By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Investing > Tesla Got Added to an ESG Index. Chevron, Philip Morris Scored Higher.
Investing

Tesla Got Added to an ESG Index. Chevron, Philip Morris Scored Higher.

News Room
Last updated: 2023/06/02 at 4:08 PM
By News Room
Share
5 Min Read
SHARE

For investors interested in
Tesla
and companies with the highest environmental, social and governance, or ESG, standards, there is some good news and some bad news.

The good news is Tesla was added to the
S&P 500
ESG Index in April. It means investment managers tracking the benchmark can buy Tesla stock. It’s also an acknowledgment that Tesla is running its business in line ESG principles.

The bad news: Based on
S&P Global
(SPGI) ESG scores updated in May, Tesla still scores way below average, lower than most auto makers and lower than
Chevron,
which was also added to the index.

Tesla scored 37 out of a possible 100. Chevron scored 43. S&P Global didn’t immediately respond to a request for comment about scores.

Tesla’s goal is to put the world on a path to a sustainable energy future. According to Tesla, that partly requires renewable power generation, battery storage technology, and electrified personal transportation. Tesla does all three of those things which is why it might surprise investors to learn a company with that mission scores just half of the average S&P Global ESG score of 72.

But E is one letter in ESG. Tesla does fairly well on that metric, scoring 60. That’s better than Chevron’s environmental score of 48. Still, Tesla’s E score lags behind the best auto maker, Volvo. It scores 85 on the environmental portion of the S&P ESG rating.

Volvo sold about 163,000 cars in the first quarter. About 29,000 were fully electric. Tesla is the world’s largest seller of all-electric vehicles. It sold 422,875 EVs in the quarter.

As for Chevron, social and governance scores is where the oil producer caught the EV maker. Chevron scored 42 and 40 on those two metrics, respectively. Tesla scored 20 and 34, respectively.

Disclosure practices might be part of Tesla’s problem. Tesla discloses less information than other companies, according to S&P Global. Scores are, at least partly, built using 61 industry specific questionnaires. “For companies that do not respond, a team of expert analysts fill the assessment questionnaires on their behalf using publicly available information,” reads part of S&P Global’s scoring methodology document.

S&P Global puts Tesla’s disclosure practices in the Medium category. It puts disclosure practices from cigarette maker
Philip Morris International
(PMI) in the Very High category. That might be one reason Philip Morris’ total ESG score is 84 and its E score is 87.

Tesla didn’t respond to a request for comment about its inclusion in the S&P 500 ESG Index or its ESG score. And CEO Elon Musk didn’t respond to a request for comment about recent scores.

In the past, he hasn’t held back when sharing his ESG thoughts. It’s “a scam,” Musk tweeted in May 2022. “It has been weaponized by phony social justice warriors.”

Tesla does produce an annual impact report that reviews environmental, product, and personnel matters. The 2022 report said the total cost of owning and operating a Model 3 is about the same as a
Toyota Motor
(TM) Corolla. Tesla has made EVs affordable. (Toyota’s ESG score is 45, topping Tesla.)

What’s more, 67% of Tesla employees are from underrepresented groups and the company added about 29,000 workers in 2022, bring its global employee count to almost 128,000.

The impact report might have some of the information needed for investors to debate whether or not Tesla deserves a higher total ESG score. At least investors don’t have to debate whither or not Tesla should be in the S&P 500 ESG Index. The company has made it that far.

Corrections & amplifications: S&P Global gave Tesla a governance score of 34. A previous version of this article incorrectly said Tesla’s governance score was 25. 

Write to Al Root at allen.root@dowjones.com

Read the full article here

News Room June 2, 2023 June 2, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Linda Yaccarino: Elon Musk’s X deputy who ‘tried to ride the tiger’

Linda Yaccarino insisted three weeks ago that little had changed when billionaire…

BCG earned more than $1mn for Gaza aid barge project

Boston Consulting Group was paid more than $1mn for work with a…

Manufacturers plead for US tariff clarity before copper stockpiles dwindle

Global manufacturing executives are begging for clarity on Donald Trump’s tariff policy…

Vietnam got an early trade deal with Donald Trump. Was it worth it?

For Thanh Cong Garment, a Vietnamese supplier to apparel companies including Adidas,…

‘Sell America’ trade and opportunities outside the US, Fed independence, Tesla earnings preview

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

Investing

Why Home Builders Are Bouncing Today—and Why Their Stocks Are Good Buys

By News Room
Investing

This Beaten-Down Industrial Stock Wants to Call America Home. Why It’s Time to Buy.

By News Room
Investing

These 8 Dividend Aristocrats Can Protect Your Portfolio in a Downturn

By News Room
Investing

Some Lenders Benefit From SBA’s Troubled Loan Program

By News Room
Investing

Social Security Is in Turmoil. Should You Lock In Benefits Now?

By News Room
Investing

Hims & Hers Stock Is Due for a Crash Diet. The GLP-1 Surge Is Fading Fast.

By News Room
Investing

Opinion: The stock-market selloff isn’t over yet. Here are 4 reasons why.

By News Room
Investing

With Trump’s tariffs paused, ‘Big Three’ automakers may race to build inventories

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?