Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • 35% of Workplace Injuries Occur During First Year
  • Woman Claims Firing Due to ‘Long-Covid’
  • News
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
    • East
    • Midwest
    • South Central
    • Southeast
    • West
    • Subscribe
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Insurance Twitter
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Tesla, Echoing Musk, Says ESG Metrics Are ‘Fundamentally Flawed’

By Saijel Kishan | May 9, 2022
Email This Subscribe to Newsletter
Email to a friend Facebook Tweet LinkedIn Print Article
  • Article
  • 0 Comments

Tesla Inc., whose Chief Executive Officer Elon Musk has criticized ESG for making little sense, said current ways of measuring environmental, social and governance issues are “fundamentally flawed.”

In a 144-page annual report, the electric vehicle-maker said ESG ratings are based on how corporate profits are affected by ESG-related factors, rather than gauging a company’s real-world impact on society and the environment. The ratings are used by money managers to help decide where to invest.

In effect, individual investors who park their money in ESG funds managed by large asset managers are unaware that their capital is being used to buy shares of companies that are exacerbating the effects of climate change, rather than mitigating it, Tesla said.

“We need to create a system that measures and scrutinizes actual positive impact on our planet, so unsuspecting individual investors can choose to support companies that can make and prioritize positive change,” the Austin, Texas-based company said. It added that large investors, ratings agencies, companies and the public need to push for change.

Musk has been a recent critic of ESG, and has said its investment principles should be “deleted if not fixed.”

I am increasingly convinced that corporate ESG is the Devil Incarnate

— Elon Musk (@elonmusk) April 3, 2022

In its report, Tesla cited how automakers may see their ESG ratings increase even though they are only slightly reducing their greenhouse gas emissions, while continuing to produce vehicles that burn fossil fuels. Most emissions from vehicles are produced when customers drive them and that data tends to be misreported, not reported at all or based on “unrealistic assumptions,” Tesla said.

Photo: Tesla Inc. electric vehicles charge at the Tesla Supercharger station in Fremont, California, U.S./Bloomberg

Copyright 2022 Bloomberg.

Topics Tesla

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Where’s the Beef? McDonald’s, Wendy’s Are Sued Over Burger Sizes
Republicans Have a New Enemy No. 1: ESG Investing
How Sunken Boat Insurance Claim Factors Into Vermont Murder Case
Hacker Shows Off a Way to Unlock Tesla Models, Start Cars

The most important insurance news,
in your inbox every business day.

Get the insurance industry's trusted newsletter

Email This Subscribe to Newsletter
Email to a friend Facebook Tweet LinkedIn Print Article
  • Categories: National NewsTopics: Elon Musk, environmental social and governance (ESG) criteria, ESG, Tesla
  • Have a hot lead? Email us at newsdesk@insurancejournal.com

Add a CommentSee All Comments (0)Add a Comment Cancel reply

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

*

*

More News
Insurance Technology: Zurich’s FieldView Simplifies Crop Reporting; Kinetic Adds ‘Jump Detection’ to Wearables; Beat Capital to Launch MGAs Using OneShield
Arson Probe After 14 Homes Being Built in Arizona Destroyed
Hawaii Hurricane Season Forecasted to be Slow With La Nina
Republicans Have a New Enemy No. 1: ESG Investing
More News Features

Read This Next

  • Tesla, Echoing Musk, Says ESG Metrics Are 'Fundamentally Flawed'
  • 'Borat' Actor Cohen Drops $9M Suit Against Cannabis Company Over Billboard
  • Businesses See Cyber Attacks as Biggest Threat - Ahead of Pandemic, Economy: Survey
  • FedNat to Cancel 56,000 Policies Under Restructuring Plan; Monarch Finds Investor
  • Energy Firms Lose Challenge to Remand of Baltimore Climate Suit to State Court

Insurance Jobs

  • Head of Executive Recruiting - Northbrook, IL
  • Senior Analyst, Investment Consulting - Chicago, IL
  • Commercial Unrepresented Adjuster (B1) (Remote/Home-Based Worker) - Northbrook, IL
  • Intermediate Analyst – Leveraged Loans/CLOs - Chicago, IL
  • Personal Lines Underwriter – Insurance Carrier – 100% REMOTE - San Francisco, CA
MyNewMarkets
  • Employers Adapting to New World of Worries
  • Drones in Agriculture and More
  • On the Water: Boats & Risk
  • Reimagining Restaurants and Risk
  • Inflation Outpacing Premium Increases for Auto and Homeowners Lines
Claims Journal
  • Florida Appeals Court Slashes $600,000 Attorney Fee on $52,000 Claim
  • Claims Business: Sedgwick, CoreLogic, Davies
  • Biden Warns of 'Another Tough Hurricane Season' This Year
  • Park Outdoors: Ford Recalls SUVs Due to Engine Fire Risk
  • Hawaii Hurricane Season Forecasted to Be Slow With La Nina
Academy of Insurance education
  • May 26 CGL Master Class - Who is an Insured and Why Do You Care?
  • May 31 How to Hire and Develop New Producers (2-part series)
  • June 7 Insurance 101 for Defense Lawyers
  • June 9 Commercial Property Master Class - COPE - (Protection & Exposure)

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2022 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map