Why Elon Musk’s ESG Backlash Sparked a Nationwide Debate

When Tesla, the world’s leading maker of electric vehicles, was dropped last week from S&P’s ESG Index—which assesses companies’ sustainability efforts and corporate culture—it infuriated Tesla’s CEO Elon Musk, who immediately took to Twitter to call ESG a “scam” that is “weaponized by phony social justice warriors.”

In its defense, S&P clarified that Tesla’s lack of published details related to its “low carbon strategy” or “codes of business conduct” contributed to its departure from the index and even though Tesla’s products help reduce overall carbon emissions, the company has faulted for claims of racial discrimination and poor working conditions.