Engaging with Indigenous Partners: Summary

Governance

1. Mission

Callout

Tesla’s mission, as stated in the latest Impact Report, is to accelerate the world’s transition to sustainable energy.

Mission Highlight

Accelerate the world’s transition to sustainable energy.

2. Materiality and TCFD Alignment

Completed a sustainability assessment with final materiality findings to prioritize topics by “Most” to “Least” impact.
Aligned with TCFD framework, including governance, strategy, risk management, and metrics/targets for climate-related risks and opportunities.
Conducted climate risk management and physical climate risk assessments; elevated human rights as core to mission.
Privacy and cybersecurity practices detailed, including privacy-by-design, customer data choices, transparency, and rigorous security controls.

Supply Chain

Tesla manages supply chain risks through a robust responsible sourcing program that includes transparency, traceability, and upstream engagement across priority materials.

Standards & Governance

Priority raw materials: aluminum; lithium, nickel, cobalt, graphite; tin, tantalum, tungsten, gold (3TG); and ferrous metals (steel & iron).
Corporate Social Responsibility (CSR) Audit Program enhanced; risk-based approach aligned with ILO indicators to combat forced labor.
Launched integrated supply chain mapping tools and scaled Supplier Self-Assessment Questionnaire (SAQ).
End of 2024: suppliers required to implement emissions monitoring plans (ISO 14064/14067) or third-party verified product LCA.

Performance & Recognition

Leading rankings by NGOs: #1 by Lead the Charge, #2 by Amnesty International, #1 by Rainforest Foundation (2024).
Nickel: >49% directly sourced; 100% traced to origin of extraction; audits, LCAs, and decarbonization plans reviewed for key suppliers.
Lithium: >73% directly sourced; IRMA audits increased 3x; 100% directly contracted suppliers provided LCA datapoints.
Programs: Fair Cobalt Alliance (ASM support) and NEST (Nickel Efforts for a Sustainable Transition) in Indonesia.

Circularity & Recycling

Closed-loop battery initiatives & manufacturing scrap reintegration

Remanufacturing Impact

3 GWh

remanufactured capacity; 38,000 components; ~$420M value

Supplier Tools

SAQ + Mapping

Integrated supplier risk visibility & traceability

Environment

Tesla’s environmental strategy focuses on displacing fossil fuels, decarbonizing operations, maximizing water and resource efficiency, and enabling grid reliability through storage.

CO2e Avoided (2024)

~32 million tCO2e

avoided by customers

Per-Vehicle Benefit

~35 tCO2e

avoided over vehicle lifetime

Water Intensity (2024)

2.16 m³/vehicle

Gigafactory Berlin-Brandenburg

Carbon Impact of Operations

Data-driven emissions tracking across Scope 1–3 with refined data collection and product-level calculations.
Renewables procurement and on-site design optimizations (e.g., heat recovery, dynamic controls, AI-driven efficiency).
Natural gas and electricity savings via factory initiatives (e.g., up to ~46,000 MWh/yr natural gas savings; ~17,000 MWh/yr energy savings; ~9.5 GWh/yr additional savings; ~860 MWh/yr avoided electricity at sites noted).

Resource Efficiency & Circularity

Waste per vehicle decreased as factories become more efficient (e.g., Giga Shanghai vs. Fremont improvements).
Industrial water recovery/recycling plants (up to 100% factory process wastewater recycle).
Closed-loop battery materials progress and end-of-life pathways with internal processing and external partners.

Product and Safety

Why the Products Are Better

Zero direct-emission EVs and energy products reduce climate and air-pollution impacts.
High efficiency EV powertrains; lifecycle emissions decrease as grids decarbonize.
Grid-scale batteries (Megapack) enable renewable integration, stability, and lower emissions; VPPs add flexible capacity.

Product Safety

Vehicle safety leadership across continents; safety-by-design principles.
Autopilot technology correlated with increased miles between accidents: ~6.77M miles with Autopilot engaged vs. ~1.18M without (report figures).
Fire safety: ~6.5 vehicle fires per billion miles (lower than typical benchmarks).
Supercharger uptime: 99.95% in 2024; up to ~200 miles recovered in ~15 minutes at Superchargers.

Energy Storage Deployed (2024)

31.4 GWh

global deployments

VPP Grid Support (2024)

2.8 GWh

100k+ Powerwalls; ~750 MW capacity

Vehicles Delivered (2024)

~1.8M

global deliveries

People and Community

Engagement & Development

Extensive education and talent pipelines: internships, apprenticeships, technician programs, military fellowship, and manufacturing/service programs.
Performance management: 100% completion of bi-annual evaluations; 61% self-assessment completion in year one; 30,000+ goals set.
Employee voice: “Take Charge” safety observations scaled from 48,895 (2021) to 731,518 (2024).

Health, Safety & Integrity

ASTM recordable rate: 2.28 (2024) with ongoing reduction initiatives and Human & Organizational Performance principles.
Near-100% completion of Code of Business Ethics training; established Integrity Line with structured investigation process.
Comprehensive benefits: medical, paid parental leave, mental health, ESPP, family services, and more (examples shown in report).

Women-Centric Policies

Introduce a Girl to Engineering Day
Paid maternity leave (as part of global benefits examples)

Gender Composition (EEO-1 snapshot)

~22% Women, ~78% Men

across total workforce (report table)

Community Support

2,000+ community initiatives

Mobile Powerwalls deployed; disaster relief support highlighted

Note on Women-Centric Disclosures

While several programs and benefits support women (e.g., STEM pipeline and parental leave), no separate, detailed women-specific policy framework is explicitly outlined beyond these examples in the provided materials.

Overall Summary

Tesla demonstrates strong ESG integration across strategy and operations. Environmental performance is supported by large-scale emissions avoidance via EVs and grid storage, factory decarbonization initiatives, water efficiency, and circularity advances. Governance emphasizes materiality, TCFD alignment, privacy/security, and leading responsible sourcing with third-party recognition. People and community practices include robust safety systems, talent pipelines, benefits, ethics training, and community relief—alongside programs aimed at increasing representation in STEM. Continued transparency on gender outcomes and dedicated, women-specific policy frameworks could further strengthen social disclosures.

ESG Rating

Scale: 1 (Low) to 10 (High)

8 Strong overall performance backed by data-rich reporting; opportunities remain in social disclosures depth and gender parity outcomes.

ESG Evalutation Report

Overview