Tesla CEO Elon Musk tweeted again over the weekend criticizing ESG (environmental, social and corporate governance) ratings, calling for an end to “extremely hypocritical ESG ratings” and pointing out that the current rating system allows oil companies to get better scores, but Tesla’s score is low, and the whole system is a game.
Musk wrote: “Yes! Stop the outrageous fake ESG assessments, Tesla gets a low score while oil companies can get a good score. The whole system is a game!”
This is not the first time Musk has criticized the ESG rating system. After his dispute with Bill Gates over Gates’ short Tesla came to light last month, some Twitter users commented that Gates’ short Tesla did not what is the problem. Because Tesla’s ESG rating is only average, it is also rated as “inconsistent” with climate goals.
Musk responded: “ESG ratings are meaningless!” Tesla, the electric car maker owned by Musk, also released a report on Friday citing fundamental flaws in the existing ESG rating methodology.
In its 2021 Impact Report, Tesla said that the current ESG report focuses on measuring the dollar value of risk/reward rather than measuring the scope of its positive impact on the world. Tesla claims that this will mean that investors who entrust their money to ESG funds of large investment institutions will invest in companies that worsen rather than ameliorate climate change.