SpaceX Earns Lowest Corporate Responsibility Rating—Here’s What That Means
Key takeaways
- A CCC rating is awarded to companies that have “very poor management measures” that may be in or were recently involved in “significant” ESG controversies, according to MSCI.
- MSCI awarded SpaceX a 3.2 out of 10 on governance, a metric on which companies start at a perfect 10 and lose points for what MSCI describes as “corporate governance flags.”
- SpaceX did not immediately respond to Forbes’ request for comment, but Musk responded to the ESG score on X, writing, “Unfortunately, electric rockets are impossible.”
Topline Index provider MSCI awarded Space X the lowest possible environmental, social and governance (ESG) rating, ranking Elon Musk’s rocket maker at the same score as Russia while flagging concerns the firm has failed to manage “significant” risks following its record-setting debut earlier this month.
Elon Musk has claimed the ratings are “weaponized by phony social justice warriors.” Getty Images Key Facts MSCI, one of the world’s largest stock market index providers, awarded Space X a CCC rating a day before its June 11 initial public offering, the lowest on MSCI’s seven-tier sustainability scale, saying the company was “lagging its industry” because of its exposure to and management of “significant” environmental, social and governance risks, the Financial Times reported.
A CCC rating is awarded to companies that have “very poor management measures” that may be in or were recently involved in “significant” ESG controversies, according to MSCI.