Even though Tesla has a “self-declared mission” to “accelerate the world’s transition to sustainable energy,” the company was eliminated because its ESG score fell in comparison to other auto companies, Dorn wrote.
Tesla Failed Two Major Criteria Several factors contributed to Tesla’s lower ESG score, including a “decline in criteria level scores related to Tesla’s (lack of) low carbon strategy and codes of business conduct,” she wrote.
Additional analysis also showed that there were “two separate events centered around claims of racial discrimination and poor working conditions at Tesla’s Fremont factory, as well as its handling of the NHTSA investigation after multiple deaths and injuries were linked to its autopilot vehicles,” Dorn wrote.
These two events resulted in a negative impact on the company’s S&P DJI ESG Score at the criteria level and also its overall score.
“While Tesla may be playing its part in taking fuel-powered cars off the road, it has fallen behind its peers when examined through a wider ESG lens,” she wrote.
Musk retorted on Twitter that Tesla is doing the opposite and helping the environment.
He compared Tesla to oil producer Exxon (XOM) and said he believes that ESG is a “scam” due to “phony social justice warriors.”
Musk also blamed S&P Global Ratings and said that ESG is a “scam” even though the investment industry adopted ESG metrics several years ago as investors seek improvements in lower carbon goals, greater diversity in the workforce and more corporate governance.
The billionaire has regularly voiced his displeasures out on Twitter (TWTR Get Twitter, Inc. Report , a company he sought to acquire with a $44 billion offer to privatize the social media company in April. He has recently challenged Twitter’s board of directors and management and said on May 17 that he wants the microblogging website to verify its data on the number of spam accounts and challenged them by stating the takeover deal is no longer on the table.
“My offer was based on Twitter’s SEC filings being accurate. Yesterday, Twitter’s CEO publicly refused to show proof of <5%. This deal cannot move forward until he does,” Musk said.
Twitter’s board stood up to his challenge and said they would “close the transaction and enforce the merger agreement.”