ESG Evalutation Report

ESG Evalutation Report

Independent synthesis based solely on the provided submission and Impact Report excerpts.

Overview

Company
Tesla
CEO
Not disclosed in provided data
Total Employees
200,000
Female Employees
1,000
Male Employees
199,000
Employee Handbook
Not provided

Governance

Mission

Accelerate the world’s transition to sustainable energy.

Materiality and TCFD Alignment

  • Completed sustainability assessment and materiality mapping with “Final Assessment Findings” prioritizing most impactful topics.
  • Aligned with TCFD: governance, strategy, risk management, and metrics/targets addressed, including climate risk management and physical climate risk assessment.
  • Human rights, cybersecurity, and data privacy are integrated governance priorities supporting enterprise risk management.

Supply Chain

Responsible sourcing is embedded through risk identification, prioritization, and mitigation across raw materials (aluminum, lithium, nickel, cobalt, graphite, 3TG, and ferrous metals). The program integrates transparency, traceability, human rights engagement, vertical integration, recycling, and emissions reduction.

Key Standards & Controls

  • CSR audits scaled from 22 (2021) to 187 (2024).
  • Forced labor risk management aligned with ILO indicators; corrective actions enforced where needed.
  • Supplier Self-Assessment Questionnaire scaled and integrated; dedicated supply chain mapping tool launched.
  • Aluminum due diligence strengthened: 95% ASI Performance Standard certification for Cybertruck suppliers (+3% YoY); broader suppliers +9% YoY certified.

Decarbonization & Traceability

  • Suppliers required to implement emissions monitoring (e.g., ISO 14064/14067) and/or third-party verified LCAs; carbon integrated into purchasing decisions.
  • Nickel: >49% sourced directly; 100% traced to origin of extraction.
  • Lithium: >73% sourced directly; preferred IRMA audits adopted across assets; supplier decarbonization plans reviewed.
  • Country-focused initiative: Nickel Efforts for a Sustainable Transition (NEST) program launched in Indonesia.
  • Fair Cobalt Alliance participation and enhanced ASM due diligence.

Environment

Tesla’s products and operations focus on displacing fossil fuels, optimizing energy and water use, and enabling circularity. Real-world data informs lifecycle assessments and decarbonization.

Carbon Impact of Products
~32M tCO2e
Customer emissions avoided in 2024
Scale of Impact
1.8M
Vehicles delivered in 2024
Energy Storage
31.4 GWh
Storage deployed globally in 2024

Carbon Impact of Operations | Key Measures

  • Renewables procurement and on-site generation advancing decarbonization; Tesla solar owners generated ~1.4x the renewable electricity needed to power all Tesla locations (informational benchmark; not counted toward operational goals).
  • Factory upgrades delivering savings: up to 50% natural gas savings annually (melt center); ~17,000 MWh/year energy savings (hygrometric control); ~9.5 GWh/year savings (NMP refinery efficiencies).
  • Additional impacts: ~860 MWh/year avoided electricity (heat recovery pump control); ~46,000 MWh/year natural gas savings (centralized RTOs); nearly ~3,000 tCO2e avoided/year (casting optimization).
  • Facility design emphasizes energy efficiency, sustainability-by-design, and electrification.

Water & Biodiversity

  • Gigafactory Berlin-Brandenburg water intensity: 2.16 m³/vehicle (2024) and on-site industrial water recovery and recycling plant capable of recycling up to 100% of process wastewater.
  • Water-intense process optimization, rainwater/condensate harvesting, and reclaimed/recycled water usage.

Waste & Circularity

  • Waste per vehicle reduced via efficiency gains (e.g., Giga Shanghai 152 vs. Fremont 289 in 2024).
  • Battery circularity advancing: manufacturing scrap reintegration, repair/remanufacture programs, and scaled recycling partnerships.

Product and Safety

Products are engineered to minimize emissions, maximize safety, and improve over time via software and data-driven learning. Energy products enhance grid reliability and enable renewable integration.

Why the Products Perform Better

  • EVs displace fossil fuel emissions; each Tesla vehicle avoids ~35 tCO2e over its lifetime (context from lifecycle visuals).
  • High efficiency vehicles; rapid charging: recover up to ~200 miles in 15 minutes.
  • Grid-scale storage (Megapack) reduces peak fossil generation and enhances stability; residential storage supports VPPs.
  • Over-the-air improvements: 250+ updates; ~99% of vehicles improved via updates.

Product Safety Highlights

  • Autopilot safety: miles driven before one accident — With Autopilot: ~6.77M; Without Autopilot: ~1.18M.
  • Supercharging network reliability: ~99.95% average site uptime (2024).
  • Vehicle fire safety leadership: ~6.5 vehicle fires per billion miles.
  • Rigorous testing of FSD (Supervised) and Safety ScoreBeta incentivizes safer driving behaviors.
  • Energy products designed for safety and resilience; documented high-availability and grid-stability events (e.g., Australia, Hawai’i, Puerto Rico).

People and Community

Company programs emphasize workforce development, safety, integrity, and community support, with multiple entry pathways and continuous learning. Benefits include medical coverage, paid parental leave, EAP, and stock programs.

Workforce Development & Engagement

  • Programs: internships, apprenticeships, START (Manufacturing & Service), Military Fellowship, Technician Trainee, Manufacturing Development, Leadership development.
  • Performance & development: 100% completion of bi-annual evaluation cycles; 61% employee self-assessment completion in first year; 30,000+ goals co-developed.
  • Education Assistance, FlexLearn/Dual Study programs in place; reported 76% development participation.

Safety, Integrity & Wellbeing

  • Occupational safety: ASTM rate 2.28 (2024); contractor safety emphasized; “Take Charge” program empowers proactive hazard reporting.
  • Integrity Line with formal investigation workflow; near-100% COBE training completion; anti-harassment and non-discrimination commitments.
  • Benefits: medical insurance & health check-ups, paid maternity and paternity leave, EAP, family services, back-up care, ESPP.

Community & Inclusion

  • Community energy resilience: 2.28 MWh clean energy restored via Mobile Powerwall deployments across multiple regions (2024).
  • EEO-1 snapshot: 78% male, 22% female overall (company-wide table).
  • Women-centric policies: Paid maternity leave and family services noted. No dedicated women-specific advancement programs explicitly described in the provided data.
  • Handbook: Not provided in survey response.

Overall Summary

Tesla demonstrates robust environmental and supply chain practices, with strong renewable integration, measurable operational decarbonization projects, and mature responsible sourcing (audits, traceability, and direct sourcing for critical minerals). Product safety and reliability are reinforced by real-world telemetry and over-the-air updates. People programs cover multiple pathways, safety, integrity, and wellbeing; however, the survey indicates no published employee handbook and the provided data does not enumerate dedicated women-centric advancement initiatives. Gender representation data differs between survey totals and the EEO-1 snapshot, suggesting an opportunity to reconcile disclosures.

ESG Rating (based on provided data)

8 / 10
  • Strengths: Clear climate mission, demonstrated emissions impact, advanced supply chain due diligence and decarbonization, strong product safety indicators, maturing circularity.
  • Opportunities: Publish employee handbook; expand and disclose women-centric advancement programs; continue reconciling workforce gender data between sources.