Predictably, Elon Musk lashed out on Twitter — the social media platform he may have pretended he wants to buy — on Wednesday to complain that Tesla was delisted from a stock market index that includes companies that committed to the environment, social concerns such as diversity, and corporate governance.
“ESG is a blatant scam!” Musk said, referring to the acronym that represents these factors. “It was armed by false social justice warriors,” he tweeted separately.
Musk followed up with a post a meme with Dwayne “The Rock” Johnson, with a caption that defines a company’s ESG score as “how compliant your company is with the leftist agenda.”
In a blog announcing this year’s updates to the list – known as the S&P 500 ESG Index – the head of the company’s North American ESG indexes, Margaret Dorn, predicted Musk’s outrage.
“How can a company whose self-proclaimed mission is to ‘accelerate the world’s transition to sustainable energy’ not end up on an ESG index?” she wrote. “There are many reasons.”
Initially, the electric carmaker’s ESG score fell below the bottom 25 percent of its industry peers, Dorn said, making it ineligible. The decline was explained in part by his findings related to “codes of business conduct,” his “editing” of a federal safety investigation after “multiple deaths and injuries were linked to his autopilot vehicles,” and allegations of “racial discrimination and poor working conditions” in Tesla’s Fremont plant.”
“While Tesla may be doing its part to take fuel-powered cars off the road, it has fallen behind its peers when viewed through a broader ESG lens,” Dorn wrote.
Musk apparently didn’t believe that explanation, nor did he publicly address the nuances of the blog post. Instead, he tweeted that S&P Global Ratings “has lost its integrity.” He pointed out that fossil fuel giant Exxon Mobil made the cut despite its poor environmental record.
“Political attacks on me will escalate dramatically in the coming months,” Musk added, seemingly in reference to the news.
Berkshire Hathaway, Johnson & Johnson and Facebook’s parent company Meta were also removed from the index.
Tesla has come under fire in recent months over its working conditions, particularly at its Fremont, California plant. Earlier this year, the state Department of Fair Employment and Housing filed a lawsuit against Tesla, alleging it had received “hundreds of complaints from workers” and found reason to believe the Fremont plant was “a racially segregated workplace.” is where black workers are subjected to racial abuse and discrimination in job assignments, discipline, pay and promotion.”
Several employees have filed lawsuits of their own, including a former employee, Owen Diaz, who received a $137 million judgment last year after he claimed his superiors taunted him with racial epithets. (The judgment was later reduced to $15 million.)
Diaz told The Daily Beast last fall that Musk never bothered with an apology.
Tesla has called the California DFEH lawsuit “misguided,” stressing that it “opposes all forms of discrimination and harassment and has a dedicated employee relations team to respond to and investigate all complaints.”
Apparently, the bureaucrats at S&P still see cause for concern.
https://www.thedailybeast.com/elon-musk-lashes-out-after-tesla-dropped-from-social-good-sandp-esg-index?source=articles&via=rss Elon Musk lashes out after Tesla falls out of the ‘Social Good’ S&P ESG Index