Why S&P Booted Tesla from its ESG index
Tesla is no longer up to par with environmental, social and government standards — at least not those set forth by the S&P 500 ESG Index.
S&P Dow Jones Indices has removed electric-vehicle giant Tesla (TSLA) from its sustainability benchmark as part of the index’s fourth annual rebalance after the Elon Musk-led company’s ESG rank slipped against its global peers, the index provider revealed in a Tuesday statement.
“While Tesla may be playing its part in taking fuel-powered cars off the road, it has fallen behind its peers when examined through a wider ESG lens,” Margaret Dorn, Head of ESG Indices at S&P Dow Jones said in a blog post.
Tesla’s overall ESG score has remained “fairly stable” year-over-year, according to S&P DJI. However, an increase in score for the broader industry group in which Tesla is categorized – Automobiles & Components – resulted Tesla’s slide.
Photo courtesy of Daniel Oberhaus.
Source: Yahoo Finance (link opens in a new window)
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