ESG stocks are trending after EV leader Tesla (Nasdaq: TSLA) lost its position in the S&P 500 ESG Index (EFIV). The index is a group of top ESG stocks to buy based on certain criteria.
ESG is an investing strategy that considers more than company profits, such as social and environmental issues. Though many people associate ESG with just the environment, it includes more than that. With this in mind, ESG stands for
- Environmental
- Social
- Governance
After its removal from the ESG index, Tesla CEO Elon Musk took to Twitter to express his frustration, calling ESG a scam. Do you agree with the move? Certainly, Tesla is working towards a more sustainable future, right?
Find out why Tesla was booted from the index and if the company is still one of the best ESG stocks to buy now below.
Is Tesla an ESG Stock?
To answer the question on everyone’s mind, yes, Tesla is still an ESG stock. The company single-handedly changed the auto industry, with automakers pouring funds to develop their own EV models.
That being said, Tesla falls short in other areas that matter to the overall score, according to North American Head of ESG Investing Margaret Dorn. For example, Dorn mentions:
- Tesla’s lack of low carbon strategy and,
- Codes of business conduct.
Furthermore, the blog post mentions Tesla’s Media and Stakeholder Analysis slipped with several events reducing its score. In particular, the company’s handling of injuries linked to autopilot mode…
