Tesla Inc TSLA is among a list of companies that have been criticized by some big institutional investors for failing to disclose their environmental footprints through global reporting standards, Bloomberg News reported.
What Happened: Some institutional investors including Amundi SA, Aviva Plc, and Nuveen — with over $31 trillion in assets — have called on Elon Musk-led Tesla, energy giants Saudi Aramco, Exxon Mobil Corp XOM, as well as Glencore Plc, Volvo Group, and others to report climate, water and forest impacts through CDP.
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UK-based CDP is a nonprofit that helps companies and cities disclose their environmental impact and whose disclosure system is used by more than 13,000 companies.
“Climate change, deforestation and water security present material risks to investments,” the report said.
“Companies that are failing to disclose their impact risk trailing behind their competitors in their access to capital.”
See Also: ‘Ridiculous,’ ‘Wacktivism:’ Cathie Wood, Elon Musk React To Tesla’s Removal From S&P 500 ESG Index
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Why It Matters: Asset managers have been stepping up pressure on the companies in their portfolios to use consistent reporting metrics for ESG goals as they attempt to get clarity and steer clear of potential greenwashing.
The development also follows growing regulatory scrutiny of the industry, stricter rules to cut greenhouse gas emissions, and Musk’s recent criticism of the ESG industry.
The world’s richest man last month called the ESG ratings a “scam” and “a clear case of wacktivism” after Tesla lost its spot on the ESG Index, pointing out that Exxon is “rated among the top ten” in the world for ESG by S&P 500.
Price Action: Tesla closed 5% lower at $697.9 on Tuesday, according to data from Benzinga Pro.
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