Fund firms defend Tesla holdings following ousting from S&P ESG index

'Perennial ESG paradox'

Lauren Mason
clock • 3 min read
Util's Elisabeth Steyn described Tesla as the “perennial ESG paradox”

Util's Elisabeth Steyn described Tesla as the “perennial ESG paradox”

Asset managers with large weightings to Tesla in their portfolios have defended their decision to hold the stock, following news yesterday that it was booted out of the S&P ESG index.

In a blog post published on 17 May, S&P head of ESG indices for North America Margaret Dorn said Tesla was "ineligible for index inclusion" in its fourth rebalance, citing concerns relating to Tesla's working conditions, the handling of an investigation into deaths and injuries linked to its driver-assistance systems, a lack of low-carbon strategy and codes of business conduct. According to data from FE fundinfo, a total of 145 funds in the Investment Association universe hold Tesla as one of their ten largest weightings, with the likes of PGIM Jennison Global Equity Opportunities, Capit...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on ESG

The Sustainable Investment Festival will take place from 11-12 July

Sustainable Investment Festival 2022: Less than two weeks to go!

In-person event takes place 11-12 July

Beth Brearley
clock 29 June 2022 • 2 min read
London Climate Action Week: The most practical solutions

London Climate Action Week: The most practical solutions

What are managers doing?

Investment Week
clock 27 June 2022 • 1 min read
Kimberley Lewis, head of active ownership at Schroders

Schroders: Why we are against Sainsbury's being forced to become Living Wage-accredited

AGM on 7 July

Kimberley Lewis
clock 27 June 2022 • 4 min read