10 April 2024

Tesla is committed to ensuring our suppliers respect human rights and protect the environment. Our Responsible Sourcing Policy, Supplier Code of Conduct, and Global Human Rights Policy (links) provide more information regarding our commitments, which are aligned with the OECD Responsible Business Conduct Framework, the OECD Due Diligence Guidance for Responsible Minerals Supply Chains and the UN Guiding Principles on Business and Human Rights.

As per these policies, we believe the best way to promote responsible sourcing is to remain engaged and encourage corrective actions. As outlined in Tesla’s 2022 Impact Report (link – see pages 171- 172), Tesla implemented the following measures in our nickel supply chain, including in Indonesia:

• Tesla team visits to nickel sites in Indonesia in May 2022 and December 2023, focused on questions related to deforestation, water management, energy emissions, and local traceability efforts.
• 28 audits against internationally-recognized responsible production standards, such as the Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP), IFC Performance Standards, International Council on Mining and Metals (ICMM Performance Expectations), including nickel refiners and mines. This included supplier sites located in Indonesia.
• Ongoing discussions with NGOs related to appropriate mining standards for nickel mining, stakeholder mapping and community impacts in Indonesia.
• Discussed our sustainability expectations during a roundtable on ESG expectations for nickel producers in Indonesia organized by the Nickel Institute in December 2022.
• GHG emissions data collected from 61% of nickel mines and upstream refiners in our supply chain, including in Indonesia, with ongoing tracking and support on decarbonisation roadmaps.
• Reviewed safety records and provided clear guidance on safeguards around working conditions.
• Included clear expectations on water management and reviewed reports on water quality around mine sites.
• Reviewed environmental permits and annual reports provided to government to ensure mining is occurring within permitted areas.
• Worked with suppliers to conduct thorough stakeholder mapping and maintain relationships with local communities.
• Engaged with suppliers to ensure adequate tailings management systems are in place so that a prompt response is deployed in case of failure.