Summary Impact Area Topic Description Page(s) Tesla vehicles consistently achieve 5-star safety ratings in the U.S., Euro and Australasian NCAP programs. In 2020, Passive Safety & Tesla Safety Awards Model X and Model 3 both earned 5-stars across all three programs while Model Y earned 5-stars in the U.S. (it was not 38 - 39 yet available in Europe or Australia in 2020). From 2012 to 2020, there has been approximately one Tesla vehicle fire for every 205 million miles traveled. Data from Fire Safety the National Fire Protection Association (NFPA) and U.S. Department of Transportation show that in the U.S., there is 40 an average of one vehicle fire for every 19 million miles traveled. Product Impact In order to ensure we have the best products in the world, we continually update them with our industry-leading over- Cybersecurity the-air software updates, ensuring our customers always have the latest and greatest security and product features. 41 We also actively engage with academic experts and security experts to ensure the best of the best are pressure testing our systems. Electric grid disturbances in the U.S. have increased dramatically over the last 15 years. Our solar and storage products Resilience of the Grid not only deliver cost savings and energy independence, but they also harden the grid from adverse events in a cost- 42 - 43 effective and environmentally friendly manner. Responsible Material Sourcing While our complex supply chain is a unique hybrid of the traditional automotive and high-tech industries and 45 encompasses suppliers from around the world, Tesla is committed to only sourcing responsibly produced materials. Tesla has reduced cobalt content in our cathode substantially over the years; however, as long as cobalt is in our Supply Chain Cobalt in our Supply Chain supply chain, we are committed to fair and responsible sourcing that follows internationally accepted guidelines while 46-49 supporting the communities from which we source. Tesla continues to map our supply chain and prioritize the largest risks and opportunities. In 2020, lithium and nickel Battery Materials Sourcing became major themes given their contribution to greenhouse gas emissions, as well as environmental and human 50-53 rights challenges within the supply chain. Tesla's employees are its greatest asset and critical to achieving our mission. At the center of our People strategy is Our People Strategy regular and meaningful engagement with our employees, a robust culture of safety, clear development pathways for 55 all our employees, highly competitive compensation programs, and principles of diversity, equity and inclusion built into all aspects of hiring, promotion and retention. People and Tesla began preparing for COVID-19 in December 2019, well before it became a major theme in the U.S. We quickly Culture Our Response to COVID-19 updated policies, procedures and many of our business processes to ensure the health and safety of our employees 56 and customers. In 2020, Tesla had fewer than 40 workplace transmission cases of COVID-19 and our employee positivity rate was less than half the community rate. Tesla believes the ethical treatment of all people and regard for human rights is core to our mission of a sustainable Human Rights future and believe all businesses within our supply chain have a responsibility to support our mission and share our 57 - 58 respect for human rights. 82