Management Assertion Scope 1 & 2 GHG Emissions Overview Table 2: Metrics – GHG Emissions With respect to the greenhouse gas (GHG) emissions metrics for the year ended GHG Emissions and Assessment Criteria1,2,3 Quantity December 31, 2021 presented in table 2 below, which are also included in this Tesla Impact Scope 1 GHG Emissions4 185,000 Metric Tons CO2e Report 2021 as identified by the “*” symbol, management of Tesla, Inc. (Tesla) asserts that Direct GHG emissions occurring from stationary combustion, the GHG emissions metrics are presented in accordance with the assessment criteria set mobile combustion, and process emissions. Scope 2 GHG Emissions (location-based)5 403,000 Metric Tons CO2e forth below. Indirect GHG emissions from the generation of electricity Management is responsible for the selection of the criteria, which management believes purchased by Tesla for site operations. provide an objective basis for measuring and reporting on the GHG emissions metrics, and for the completeness, accuracy, and validity of the GHG emissions metrics. Tesla’s GHG Emissions Disclosure GHG emissions are rounded to the nearest thousand. 1. Tesla considers the principles and guidance of the World Resources Institute (WRI) and the Organizational Boundary World Business Council for Sustainable Development’s (WBCSD) Greenhouse Gas Protocol Initiative’s A Corporate Accounting and Reporting Standard, Revised Edition, and GHG Tesla uses the operational control approach to account for and report its Scope 1 and Protocol Scope 2 Guidance, An amendment to the GHG Protocol Corporate Standard Scope 2 GHG emissions. This includes sites engaged in manufacturing; sales, service, and (together the “GHG Protocol”) to guide the criteria to assess, calculate and report direct delivery; and other activities described below. Data for acquired sites are included once and indirect GHG emissions. the site has been operating for at least a year at the beginning of the reporting period. 2. GHG emissions quantification is subject to significant inherent measurement uncertainty Table 1: Description of Tesla Sites because of such things as GHG emissions factors that are used in mathematical models to Site Type Site Activities calculate GHG emissions, and the inability of these models, due to incomplete scientific Manufacturing Manufacture Tesla products, including vehicles, superchargers, solar tiles, knowledge and other factors, to accurately measure under all circumstances the relationship and energy storage products. Support manufacturing through the design between various inputs and the resultant GHG emissions. Environmental and energy use and manufacture of equipment and tools used at manufacturing sites or by data used in GHG emissions calculations are subject to inherent limitations, given the nature storing manufacturing materials, parts, or finished products. and the methods used for measuring such data. The selection by management of different Sales, Service, Sell products, provide vehicle service, store parts for vehicle service, and but acceptable measurement techniques could have resulted in materially different amounts and Delivery deliver vehicles. or metrics being reported. (SSD) Other Conduct research & development, administration, energy product warehousing and deployment, and other mixed-use warehousing. 139
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