Investing usually uses a combination of head, heart and gut even if it’s not supposed to. And perhaps no market theme stirs “all the feels” quite like ESG.
This week, a major move to cut Tesla from a closely followed environmental, social and governance (ESG) index brought anger and relief in nearly equal measure.
Defiance was on display from Standard & Poor’s, which rejected Tesla from its ESG index; annoyance emerged from Tesla
TSLA,
investors, including well-known asset manager and Tesla bull Cathie Wood. There was also a seething snapback from Elon Musk.
Sustainable Investing: Today’s widely adopted ESG ratings and net-zero pledges are mostly worthless, two pioneers of sustainable investing say
Mostly, a fresh wave of confusion emerged about what constitutes “ESG” if what many see as the anti-gasoline renegade no longer gets its due.
The S&P 500 ESG Index dropped Musk’s Tesla from the lineup as part of its annual rebalancing. But, in large part because it’s also supposed to track the broader S&P 500
SPX,
although while adding an ESG layer, the index kept oil giant ExxonMobil
XOM,
in its top ESG mix. Also included: JPMorgan Chase & Co.
JPM,
which has been dinged by environmental groups as chief lender to the oil patch.
“ESG is a scam. It has been weaponized by phony social justice warriors,” tweeted Musk, lamenting…
