ESG is not enough to create a better world

The ESG framework was meant to address the planet’s existential challenges. On that score it has fallen far short of its aims. PHOTO: ST FILE
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In May 2022, Tesla chief executive officer Elon Musk famously sent out a tweet that reverberated across the globe, declaring “ESG is a scam”, following the company’s removal from the Standard & Poor’s (S&P) 500 ESG Index, while ExxonMobil remained on the list.

The decision to exclude Tesla, S&P subsequently clarified, was based on the company’s perceived lack of a low-carbon strategy, compared with its peers, as well as reported instances of racial discrimination and poor working conditions at a Tesla factory.

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