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Not every company is eager to talk about ESG (Environmental, Social, and Governance) evaluations. In fact, in the auto industry, it seems more common to ignore them than highlight them. It’s hard to be doing well from an environmental perspective, a social perspective, and a governance perspective when you’re in the world of producing automobiles as cheaply as possible. However, NIO has dedicated itself to doing better on this front, and it recently got a boost in its ESG rating.
“Recently, MSCI, a leading international index provider, released its latest ESG rating results, upgrading NIO’s rating from A to AA, positioning the company in the top tier of the global automotive industry. This milestone underscores NIO’s exceptional sustainability efforts and reflects the high recognition of its long-term investment value and sustainable practices by international authorities,” the company writes.
“The MSCI ESG rating is one of the most well-known ESG evaluation systems globally, and its results are widely used by investors in their decision-making. MSCI’s ESG ratings are divided into seven levels, ranging from CCC to AAA, with the AA rating indicating that a company is a leader among its global peers. According to MSCI’s rating report, NIO has demonstrated outstanding performance in areas such as product carbon footprint, clean technology opportunities, and corporate behavior.”
Outstanding progress and corporate responsibility from NIO. One might cynically say NIO just checked some boxes and is patting itself on the back too exuberantly. However, you can’t easily steal a AA rating from MSCI. This takes serious work within the company. It seems NIO is doing the good work of being a responsible, sustainably oriented corporation. In the light of the allegations and scandal with BYD in Brazil, that’s all the more important today.
“As an industry-leading smart EV company with the mission of ‘Blue Sky Coming — Shaping a Sustainable and Brighter Future Together,’ NIO is dedicated to advancing its sustainable value system. This upgrade to an AA rating is not only an acknowledgment of NIO’s ESG performance from the perspective of the international capital markets, but also a recognition of the company’s underlying sustainable development philosophy and practices. NIO will continue to strengthen its ESG management and contribute further to global sustainable development,” the Chinese smart EV company adds.
Not to put NIO’s achievement in negative lighting, we should acknowledge that there’s still improvement to be made, and NIO’s most similar competitor and compatriot in the industry is still a step above NIO on this matter. Two months ago, I reported that XPENG was awarded a stunning AAA ESG rating from MSCI. I do wonder if that news didn’t light a little flame under NIO’s bum and get it to work hard to get this upgrade to AA. I also have to think that the company is already toiling away to try to climb up to that AAA rating. In any case, though, both young EV companies are well ahead of the pack on this and deserve the recognition and praise they’re getting for it.
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