Elon Musk angry after removing Tesla from S&P 500’s top duo

Tesla and S&P 500 are not included in the ESG (Environment, Social, and Governance) index, which could affect the company’s stock price. The move has sparked a number of angry tweets from the company’s CEO, Elon Musk.

The decision to remove Tesla from the S&P 500 ESG was made because it had been convicted of racial discrimination and, surprisingly, its environmental record – or lack thereof. Margaret Dorn, senior director and head of S&P Dow Jones ESG Index, said the company could not just take the company’s word that it was taking steps to improve the world.

“You can’t just take a company’s mission statement at face value, you have to look at their practices across all of those core dimensions,” he said. “While Tesla could play a role in keeping fuel-powered vehicles off the road, it lags behind its peers when tested through a wide ESG lens.”

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The S&P 500 ESG is an indicator that seeks to measure the performance of securities by meeting sustainability and social criteria. ESGs are not part of the mandatory financial reporting but many companies are publishing sustainable reports, which Tesla did not. In fact, it was cited as a point against the automaker.

“For any component of the ESG score, whether it’s E, S, or G, expression is crucial,” Ray McConnell, an S&P spokesman, told Baron’s. “If our Corporate Sustainability Assessment survey does not provide publicly available data or information on why a lot of information is not available, it will negatively affect a score. So in the case of Tesla and others, the problem is a partial lack of disclosure. “

Elon Musk called the ESG “a terrible scandal.”

Musk, meanwhile, tweeted that the oil company is listed on the Exxon S&P 500 ESG, while Tesla is not, which is true. He also called it a “terrible scandal” and added that political attacks on him would “increase dramatically in the coming months.”

Dorn, however, wrote that an analysis to determine Tesla’s risk arising from the controversial incident identified “two separate incidents centering on racial discrimination and poor working conditions at the Tesla Fremont factory, as well as conducting an NHTSA investigation into multiple deaths.” Was, ”Bloomberg reported.

Excluding Tesla from the list could have a small effect on its stock price. Although the index has relatively small footprints in the world of asset-management. Although the company’s shares fell 5.5 percent in midday trading, it could only be due to the weakness of the broader market.

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