“The batteries in electric cars like the ones Tesla manufactures require cobalt, a mineral found in abundance in the Democratic Republic of Congo (DRC). While electric vehicles are important in the effort to combat climate change, there are credible reports of serious human rights violations at informal cobalt mines in the DRC, including widespread exploitation of child labor and safety hazards in deep, unstable tunnels…
Does Tesla deserve to be treated as an ESG champion?
[COMMENTARY]One of the top holdings of most ESG-sustainable funds is Tesla. Renewable energy requirements are growing massively for copper, cobalt, silver, etc. They require numerous new mines to satisfy such demand — and often from questionable jurisdictions. Are ESG-sustainable funds and investors in their excitement for such companies like Tesla overlooking the additional climate impacts of renewable energy? Should renewable energy-based companies, therefore, be given such high valuations?
ESG Investing Needs More Rigorous Standards To Evaluate Corporate Conduct, by Michael Posner, February 1, 2022, Forbes, USA.