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Tesla the Troglodyte

Tesla the Troglodyte

Chris Campbell

Posted June 14, 2023

Chris Campbell

The news on June 1 created a stir.

Tesla found itself with a lower ESG score than Phillips Morris International, the company that makes Marlboro cigarettes.

According to S&P Global, Tesla was only worthy of 37 points, less than half of Morris’ 84.

Musk has responded. And in his usual fashion:

ALC

ESG, as you know, is the global social credit score for companies. Its stated purpose is to guide investors toward more ethical enterprises. 

Obviously, most people wouldn’t put tobacco high on their list of ethical enterprises. But the people who set the ESG scores aren’t most people.

But, you’re probably wondering: So what? Who cares about ESG scores?

Well, you might not care. But the big boys do.

"A bad ESG score announces to the world you're a troglodyte," says Todd Henderson, a professor of law and economics at the University of Chicago.

"That could be an invitation for socially conscious shareholders to seek board seats or oust a CEO."

Recall the ousting of Exxon board members in 2021 by BlackRock, State Street, and Vanguard. All due to their lack of commitment to ESG objectives.

To some industries, however -- like Big Tobacco -- ESG is a godsend.

I’ll explain as somewhat of an “insider.”

Confessions of a Former Chainsmoker

Confession: Over a decade ago, I worked for an international cigarette brand. (Not Morris.) I also smoked like a chimney. (Came with the territory.)

At the time, it was an industry under fire, and had been for a while. 

Anti-tobacco activists often reminded us of the dastardly effects the industry has on health and the environment.

Which, by the way, nobody at the company denied.

Big Tobacco just reframed and misdirected. They were the David Blaine of the advertising world.

That’s why, after decades of learning how to artfully dodge, Big Tobacco was well-primed for the game of ESG performance points.

Back in 2010, none of them were training on microaggressions, championing diversity targets, and the like. Now? It’s so common you might forget you’re selling cigarettes.

All of this contributes to a higher ESG score, you see. No surprise to see the tobacco industry has gone gung-ho.

But, here’s the thing…

Focusing on “woke” tobacco ignores the elephant in the room -- the one ESG proponents threw a rug over and hoped you didn’t notice.

Though I’m not fully convinced this is why Tesla’s ESG ratings are low…

Electric vehicles are indeed harmful to the environment.

Way more so than Big Tobacco.

Recently, our in-house tech expert interviewed a CEO who wants to change that.

And rather than looking to score ESG points, this company could actually change the world for the better. (And make you rich.)

From Troglodyte to Trailblazer

Fifty years ago, there was a burst of exploration in deep sea mining. 

In the 1970s, corporations like BP, Shell, Mitsubishi, Lockheed Martin -- they were all involved.

They began collecting these materials from the sea floor.

BUT…

At the time, nobody agreed who owned the oceans. So the United Nations stepped in and said, “Enough.”

Since then, regulations around who owns what in the oceans have become clearer. And a small public company has been granted three exploration licenses.

Recently, our colleague sat down for a private chat with the CEO of this little-known company.

He made one thing clear from the outset:

“There’s no such thing as zero impact. We’re not suggesting that this is perfect, but we can measure the impacts we’re having. It’s a no-brainer in our view [that this] is the answer.” 

If you want to see what impact terrestrial mining is having on local environments, he said, Google “Rainforest nickel in Indonesia.”

“If we can supply these important battery metals at a fraction of the environmental and human impact compared to the alternatives,” said the CEO, “it might slow down some of the terrible devastation that is happening in these Equatorial rainforests. And that is the priority.”

At the moment, this company’s stock is hovering around $1.

Few know about it.

Even fewer know about the catalyst coming down the pike -- a change in international law that will soon go into effect -- that could send its stock soaring.

Tomorrow, our experts are holding an event to tell you all about it.

This is unlike ANY event we’ve held in the past…

It’s happening at 7PM EST.

If you haven’t yet…

Click here to reserve your (virtual) seat before time’s up.

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