Company’s CSR activities

The first activity to mention is Responsible material sourcing. Tesla sources only the

materials that are produced responsibly. The Tesla Supplier Code of Conduct and its Human Rights and Conflict Minerals Policy have specific expectations to all partners and suppliers involved in working with Tesla. These include safe and humane working conditions in supply chains, ensuring that workers are treated with dignity and respect and that manufacturing processes are environmentally responsible. Tesla suppliers have to provide evidence of management systems that have environmental, social and sustainability best practices in their operations, and to demonstrate commitment to responsible sourcing into their supply chains.

Tesla’s complex supply chain is a unique hybrid of high-tech and the traditional automotive industries, and includes suppliers from around the world. A lot of our Tier company’s direct suppliers do not obtain all of their raw materials directly and but purchase them from their suppliers and sub-suppliers. That is why, it is difficult to reliably determine the origin.

However, the due diligence practices add transparency to the whole process. Tesla’s

automotive suppliers are obliged to register in the International Material Data System to meet regulations of EU and other international regulations that deal with environmental and

material issues. Tesla, together with its partners and independent third parties, conducts audits to observe these principles in action.

Another CSR activity of Tesla is Disaster Relief. Solar and energy storage systems provide zero-emission energy and if there is an electric grid outage, energy storage systems can immediately be an only provider of power to homes, communities, and businesses — this might be especially crucial in case of a natural disaster. In years 2018 and 2019, Tesla helped governments, non-profit organizations, and individuals, who suffered from hurricanes in Florida, North Carolina, and the Bahamas, and during wild fires in Australia and California. A lot of the sites that were supported immediately after a disaster are still powered by Tesla systems.

Tesla is also concerned about People and culture. Tesla is building a culture that is safe, fair, and inclusive for all the employees. The company tries to ensure that everyone looks forward to coming to work every day.

Tesla’s goal is not only to make the safest cars in the world, but also to have the safest car factories in the world. To achieve this goal, Tesla has Environmental, Health, and Safety. The

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team works closely with employees and stakeholders to minimize accidents and strengthen environmental controls. The strategy is based on three pillars:

1. Do the Basics Right. Tesla conducts trainings for all of production associates to ensure employees have the tools and knowledge required to identify issues before they occur. They also launched on-site medical clinics at factories to provide healthcare services to employees.

Apart from that, there is a Return to Work process, which gives an opportunity to employees recovering from an injury or sickness to return to work in a safe and timely manner.

2. Engage the Stakeholders. Tesla meaningfully engages with its employees. With the help of various activities and seminars, employees were encouraged to explore why Environmental, Health and Safety program matters to them, what impact it has on their work, and provide leaders suggestions on the possible ways to further improve safety at Tesla. This has resulted in a 35% year-over-year increase of employee engagements, which has helped the company to minimize injury incidents.

3. Reduce Risk. Reducing risk of injury begins at the design phase of company’s facilities. It is very important to design and construct in a way that minimizes the possibility of workplace injury.

Tesla’s Commitment to Diversity and Inclusion. Is another aspect of CSR. Tesla believes in having a diverse and inclusive workforce full of talented, driven, and authentic individuals.

Tesla values talented individuals who are passionate about and committed to its mission.

Tesla’s Diversity and Inclusion team together with business leaders play a significant role in bringing the commitment of diversity and inclusion to practice in Tesla via recruiting

practices and community engagement activities.

Last but not least is Community Engagement. Tesla is focused on programs that positively impact the communities we live in. Tesla opens doors for factory tours, empowers teachers through new development opportunities and establishes partnership with local organizations that drive change to a brighter future.

Tesla believes that teachers are the necessary and highly important part of development of the next talented generations in communities. Since 2018 Tesla has been hosting high school teachers for multi-day externships to tell them more about the career paths that Tesla provides.

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Investing in Education is also a part of Tesla’s commitment to the community. Tesla has become partners with entities to accelerate robotics and sustainability programming.

Company provides access for students and the community by having workshops, educational activities, and event opportunities as a part of the Factory Tour Program. At factories in California and Nevada, Tesla hosts about 40,000 visitors each year to gain insight into Tesla’s mission and vision for a sustainable future.

Introduce a Girl to Engineering Day is a way to help promote engineering careers to young women. Tesla hosted 200 middle school girls as part of National Engineers Week. At its facilities, about 80 Tesla employees were volunteers at the events, helping to encourage young female students to see technology as a one of the possible ways for their future career.

Employee Mobility and Transportation Programs

Tesla offers alternative, more sustainable way of commuting to its employees to reduce their carbon impact on the environment. Tesla encourages ride sharing via a number of services, such as commuter shuttles. Operation of network of commuter shuttles to and from work helps to reduce not only vehicle emissions, but also time spent in traffic. Because of COVID-19, Tesla has updated protocols for operating and riding on shuttles. They include provisions that ensure temperature checks prior to boarding, proper social distancing while onboard, and cleaning of shuttles in between trips. Obviously, Tesla encourages its employees to go electric and to help them with that it has hundreds of electric vehicles charging stations located at Tesla’s facilities.³⁸

38 TESLA, INC. Impact Report. [Online] 2019. [Accessed 11 October 2020.]. Available from:

https://www.tesla.com/ns_videos/2019-tesla-impact-report.pdf.

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