The world’s most famous EV maker has lost its spot on the ESG version of the S&P 500 Index.
S&P Dow Jones Indices says that Tesla Inc.’s score on environmental, social and governance standards has remained “fairly stable” over the past year, but that it has slipped down the ranks against improving global peers.
The index provider also cited concerns related to working conditions and the firm’s handling of an investigation into deaths and injuries linked to its driver-assistance systems. A lack of low-carbon strategy and codes of business conduct also counted against Elon Musk’s company, it said.
“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, senior director and head of ESG indices for S&P Dow Jones in North America, said in a Tuesday blog post.
Tesla didn’t immediately respond to an emailed request for comment, though writing on Twitter on Wednesday Musk described ESG as a “scam.”