Elon Musk, last week calling ESG a “scam” via his Twitter account, was irresponsible.
What do you make of his comment?
I have no care for his personal beef with the S&P 500 ESG index which relegated his Tesla business from its index, and triggered his response.
The index provider cited concerns related to working conditions and Tesla'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 Musk's company.
The S&P 500 ESG Index is a broad-based, market-cap-weighted index that is designed to measure the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the S&P 500.
I’ve gone on record to say that the destination is important. Not the route.
ESG is the path.
Do not lose faith, or question the purpose of ESG because of one influential man’s comment.
ESG, in particular the ‘Social’ aspect which pertains to Supplier Diversity, is merely a vehicle to get us to a point in society where Equality is the outcome of providing Equity to those who are marginalised by society.