Appendix In 2021, we conducted a comprehensive materiality analysis to better understand the key ESG topics that were Our Materiality Analysis most salient to our diverse group of stakeholders. To start, we identified over 40 issues in key areas that could directly or indirectly impact our business. The topics ranged from economic, environmental, social and governance issues. These issues were identified from four components: (1) a competitive landscape review, (2) interviews with investors and other key external stakeholders, (3) industry reports and documented research, such as the World Economic Forum’s 2021 Global Risks Report and (4) external ESG frameworks relevant to our industry and regulatory requirements across global capital markets. Tesla’s Sustainability Council refined the list of 40 key issues into a survey containing 25 questions in an effort to help us prioritize these topics for operational management and disclosure in this year’s Impact Report. As 1. Environmental Management, Reducing Carbon part of the assessment, we surveyed our key stakeholders, asking them to rate the identified economic and ESG 2. Quality Management– Product Safety topics on a scale of 1-5, based on their perceived importance and impact to Tesla’s business. A total of 2,168 3. Employee Workplace Safety individuals from Tesla and approximately 40 external partners, including trade associations, universities, 4. Employee Attraction, Retention, Development suppliers, environmental consultants, nonprofits and local administrators, responded to the survey. 35% of 5. Ethical Business Conduct, Integrity, Transparency responses came from North America, 57% from China and 8% from Europe. Below are the top issues identified 6. Data Protection, Cybersecurity by our materiality analysis, in order of importance to survey responders. 7. Supply Chain Management, Sustainable Materials/Products Tesla Materiality Matrix 8. Customer Satisfaction, Trust and Loyalty Higher 9. Company Brand and Mission 1 10. Employee Health and Wellness 11. Company’s Intellectual Property, Innovation, R&D Key: 12. Renewable Energy s 13. Waste Management/Recycling r Economic e d 14. Company Financial Health ( Product Sold, l Profitability) ho e Environment 15. Employee Compensation and Benefits k a 16. Air Quality, Reducing Toxic Emissions t 17. New Markets, EV, Autonomous Cars n S o Social 18. Labor Relations e 18 7 4 19. Water Management nc ue 20 3 20.Diversity, Equity and Inclusion l 23 19 13 2 nf Governance 21. Climate Change and Risk Management I 22 10 6 22.Biodiversity Preservation, Natural Resource 25 21 5 Conservation 17 15 11 16 12 8 23.Human Trafficking, Forced Labor 24 14 9 24.Critical Events, Disaster Relief, Pandemic 25.Community Engagement, Economic Development Lower Impact to Tesla Business Higher 126
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