SpaceX and ESG: Reflections on a “scam”

On June 12, SpaceX went public. In the past, its CEO, Elon Musk—who also controls Tesla—had described environmental, social, and governance (ESG) criteria as “a scam weaponized by phony social justice warriors.” Now that the company’s shares are publicly traded, it’s tempting to wonder how SpaceX is perceived in the world of responsible investment and ESG screening.

Let’s start with rating agencies and analysts specializing in sustainability. MSCI was the first major agency to act, assigning SpaceX the lowest possible rating in June, with a particularly low score on governance and a high level of controversy. Another major player in non-financial ratings, Morningstar Sustainalytics, also placed the company in the “severe” risk category. According to Sustainalytics, the company’s mix of activities—including satellite connectivity, rocket launches, national security, artificial intelligence, and social media via X—exposes it to a plethora of ESG risks. More…

Source: illuminem