Battery Supply Chain Environmental and social risk mitigation and improvement of conditions #3 Risk Mitigation and Positive Impact As a result of the activities listed in Step 2, Tesla identified the following focus areas for risk mitigation and improvement of local conditions at or around cobalt, nickel and lithium mine sites in Tesla’s supply chain: Priority area Examples of actions taken by Tesla Protection of forests and Tesla reviewed biodiversity • A supplier’s area of operation in relation to nearby forest areas • A supplier’s reforestation and rehabilitation plans • Written assurance that mining activities did not take place in rainforest areas • Environmental impact assessments Community consultation and Tesla directly engaged with representatives of communities affected by mining operations to engagement and protection review that regular engagement and consultation take place and community needs are of indigenous rights responded to. Tesla also reviewed • Meeting minutes to ensure communities were regularly consulted • Evidence for a best-practice Free, Prior and Informed Consent (FPIC) process, including in coordination with responsible government authorities GHG emissions reduction Tesla’s approach to GHG emissions data collection (see Graph in Step 2) is currently being and air pollution implemented. The data collected will inform the development of concrete actions to reduce Tesla’s Scope 3 emissions. • Based on an initial review, 15 refiners and mine sites in Tesla’s supply chain disclosed that 15 they conducted an LCA Refiners, smelters and mine sites in Tesla’s Cross-cutting Across all risk areas identified, Tesla battery supply chain disclosed they conducted • Reviewed suppliers’ audit frameworks to ensure upcoming audits will cover all areas an LCA identified above • 55 corrective actions agreed to with suppliers related to suppliers’ environmental and social management processes 55 • Expanded environmental and social requirements in supplier contracts, for example related to responsible mining standards, LCAs, GHG emissions footprint disclosure, and Corrective actions agreed to with suppliers transparent and proactive risk disclosure related to their sustainability management • Developed a formal technical collaboration on sustainability with a supplier processes 108