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Sustainability learning exercise

Brain Circuits

Tesla: Exclude, engage or just invest?

IbyIMD+ Published 24 March 2021 in Brain Circuits • 3 min read

With a mission “to accelerate the world’s transition to sustainable energy,” Tesla should be a shoe-in for investors with environmental, social and governance (ESG) concerns. Yet, with controversial corporate practices related to ESG factors, the investment decision for responsible/sustainable investors is not so straightforward.

Despite lofty goals that could revolutionize the automobile industry with an inherently “good” product – making zero-emission electric vehicles mainstream, Tesla investors also have to consider their material ESG issues in their corporate practices and policies.

Put yourself in the shoes of an ESG investor. What are the most important material factors for you? (choose three per criteria)

  • Tesla would expedite the move from a mine-and-burn hydrocarbon economy toward a clean electric economy.
  • Tesla’s mission to accelerate the world’s transition to sustainable energy is aligned with Triodos’s transition themes.
  • Elon Musk is a true visionary and pioneer in the clean energy field.
  • Tesla and Musk, himself, are publicly involved in governance, labor and human rights controversies.
  • Elon Musk’s remuneration package is excessive.
  • Elon Musk social media activity affects firm’s value
  • Tesla’s IPO was on June 29, 2010. Its stock has grown exponentially since the IPO.
  • Contract workers at Tesla sign arbitration agreements that could hide labor relations abuses even sexual harassment.
  • Since 2014, workers have filed 145 complaints with California’s Department of Fair Employment and Housing, alleging discrimination at Tesla on the basis of race, age,…
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