The index provider also cited concerns about working conditions and the company’s handling of investigations into deaths and injuries linked to its self-driving systems. He noted that the lack of a low-carbon strategy and business codes of conduct also worked against Elon Musk.
“While Tesla may play a role in phasing out fuel cars, it has fallen behind its peers when examined through a broader ESG lens,” said Margaret Dorn, senior manager and head of ESG Indicators at S&P Dow Jones in North America. Blog post.
An analysis seeking to determine the risks to the company arising from any controversial incident identified “two separate events that centered on allegations of racial discrimination and poor working conditions at Tesla’s plant in Fremont, as well as its handling of the NHTSA investigation following those multiple deaths and injuries. They were linked to autopilot, Dorn Books.
He said that both had a negative impact on Tesla’s score. Tesla did not immediately respond to an emailed request for comment.
Berkshire Hathaway, Johnson & Johnson and Meta Platforms were other large companies that were also excluded from the ESG index.
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