ESG Investing Stocks may not be what you think.
I say this because an awful lot of people still equate ESG with some kind of weird “woke capitalism.” Which, of course, is absurd.
ESG simply stands for environmental, social, and governance. These are essentially three factors that fiduciaries consider when screening potential investment opportunities.
It has nothing to do with wokeness or the radical left. In fact, I would argue that one of the greatest ESG investing stocks is Tesla (NASDAQ: TSLA). And the CEO of that company is anything but woke or part of the radical left.
But the truth is, TSLA actually checks off all the ESG boxes.
Let’s break it down…
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Why Tesla is the most successful ESG Investing Stocks of all time
Let’s first consider the “environmental” part of ESG.
This focuses on either the environmental impact of a particular company, or how that company considers environmental hazards that could negatively affect the value of the stock. So we could be talking about anything from pollution, resource management and carbon mitigation or adaptation.
In the case of Tesla, there’s the obvious: electric vehicles simply come with a lower environmental burden than internal combustion vehicles.
And this isn’t the opinion of a bunch of treehuggers or Greenpeace. This is based on sound analysis from engineers, scientists, and even investment analysts that don’t rely on opinion and conjecture to make their calls. In fact, their very livelihood depends on staying objective.
Take Bloomberg analysts, for instance, which were very clear in their 2024 EV report where they showed their data that indicated EVs have a lower lifecycle emissions than gas-powered cars.
Indeed, electric vehicles only exist today on a mass scale because of Elon Musk and Tesla. And they’ve already begun to massively reduce nitrogen oxide emissions and particulate matter from the air.
Tesla has also been able to directly profit from the sale of its carbon credits to other automakers that need those credits to meet their emission regulations.
While I’m no fan of regulations, I sure as hell wouldn’t ignore the opportunity to profit from them. And neither does Tesla. By considering these carbon credits as a source of revenue, Tesla has found a way to increase its value by paying attention to a very profitable environmental influencer. Since 2009, Tesla has earned about $10 billion by selling those carbon credits. This, my friend, is not an act of “woke capitalism.” It’s an act of genius.
Now let’s consider the “social” part of ESG.
The social component of ESG focuses on things like workplace safety, rejecting slave labor and just really respecting human rights.
It’s not uncommon for some folks to attack Tesla on the "blood mining" front. But Tesla actually maps every inch of its supply chain. Management knows exactly where its metals and materials come from. And its direct suppliers are required to undergo third-part audits to ensure the complete absence of child labor and unauthorized sources.
In terms of its own employees, Tesla has proved to be an attractive opportunity for a lot of folks, too.
The company not only offers fair wages and safe working environments, but it also offers health programs that provide no-cost paycheck contributions for medical, dental and vision plan options for employees and family members. As well, Tesla offers:
- Employer-paid life insurance
- Short-and long-term disability
- Confidential counseling for employees and their families
Tesla employees can also access student loan and debt consolidation services, transportation subsidies, $0 cost shuttles, backup childcare, discount programs and tools and resources to support growing families.
Tesla has also been at the forefront of disaster relief operations around the world. Mostly by restoring power during crises by deploying its mobile powerwall energy storage units (MPUs).
Here are a few examples:
- In Maui, Tesla supported wildfire relief efforts with two direct zero-cost loans of MPUs. The company also provided technical support to NGO partners and certified installers for the rapid build and deployments to relief camps.
- In Florida, after Hurricane Ida, Tesla deployed an MPU to power a relief center.
- The company pre-positioned five MPUs in Puerto Rico with a partner organization for crucial fire stations that support operations for most of the year.
- And in Australia, Tesla deployed two MPUs to community centers in New South Wales after loss of power that resulted from unprecedented flooding.
And most recently, the company donated a fleet of Cybertrucks to serve as battery banks in California, where wildfires essentially burned everything to the ground. Tesla also provided WiFi through Starlink.
And finally, there’s the “governance” component of ESG.
This is really about transparency, leadership accountability and anti-bribery and corruption indicators.
To date, there has been no evidence to suggest that Tesla has been involved in any kind of bribery or corruption activities. And the Board of Directors (Bod) has provided a more than acceptable level of transparency for shareholders. The company’s BoD has even made it a priority to oversee any risks related to ESG issues, both at the full-board and committee levels.
Tesla considers ESG risks as part of its overall enterprise risk management. This includes…
- Risks relating to climate
- Data privacy
- Cybersecurity
- Human rights and supply chain issues
Tesla’s audit committee also oversees the company’s Impact Report and other ESG-related disclosures.
It’s funny, but there are a lot of people who would accuse any company of adhering to ESG standards as being a bad investment. But had you bought $5,000 worth of Tesla when it first went public, you’d now be sitting on more than $1.6 million.
Tesla is arguably the number one ESG stock. And it’s also one of the most successful stocks anyone has ever had the opportunity to own.
Of course, the big money on Tesla has already been made. And I maintain that the stock will continue to grow for years to come, but if you’re looking for bang for your buck, consider this bitcoin loophole strategy I keep telling you about.
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I’m not saying this is necessarily an ESG play. But you can sure as hell make a boatload of cash. And really, that’s why we’re all here. To make the most amount of money in the shortest amount of time.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is an editor of Energy and Capital as well as a contributing analyst for New World Assets.
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