S&P Dow Jones Indices Inc has removed electric car maker Tesla from a wide range of concerns over racial discrimination allegations and crashes related to self-driving cars, an executive at S&P Dow Jones Indices said on Wednesday. Removed from the tracked S&P 500 ESG Index.
The S&P 500 ESG Index is a broad-based, market capitalization-weighted index designed to measure the performance of securities that meet sustainability criteria.
Margaret Dorn, head of ESG indices for North America at S&P Dow Jones Indices, said in an interview that factors that led to Tesla’s exit from the index included the fact that Tesla did not publish its low-carbon strategy or code of business conduct. relevant details.
She said that while Tesla’s products help reduce greenhouse gas emissions, its other issues and lack of disclosure compared with industry peers should be of concern to investors, who want to benefit from environmental, social and governance (ESG) ) criteria to judge the company.
Exxon is rated top ten best in world for environment, social & governance (ESG) by S&P 500, while Tesla didn’t make the list!
ESG is a scam. It has been weaponized by phony social justice warriors.
— Elon Musk (@elonmusk) May 18, 2022
In response, Tesla CEO Elon Musk responded with a strongly worded tweet, saying, “ESG is a scam. Exxon Mobil is ranked in the S&P 500 in the top 10 for global environmental, social and governance, while Tesla is not on the list! ESG is a scam. It has been weaponized,” Musk said.
S&P Dow Jones Indices said in a statement that the sustainability index also added Twitter and oil refiner Phillips 66, which will soon be controlled by Musk, from May 2, and removed Delta Air Lines and Snow. Folong Company.
The back-and-forth changes in constituents reflect a broader debate on the metrics that measure companies’ performance on environmental, social, and governance issues. Environmental, social and governance is a growing areas of investment.