Tesla

Tesla is an American multinational automotive and clean energy company that designs, manufactures, and sells electric vehicles, solar panels, and energy storage systems. It aims to accelerate the world's transition to sustainable energy.

Positive signals

Tesla aims to recycle around 80% of battery materials.

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Tesla generated $1.79 billion in carbon credit sales in 2023.

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In 2025, the NGO coalition Lead the Charge ranked Tesla first in its scorecard for efforts to eliminate fossil fuels from its supply chain, recognizing significant progress in addressing environmental impacts within its operations.

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Tesla's ESG Risk Rating by Sustainalytics (March 2025) provides a quantitative assessment of the company's exposure to material ESG risks and its management of those risks, offering transparency for investors and stakeholders.

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Concerns

Tesla's ESG score lags behind oil major Shell, with analysts highlighting that despite Tesla's environmental mission, its performance on social and governance dimensions is weaker, contributing to its lower overall ESG rating.

MEDIUM

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Tesla was removed from the S&P 500 ESG Index in 2022 due to falling into the bottom 25% of its global-industry peers on ESG metrics, with S&P citing deficiencies in internal low carbon strategy, codes of business conduct, and handling of social and governance issues.

HIGH

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In early 2022, S&P cited Tesla's lack of an internal low carbon strategy, insufficient codes of business conduct, allegations of racial discrimination and poor working conditions at its California factory, and poor handling of a federal investigation into deaths and injuries linked to its autopilot vehicles as reasons for its removal from the S&P 500 ESG Index.

CRITICAL

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Tesla

Positive signals

Tesla aims to recycle around 80% of battery materials.

Tesla generated $1.79 billion in carbon credit sales in 2023.

In 2025, the NGO coalition Lead the Charge ranked Tesla first in its scorecard for efforts to eliminate fossil fuels from its supply chain, recognizing significant progress in addressing environmental impacts within its operations.

Tesla's ESG Risk Rating by Sustainalytics (March 2025) provides a quantitative assessment of the company's exposure to material ESG risks and its management of those risks, offering transparency for investors and stakeholders.

Concerns

Tesla's ESG score lags behind oil major Shell, with analysts highlighting that despite Tesla's environmental mission, its performance on social and governance dimensions is weaker, contributing to its lower overall ESG rating.

Tesla was removed from the S&P 500 ESG Index in 2022 due to falling into the bottom 25% of its global-industry peers on ESG metrics, with S&P citing deficiencies in internal low carbon strategy, codes of business conduct, and handling of social and governance issues.

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