Elon Musk evidently has a diabolical view of environmental, social and company governance – extra generally known as “ESG.”
His feedback got here in response to a Sunday Twitter publish from small enterprise professional and advisor Carol Roth.
“Keep in mind when @ElonMusk needed to carry free speech to Twitter after which S&P eliminated Tesla from their ESG 500 index, however stored in Exxon?” Roth wrote. “ESG is enterprise social credit score. It’s a method to manage capital, preserve enterprise folks in step with the narrative, and, in the end, management you.”
In characteristically temporary vogue, Musk responded: “ESG is the satan.”
ESG refers to non-financial requirements utilized by asset managers and traders in monetary decision-making. ESG investing is usually known as sustainable investing or impression investing, and traders can use ESG requirements and standards to display screen potential investments and monitor non-financial dangers.
Earlier this 12 months, Tesla was eliminated from the S&P 500’s ESG index. S&P Dow Jones Indices’ senior director and head of ESG indices Margaret Dorn mentioned in a Could weblog publish that Tesla was not eligible for inclusion within the index as a result of its S&P DPJ ESG rating had fallen into the underside 25% of its international trade group friends regardless of remaining “pretty steady” 12 months over 12 months.
Components that contributed to Tesla’s decrease rating embody its lack of “low carbon power and codes of enterprise conduct.”
“Whereas Tesla could also be taking part in its half in taking fuel-powered vehicles off the highway, it has fallen behind its friends when examined by a wider ESG lens,” Dorn mentioned.
FOX Enterprise Kelsey Koberg contributed to this report.
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