According to Yonhap News, the Financial Times reported on June 21 that SpaceX was assigned a 'CCC' rating by MSCI on June 11, ahead of its $75 billion IPO. This rating is the same one given to Russia following its invasion of Ukraine in 2022.
MSCI's ESG evaluation divides the assessment into three categories—environmental (E), social (S), and governance (G)—and rates companies on a scale from AAA to CCC based on their risk exposure and management. The assets tracking MSCI's ESG indices total approximately $12.7 trillion, indicating significant market influence.
MSCI noted that "SpaceX is lagging in the industry due to high risk exposure and significant failures in ESG risk management."
Market analysts suggest that SpaceX's weak governance structure is a major factor in its low rating. The company's dual-class voting structure, which concentrates 85.1% of voting rights in Musk's hands, along with limitations on shareholder lawsuits and a lack of board independence, have been consistently criticized.
In MSCI's 'controversy' assessment, which evaluates a company's involvement in controversies, SpaceX scored just 1 out of 10, receiving an 'orange flag' designation. This rating indicates that the company is directly or indirectly involved in ongoing serious controversies.
This is not the first instance of tension between Musk's companies and major ESG rating agencies. In 2022, Tesla was removed from the S&P 500 ESG index due to allegations of racial discrimination and a lack of transparency regarding its low-carbon strategy.
* This article has been translated by AI.
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