Finance
Tesla, Echoing Musk, Says ESG Metrics Are ‘Fundamentally Flawed’
- Electric-vehicle maker says ESG needs to measure global impact
- Musk has said ESG ratings should be ‘deleted if not fixed’
A Tesla Supercharger station in Fremont, California.
Photographer: Nina Riggio/BloombergThis article is for subscribers only.
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.