Tesla is no longer included in the S&P 500 ESG (Environment, Social Services and Governance) index, which could affect the company’s stock price. The move led to several angry tweets from the company’s CEO Ilona Maska.

Decision to remove Tesla from S&P 500 ESG was taken as a result of being found guilty of racial discrimination and, oddly enough, of environmental reputation – or lack thereof. Margaret Dorn, senior director and head of ESG S&P Dow Jones, said the organization could not just take the company at its word that it was taking steps to improve the world.

“You can’t just take a company mission statement for face value, you have to look at their practice in all these key aspects,” she said. “While Tesla can play a role in the adoption cars moving fuel, off the roadit lags behind its counterparts when viewed through a broader ESG lens. ”

Read also: The list of the 100 most influential according to Time included Ford and Rivian, but not Tesla

The S&P 500 ESG is an index that measures the performance of securities that meet sustainability and social criteria. ESGs are not part of mandatory financial reporting, but many companies disclose information in sustainability reports. Tesla did not. Indeed, it was marked as a point against the automaker.

“For any element of the ESG assessment, be it E, S or G, disclosure is very important,” said Ray McConville, S&P spokesman. Baron. “If there is not much information available, whether it is publicly available information or information provided in our corporate sustainability assessment survey, then it will negatively affect the outcome. So in the case of Tesla and others, the problem is partly in the lack of disclosure. ”

Elon Musk called ESG “outrageous scam”

Meanwhile, Musk wrote on Twitter that the oil company Exxon is on the S&P 500 ESG, and Tesla is not. He also called it an “outrageous scam”, adding that political attacks on him were “sharply exacerbated in the coming months”.

racial discrimination and poor working conditions at the Tesla plant in Fremont, as well as the NHTSA investigation after numerous deaths and injuries have been linked to autopilators. ” Bloomberg reports.

Excluding Tesla from this list could have a modest impact on stock prices. The index, however, has a relatively small footprint in the world of asset management. Although the company’s shares fell 5.5 percent in trading at noon, this may have been due to the fact that the broad market was also weak.


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