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 Fair working conditions and Tesla reviewed occupational health and • A supplier’s occupational health and safety system safety • A supplier’s digital system to monitor the risk of unavoidable landslides • Evidence of progress towards the elimination of safety-related incidents • Minutes from community meetings to raise awareness around safety risks related to landslides and trespassing • A supplier’s commitment to conduct a Human Rights Risk and Impact Assessment (HRRIA) Protecting water levels and Tesla reviewed water quality in waterways • Data on water levels and water quality, including environmental surface water monitoring affected by supplier sheets operations • Evidence that potential sources for acid leaks were decommissioned or re-engineered • Minutes from community meetings to raise awareness of potential sources of water pollution and mitigation measures • Written assurance that water is not discharged to water sources for nearby communities Tesla also met with community representatives to confirm that a supplier’s usage of freshwater does not impact communities’ water access. For another supplier, Tesla participated in the establishment of a committee of independent environmental experts to assess and work with the supplier on environmental risk management. Co-existence between Tesla reviewed industrial and artisanal • Evidence for a supplier’s government engagement in support of artisanal mine site mining operations legalization • Evidence for investments into initiatives supporting responsible artisanal mining Tesla also met with representatives of artisanal mining communities and provided funding to initiatives supporting responsible artisanal mining (see page 109). 107