Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management, Reducing Carbon
• Quality Management –Product Safety
• Employee Workplace Safety
• Employee Attraction, Retention, Development
• Ethical Business Conduct, Integrity, Transparency
• Data Protection, Cybersecurity
• Supply Chain Management, Sustainable Materials/Products
• Customer Satisfaction, Trust and Loyalty
• Company Brand and Mission
• Employee Health and Wellness
• Company’s Intellectual Property, Innovation, R&D
• Renewable Energy
• Waste Management/Recycling
• Company Financial Health ( Product Sold, Profitability)
• Employee Compensation and Benefits
• Air Quality, Reducing Toxic Emissions
• New Markets, EV, Autonomous Cars
• Labor Relations
• Water Management
• Diversity, Equity and Inclusion
• Climate Change and Risk Management
• Biodiversity Preservation, Natural Resource Conservation
• Human Trafficking, Forced Labor
• Critical Events, Disaster Relief, Pandemic
• Community Engagement, Economic Development

Environmental Achievements

• Global fleet of Tesla vehicles, energy storage and solar panels enabled customers to avoid emitting 8.4 million metric tons of CO2e in 2021.
• Tesla solar panels generated more electricity than consumed by vehicles and factories between 2012 and 2021.
• 100% renewable Supercharger network in 2021 (achieved through onsite resources and annual renewable matching).
• All home charging in California was 100% renewable through annual renewable matching in 2021.

Social Achievements

• Created nearly 100,000 direct new jobs in a decade.
• Received 3,000,000 job applications in 2021.
• Improved employee satisfaction (Glassdoor ratings).
• Majority of promotions are internal (69% in 2021).
• Expanded parental and family leave benefits.
• Provided disaster relief through product donations (Ukraine, Hurricane Ida, Kentucky storms, Texas winter storm).

Governance Achievements

• Established a robust action planning process to address employee concerns.
• Implemented a whistleblower hotline.
• Periodically added new, highly qualified independent directors to the Board.
• Updated committee charters in 2021 to reflect growing risks and opportunities around ESG.
• Established the Compliance Audit Program in 2021.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• High energy consumption in battery production.
• Need to incentivize suppliers to provide energy and emissions data.
• COVID-19 pandemic impact on operations.
• Managing risks associated with the use of critical materials.

Mitigation Strategies

• Building new, better designed and more efficient factories.
• Transitioning to in-house manufactured 4680 Tesla cells.
• Utilizing renewable energy as much as possible.
• Developing an internal EHS&S tool (MyEHS).
• Implementing a responsible sourcing program based on international best practices.
• Conducting supplier audits.

Supply Chain Management

Supplier Audits: 152 supplier locations audited in 2021 (10% of 2021 spend)

Responsible Procurement

• Tesla Supplier Code of Conduct
• Tesla Human Rights Policy
• Tesla Responsible Materials Policy
• OECD Due Diligence Guidance for Responsible Business Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: PwC (attest review engagement on Scope 1 & 2 emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Tesla's products and services contribute to these goals by accelerating the world's transition to sustainable energy.

Sustainable Products & Innovation

• Model 3
• Model Y
• Megapack
• Powerwall
• Solar Roof
• Solar panels
• Tesla Semi