Why Tesla was kicked out of the S&P 500’s ESG index

Why Tesla was kicked out of the S&P 500’s ESG index

The S&P 500 booted electric vehicle maker Tesla from its ESG Index in an annual rebalancing. Meanwhile, , , and even oil and gas multinational were included on the list. The S&P 500 ESG Index uses environmental, social and governance data to rank and effectively recommend companies to investors. Its criteria include hundreds of data points per company that pertain to the way businesses affect the planet and treat stakeholders beyond shareholders — including customers, employees, vendors, partners and neighbors. Changes to the index took effect on May 2, and a spokesperson for the index explained why they were made in a It said that Tesla's "lack of a low-carbon strategy" and "codes of business conduct," along with racism and poor working conditions reported at Tesla's factory in Fremont, California, affected the score. Tesla's handling of an investigation by the National Highway Transportation Safety Administration also weighed on its score. While Tesla's stated mission is to accelerate the world's transition to sustainable energy, in it settled with the Environmental Protection Agency after years of Clean Air Act violations and neglecting to track its own emissions. Tesla ranked 22nd on last year's , compiled annually by U-Mass Amherst Political Economy Research