Battery Supply Chain Collect and review environmental and social data to identify risks #2 Risk Identification In the past year, Tesla collected environmental and social data in its cobalt, lithium and nickel supply chains through the following main activities: 2.1 Audits Audits are an important tool for Tesla to gather environmental and social data for cobalt, nickel and lithium. 100% • In 2021, 83% of refiners and mine sites in Tesla’s supply chain, including 100% of refiners and mine sites from Refiners and mine sites in Tesla’s whom Tesla sources directly, either underwent or committed to undergo independent external sustainability cobalt, nickel and lithium supply audits against one of the following sustainability and responsible mining standards: IRMA Standard, the chains that we directly sourced from Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP), Towards Sustainable underwent or have committed to Mining (TSM) and/or the International Council on Mining and Metals (ICMM) Performance Expectations. undergo independent third-party • In addition, Tesla conducted six audits in the battery supply chain tailored to Tesla’s specific environmental and social requirements, including the OECD guidance and environmental management systems. Tesla also sustainability audits has an audit program that goes beyond the battery supply chain – please see pages 112 - 115. • Tesla also reviews suppliers’ ISO14001 (environmental management) and OHSAS 18001 (occupational health 83% and safety) certification statuses. Of all refiners and mine sites in Tesla’s cobalt, nickel and lithium supply chains underwent, or have committed to undergo, independent third-party sustainability audits 102
Tesla 2021 Impact Report Page 101 Page 103