Tesla was removed from the S&P 500 Environmental, Social, and Governance (ESG) Index. Meanwhile, Exxon still ranks in the top ten.
What is ESG? It’s a score that stakeholders and investment companies now use to determine how businesses impact the planet and society based on environmental, social, and controversial incidents. These standards align with progressive goals like diversity and inclusion, fighting climate change, etc.
The more a company adheres to progressive ideological ESG guidelines set by powerful investment firms, the more they benefit.
According to the S&P, Tesla was removed from the S&P 500 ESG Index because of carbon strategy, racial discrimination, poor working conditions, and poor handling of autopilot vehicle deaths. But this news also comes as Elon Musk has become controversial for his outspoken political beliefs and attempt to buy Twitter.
Tesla-CEO Elon Musk responded by calling the ESG scores a “scam” being “weaponized by phony social justice warriors.” The ESG scores have allowed investors and shareholders to claim that Exxon is more beneficial to society than Tesla.