Cobalt Sourcing Human rights issues in the cobalt supply chain require a robust approach to due diligence Tesla’s supply chain due diligence program and efforts to conduct a country-of-origin inquiry with respect to our entire supply chain are in line with the OECD Due Diligence Guidance for Responsible Sourcing from Conflict-Affected and High-Risk Areas (OECD Guidelines). In addition to following our due diligence program requirements, all suppliers, sub-suppliers and mining companies within Tesla’s supply chain are required to adhere to our Code, including taking a proactive approach to reducing environmental and resource impacts. All our suppliers are also expected to follow our Code of Business Conduct and Ethics, including avoiding any activities related to corruption, conflict of interest or money laundering and any actions that would harm the health and safety of their employees. In order to further increase the transparency of our cobalt supply chain, we collect detailed data from relevant suppliers using the RMI Cobalt Reporting Template. Because Tesla recognizes the history of human rights issues within cobalt supply chains, particularly in the Democratic Republic of the Congo (DRC), we have established processes to prevent these risks in our supply chain. We also recognize that mining conducted in a responsible and ethical manner is an important part of the economic and social well-being of those communities. We review all information provided by our suppliers for red flags and risks associated with ethical sourcing. Where we can be assured that minerals, including cobalt, are coming from mines that meet our social and environmental standards, we will continue to support sourcing from the DRC and other regions. 46
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