1. Why Elon Musk’s ESG Backlash Sparked a Nationwide Debate

    Why Elon Musk’s ESG Backlash Sparked a Nationwide Debate

    When Tesla, the world’s leading maker of electric vehicles, was dropped last week from S&P’s ESG Index—which assesses companies’ sustainability efforts and corporate culture—it infuriated CEO Elon Musk, who immediately took to Twitter to call ESG a “scam” that is “weaponized by phony social justice warriors.” In its defense, S&P clarified that Tesla’s lack of published details related to its “low carbon strategy” or “codes of business conduct” contributed to its departure from the index and even though Tesla’s products help reduce overall carbon emissions, the company has faulted for claims of ...

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  2. Quotes

    1. I think it at least odd that the most successful EV company on earth is excluded for not having a somewhat arbitrary carbon reduction target.
    2. Musk feels his company is basically already an honor student in this realm and obviously believes taking the standardized test is a waste of time and money.
    3. ESG measurements are not about social impact. ESG measures whether the company's is operating in an environmentally and socially responsible manner—and S&P's index specifically seeks to apply this measurement across industries.
    4. Until the ESG industry is able to convert ESG metrics into dollar values, ESG ratings will be defined by subjectivity and lack of transparency, and will continue to be the ugly stepchild vis-à-vis traditional financial credit ratings.
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