESG fund reached $2.74 trillion, Morningstar said. The popular three-letter acronym is a category that covers how companies perform in areas like diversity, their impact on the environment, and more.

Mr Musk, who agreed to buy Twitter for $44 billion but recently indicated that the deal is “on hold” say he thinks “The political attacks against me will escalate significantly in the coming months.”

In a separate tweet he added that Tesla does “more for the environment than any other company has ever done!” Comments included a meme showing one person asking what the ESG score is, and another replying that “it determines how compliant your business is with the leftist agenda.”

Mr Musk followed up that tweet with one person saying he now plans to vote Republican after voting Democrat in the past.

Tesla was the largest company excluded from the ESG index as measured by its weight in the S&P 500. Other companies excluded from the index include Johnson & Johnson and Meta Platforms Inc..

As for Tesla in particular, S&P said it had no low-carbon strategy, racist claims, poor working conditions at the Fremont factory, and regulators’ handling of the investigation related to Tesla. their vehicle-related injuries and deaths.

According to S&P, the changes to the index took effect on May 2.

Write to Allison Prang at allison.prang@wsj.com

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared on 19 May 2022, print edition as ‘Musk Calls ESG Index ‘Outrageous Scam’. ”

https://www.wsj.com/articles/elon-musk-calls-esg-an-outrageous-scam-after-tesla-was-removed-from-index-11652905289?mod=rss_markets_main Elon Musk Calls ESG ‘An Outrageous Scam’ After Tesla Was Removed From Index

Edmund DeMarche

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