Tesla is once again included in the S&P 500 ESG index, after a high-profile removal last year. The index made no announcement, and its valuation of electric vehicles and clean energy storage solutions maker is lower than that of a major tobacco company.
Tesla re-entered the S&P 500 Environmental, Social, and Governance (ESG) index. It was done quietly, without attracting attention. The index has not made an announcement compared to last year when it delisted the company and made an announcement, drawing a lot of attention to what happened. It is worth noting that Tesla, which makes a huge contribution to environmental friendliness, has an ESG score of only 37, while Philip Morris, a tobacco company, has a score of 84.
Sure, you all wanted to know, right? @SPGlobalRatings do you have any credibility left? 🤮— 💙 Alexandra Merz (@TeslaBoomerMama) May 31, 2023
And how come you didn't make the same hoopla this year (on April 21st) when you included Tesla back into the S&P 500 ESG index? Much more catchy last year, right? This time tiptoeing… pic.twitter.com/aUEUIVGidK
Last year, Tesla was kicked out of the S&P 500 ESG Index. S&P Dow Jones Indices reported that Tesla's ESG score has remained fairly stable over the past year, but it is down from the improvement in global peers. The index provider also cited concerns about working conditions and the company's investigation into deaths and injuries related to its driver assistance systems. In addition, a lack of low-carbon strategy and codes of business was cited as the reason for the decision. The index provider also did not miss a chance to downplay the manufacturer's exceptional achievements, reducing them to a passing mention, with negative wording.
This caused great outrage among investors and fans of the company, as Tesla reduces the impact of its production on the environment every year by developing and applying the latest processes in the manufacturing of its products, as well as eliminating those that are the most polluting. The company closely monitors its supply chain, partnering only with those suppliers who mine/manufacture in an environmentally friendly way, and also does not allow the use of child or forced labor and human trafficking. Tesla provides unique working conditions, decent pay, and gives good prospects for career development and growth, for which it is the second most desirable company for employment for graduate engineers, after SpaceX.
However, the most important thing to note is that Tesla makes products that have a positive impact on the environment. The company has created an entire ecosystem via the use of which consumers critically reduce their carbon footprint. Customers using solar energy can power their homes and charge their cars, all without producing carbon emissions in the process.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.