An S&P Dow Jones Indices executive said it had removed Tesla from the S&P 500 ESG Index because of issues including claims of racial discrimination and crashes linked to its autopilot vehicles.
Highlights
- S&P Dow Jones Indices says it has removed electric carmaker Tesla from the widely followed index.
- Tesla CEO Elon Musk responded with harsh tweets including that “ESG is a scam” The back-and-forth over the index changes reflects a wider debate about the metrics used to judge corporate performance on environmental, social and governance (ESG) issues.
- The company has previously called ESG methodologies “fundamentally flawed” The index also added soon-to-be-Musk-controlled Twitter Inc (TWTRN) and oil refiner Phillips 66 (PSX.N) while dropping Delta Air Lines and Chevron Corp.