HomeResearch & Knowledgeback to HomeFinanceback to Research & KnowledgeFinancing change, changing finance: Should Triodos invest in Tesla?back to Finance

Case Study

Financing change, changing finance: Should Triodos invest in Tesla?

By Vanina Farber and María Helena Jaén

12 pages

December 2020

Order this case study

Reference: IMD-7-2238

In 2020, Triodos Investment Management had approximately EUR 4.9 billion in assets under its management (impact investment). Triodos motto was “Financing for change. Change Finance” and understood sustainable finance as a driving force in the transition to a more inclusive and sustainable world. Triodos took a comprehensive view of the companies following the “4P” approach: Product, People, Process, and Planet. Tesla, a clean energy company that produced electric cars, batteries and renewable energy generation, could be part of Triodos’s investment. Henk Jonker, Triodos´s Senior Investment Analyst needed to evaluate Tesla’s inclusion in the investment universe. He decided to pose the challenge to Clarissa Diaz, a high potential Triodos’ researcher. Having in mind Tesla´s mission, “to accelerate the world’s transition to sustainable energy,” Diaz had to evaluate Tesla´s impact on people and planet. She must review the ESG data along with a financial analysis of the company. Diaz was aware that Elon Musk was a visionary promising to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy. Still, she was aware that Tesla and Musk were publicly involved in governance, labour, and human rights controversies. Diaz had to weigh the ESG controversial issues that merited the exclusion of Tesla. The case challenges the students to evaluate a company that do not fully meet all ESG standards and to reflect on the responsible leadership role of financial institutions.

Learning Objective

Recognize the role played by financial institutions to build a more sustainable society.
Describe different ESG investment methodologies.
Evaluate how to integrate ESG factors in portfolio investment decisions.
Implement the ESG integration´s process in an investment decision.
Value a company using a market multiples valuation method and critically reflect on the values-based and responsible leadership role of financial institutions.

Keywords

Finance, Sustainability, Equity, Inclusion, Diversity

Settings

Europe, Netherlands
Triodos Bank, Finance and Insurance, Banking

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study

Keep reading

Podcast

Banking’s biggest digital shift - Ralph Hamers - IbyIMD

Ralph Hamers on leading banking’s biggest digital shift: why banks must be tech-forward and how AI could redefine financial advice.

Finance Innovation Leadership Strategy

By Murat Tarakci

in I by IMD

Article

Beyond visibility: What the inclusion metrics miss

Advance inclusion metrics beyond visibility. Learn to distinguish genuine belonging from everyday self-editing and translation effects.

Culture Diversity and Equity and Inclusion Leadership

By Robert Vilkelis

in I by IMD

Article

Six strategies to navigate charged DE&I discussions

Learn how leaders can manage difficult DE&I conversations effectively with six practical strategies to foster understanding and progress.

Diversity and Equity and Inclusion

By Vanina Farber

in I by IMD

Article

Beating the D&I backlash with strategic cohesion

Learn how leaders can beat the D&I backlash by building strategic cohesion, avoiding performative inclusion and driving business performance.

Diversity and Equity and Inclusion

By Luca Condosta

in I by IMD

Video

Rethinking Sustainability: Why Customer Value Comes First

Discover why customer value, not sustainability alone, drives purchasing decisions and how businesses can scale sustainable innovation.

Strategy Sustainability

By Karl Schmedders

in I by IMD

Article

Reversing the flow - Tarkett Collaboration

Tarkett is accelerating circular flooring by using radical cross-industry collaboration and ecosystem partnerships to make material reuse viable at scale.

Sustainability

By Julia Binder and Manuel Braun

in I by IMD

Article

Banks must respond strategically to these six shifts

The six powerful shifts affecting a bank’s ability to operate in the future and why bank leaders cannot afford to ignore them

Finance

By Salvatore Cantale

in I by IMD

Article

Global banks are becoming too large for states to rescue

Switzerland has reached an uncomfortable conclusion: that UBS has become too large for the state to comfortably stand behind. The government’s plan to force the bank to hold roughly $20 billion more in capital is an attempt to close that gap, even...

Competitiveness Finance

By Arturo Bris

in The National

16 May 2026