and Saudi Aramco all have in common? Investors are unhappy with their level of environmental disclosures, according to one firm.
On Wednesday, CDP, a nonprofit global environmental-disclosure system for investors, called out more than 1,400 companies for not disclosing enough about how their operations affect the environment. CDP works with more than 680 investors managing over $130 trillion in assets.
(ticker: TSLA) made the list. So did
Mobil (XOM) and the Saudi Arabian Oil Company (known commonly as Saudi Aramco), along with
(GLEN. London) and others. Tesla didn’t respond to a request for comment.
The grouping might feel odd. Tesla CEO Elon Musk says the EV pioneer’s mission is to help put the world on a path to a sustainable energy future. That includes electric vehicles and renewable power generation. It doesn’t include oil.
That mission would seem to give Tesla some environmental credibility, but Tesla doesn’t talk much to outside organizations. That seems to be the big issue for CDP, and for other groups as well.
In May, Tesla was tossed out of the
ESG Index. S&P Dow Jones Indices told Barron’s at the time the issue was partly a lack of disclosure. Exxon, by that score, is doing better than Tesla. Exxon is included in the S&P 500 ESG Index along with
Musk wasn’t happy with the decision, calling ESG “a scam” in a tweet.
Tesla does publish an annual impact report that includes environmental data. In its 2021 report, Tesla said its vehicles and solar panels remove 8.4 million metric tons of annual carbon emissions.
The environmental section of the 2021 report is about 20 pages long, while other environmental details are scattered throughout the report.
The environmental section starts with “the biggest environmental impact is achieved through early displacement of ICE vehicles and replacing them with EVs.” ICE is short for internal combustion engines. It goes on to say that Tesla wants “to displace fossil-based energy generation with renewable energy generation.”
The report also deals with some of Tesla’s manufacturing environmental footprint, noting it uses solar panels to generate electricity as well as artificial intelligence to make operations more efficient.
As for carbon emissions, Tesla’s so-called scope one emissions amounted to about 185,000 metric tons of carbon dioxide. Scope one emissions are emissions coming from sources owned and controlled by a company.
CDP, however, appears to want additional disclosures provided directly into its database. ” Tesla does not disclose information to CDP at all – hence the “F” for “failure to disclose.” said a CDP spokeswoman. “Tesla has been requested to disclose to CDP’s climate change questionnaire since 2012 and we are still hoping they will disclose.”
Not interfacing with some external organizations might not come as a shock to Tesla investors. The company doesn’t spend money on conventional advertising, and it lacks a formal public relations effort.
Tesla stock fell 2.6% in recent trading Wednesday. The S&P 500 was up 0.1%, while the
Dow Jones Industrial Average
was up 0.4%.
Write to Al Root at email@example.com