Appendix In 2021, we conducted a comprehensive materiality analysis to better understand the key ESG topics that were most salient to Our Materiality Analysis 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 part of the assessment, we surveyed our key stakeholders, asking them to rate the identified economic and ESG topics on a scale of 1-5, based on their perceived importance and impact to Tesla’s business. A total of 2,168 individuals from Tesla and approximately 40 external partners, including trade associations, universities, suppliers, environmental consultants, nonprofits and local administrators, responded to the survey. 35% of responses came from North America, 57% from China and 8% from Europe. Below are the top issues identified by our materiality analysis, in order of importance to survey responders. Higher Tesla Materiality Matrix 1. Environmental Management, Reducing Carbon 2. Quality Management– Product Safety 1 3. Employee Workplace Safety 4. Employee Attraction, Retention, Development 5. Ethical Business Conduct, Integrity, Transparency 6. Data Protection, Cybersecurity Key: 7. Supply Chain Management, Sustainable Materials/Products s 8. Customer Satisfaction, Trust and Loyalty r e Economic 9. Company Brand and Mission d ol 10. Employee Health and Wellness h 11. Company’s Intellectual Property, Innovation, R&D ke a Environment 12. Renewable Energy t 13. Waste Management/Recycling S 14. Company Financial Health ( Product Sold, Profitability) on 15. Employee Compensation and Benefits e 18 7 4 c Social 16. Air Quality, Reducing Toxic Emissions n e 20 3 17. New Markets, EV, Autonomous Cars u 19 l 23 13 18. Labor Relations f 22 2 In 10 6 Governance 19. Water Management 25 21 5 20.Diversity, Equity and Inclusion 17 15 11 21. Climate Change and Risk Management 16 12 8 22. Biodiversity Preservation, Natural Resource Conservation 24 14 9 23. Human Trafficking, Forced Labor 24. Critical Events, Disaster Relief, Pandemic 25. Community Engagement, Economic Development Lower Impact to Tesla Business Higher 84
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