Elon Musk: ESG Is A Scam

The removal of Tesla from the S&P 500 ESG index is a big blow to green technology. The company has been one if its most reliable suppliers, but now it will be absent from what many consider to be an iconic list due in part by their recent issues with racial discrimination and autopilot vehicle crashes. Through Elon Musk’s Twitter account he argued that “ESG itself seems like a scam”.

The sustainability index has added Twitter and Phillips 66 to its list of companies. These new additions took effect on May 2nd while dropping Delta Air Lines (DAL) as well as Chevron Corporation(OG).

The debate over ESG metrics has been ongoing for some time now. It reflects the growing number of investors who are looking beyond traditional accounting numbers when making their decisions about which companies will best represent them in society and on what terms with future profits at stake, too.

Tesla is not just an auto industry company. It has become one of the most valuable companies in America by pioneering electric vehicles and expanding into battery storage for solar-power systems as well.

The lack of published details on Tesla’s low carbon strategy and business conduct codes were what contributed to their departure from the index.

Tesla has been making headlines for years as the world’s first and only company to produce electric vehicles with a range greater than 200 miles per charge. However, some of its other issues such as lack or poor disclosures relative to ESG criteria should also raise concerns among investors looking into judging Tesla based on environmental impacts alone.

“You can’t just take a company’s mission statement at face value; you have to look at their practices across all those key dimensions.” This was said by an expert on corporate social responsibility.

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Musk called the ESG methodologies ‘fundamentally flawed.’ He went on to say that this is an example of how “phony” and unqualified these so-called social justice warriors really are.
Focused solely on profits at any cost, Tesla has been found guilty of manipulating its own product line with recycled materials when in reality it’s just a token effort put forth by environmentally conscious CEO Elon Musk.

When asked about the tweet, an index provider representative said Musk may have been referring to a list on their blog post of the largest 10 corporations by market cap in ESG indexes after the removal of Tesla and others. The list is “not ranked as best companies for sustainability,” according to them; Exxon now accounts for 1.443%. Apple Inc was at 9.657% before it dropped down last year due to new regulations implemented across various industries that promote sustainable development goals through reduced emissions.

The debate over whether ESG funds are effective in promoting change has been sparked by investors who want to see tangible results from their investment.
The push for more diversity and climate-friendly policies comes at a time when many Americans feel like the country is slipping away from them, with economic equality becoming an increasingly rare thing throughout America’s landscapes.

It’s no secret that investors are concerned about issues like diversity and climate change. They’ve poured billions of dollars into funds using ESG criteria to pick stocks, prompting debate about how effectively these “green” investment strategies promote social good or whether they push companies too much on matters better left up to government policy (or lack thereof).

The S&P 500 ESG Index fund received a D-grade from activist group As You Sow for containing fossil fuel stocks which account for 6.5% of its assets in spite of its sustainability mandate and name suggesting it is environmentally friendly.

S&P’s new index aims to keep industries weighted the same as they are in its regular S&P 500 while enhancing their sustainability profile. This means it can include oil companies that lack big players like Facebook parent Meta Platforms and Wells Fargo & Co., but won’t have any impact on how valuable those firms might be considered.

Tesla’s ESG score has declined slightly from last year, but at the same time, other automakers have improved their average. This causes Tesla to fall out of this index because it is considered low-quartile performance.

Dorn’s report offers more insight into the growing transparency of ESG ratings, which are becoming increasingly important for investors. Companies like Tesla get an “average” from MSCI Inc while Morningstar’s Sustainalytics unit gives them a medium risk rating based on their website information.

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