Elon Musk\u2019s SpaceX was given a triple C rating in environmental, social and governance (ESG) by index provider MSCI prior to its initial public offering, the Financial Times has reported.<\/p>\n
This is its lowest possible rating, putting it on par with the score awarded to Russian state after its invasion of Ukraine in 2022. SpaceX\u2019s triple C rating means it is a laggard, with \u201chigh exposure and failure to manage significant sustainability risks\u201d, according to MSCI.<\/p>\n
The FT reported that the rating was issued on June 11, following investor and analyst concerns over its governance standards. <\/p>\n
The company also scored one out of 10 and was given an orange flag in MSCI\u2019s \u201ccontroversies\u201d category. According to the paper, this score is only given if a company is deemed to be indirectly involved in one or more ongoing, very severe controversies, or directly involved in one or more ongoing severe ones.<\/p>\n
SpaceX shares had fallen by nine per cent at time of writing, marking its third consecutive day of losses, although its price is still higher than when it initially floated<\/a>.<\/p>\n This is not the first time a Musk-owned company has come under scrutiny during an ESG assessment. In 2022, electric vehicle company Tesla was dropped from the S&P 500 ESG Index over concerns including racial discrimination and a lack of details on its low-carbon strategy. At the time, Musk described ESG as a \u201cscam [\u2026] weaponised by phoney social justice warriors\u201d.<\/p>\n On Monday, SpaceX also signed a major computing power deal with open-source AI startup Reflection, CNBC reported. Under the deal, Musk\u2019s company will lease a portion of its Colossus data centre to Reflection for $150 million per month, beginning in July and running until 2029, totalling $6.3 in revenue if it runs to the end of its term. <\/p>\n