In its 2021 Impact ReportTesla announced that it was visiting Argentina and the Democratic Republic of Congo to assess both social and environmental risks.
Tesla stated that it has taken steps in order to complete social- and environmental risk assessments. It visited Argentina and the Democratic Republic of Congo (DRC). You may remember some of the headlines in 2020 that focused on one of Tesla’s suppliers and a mine that was hijackedby artisanal miners who used child labor.
Tesla sent a delegation with members of its Responsible Sourcing Committee to visit suppliers from Argentina and DRC. Each trip included visits and meetings with community representatives. Tesla visited a school and an orphanage in the DRC.
“The DRC trip provided a more nuanced view of the complex issue of artisanal and small-scale mining (ASM) and its history within the DRC. In Argentina, the trip focused on questions related to water usage and the use of new technologies to extract lithium in a more energy-efficient way.”
Tesla was able identify risk areas and cross-cutting topics in nickel, cobalt, and lithium supply chains that prioritized engagement. These examples show Tesla listing the priorities and a few examples from actions that he took.
Fair working conditions, occupational safety and health.
Tesla reviewed the following:
- Suppliers occupational safety and health system.
- The supplier’s digital system monitors the risk of unavoidable land slides.
- There are signs of progress towards eliminating safety-related incidents
- Minutes taken from community meetings to raise awareness on safety risks related to landslides or trespassing.
- Suppliers must agree to conduct a Human Rights Risk and Impact Assessment.
Protecting water quality and water level in waterways affected due to supplier operations
Tesla has reviewed this area:
- Data on water quality and water levels including environmental surface water monitoring sheets.
- Evidence that potential acid leakage sources were decommissioned or reengineered.
- Minutes of community meetings to raise awareness about potential sources of water contamination and mitigation measures.
- Written assurance that water will not be discharged to nearby water sources.
Tesla added that its delegation met with community representatives to confirm that a supplier’s usage of freshwater is not impacting the communities’ water access.
Tesla also helped to establish a committee of independent environmental specialists for another supplier. The focus was on assessing and working with the supplier regarding environmental risk management.
Coexistence between industrial andartisanal mining operations.
This section contains a review of Tesla:
- Evidence of government support for legalization of artisanal mine sites
- Evidence for investing in initiatives that support responsible artisanal miner.
Tesla stated that it met with representatives from artisanal miners and provided funding for initiatives that support responsible mining. This is because the DRC is an important source of cobalt for Tesla’s battery. Tesla said,
“We will continue supporting sourcing from the DRC provided our responsible sourcing standards are met. Tesla does not source cobalt directly from small-scale and artisanal mining (ASM), but we recognize the importance ASM has for local livelihoods. This is why Tesla provides funding to, and sits on, the Steering Committee of the Fair Cobalt Alliance (FCA), a multi-stakeholder initiative to support the improvement of conditions in communities impacted by artisanal mining.”
This is what Tesla is doing:
- Mine workers are encouraged to be aware of safety and occupational health.
- Safety captains are selected and trained in first aid for mine workers.
- Distribution of protective equipment for washerwomen
- With financial literacy training, the creation of savings groups for members from the mining community is a prerequisite.
- In collaboration with Save the Children, a referral system was developed for children involved in mining activities. It included a child labor notification protocol and remediation solution packs. Guidelines for case managers were also developed on how to remediate.
- Trainings in child rights.
- Five schools were electrified through the distribution and charging of solar-powered portable lamps.
- A football field and a marketplace are chosen for the placement of lighting poles.
Conservation of forests and biodiversity
Tesla took a look at this area:
- The area of operation of a supplier relative to nearby forest areas.
- A supplier will provide rehabilitation and reforestation plans.
- Written assurance that mining activities were not conducted in rainforest areas.
- Assessments of environmental impact.
Community consultation, engagement, and protection of indigenous right.
Tesla mentioned that it met directly with representatives from communities affected by mining operations. This was to review the ongoing consultations and engagements and ensure that the community’s needs were met.
Tesla also reviewed the following:
- Minutes of meetings to ensure that communities are regularly consulted.
- Evidence for a best-practice Free, Prior, & Informed Consent process (FPIC), including coordination with relevant government authorities
Air pollution and reduction of GHG emissions
Tesla noted that Tesla’s current approach to data collection on greenhouse gas emissions is being implemented. In its Impact Report, Tesla provided the following chart.
Graph courtesy Tesla
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Graph courtesy Tesla
Tesla stated that the data it collects will allow it to develop the necessary actions in order to reduce Scope 3 emissions.
“Based on an initial review, 15 refiners and mine sites in Teslas supply chain disclosed that they conducted an LCA.”
Cross-cutting.
Tesla shared that across all of the risk areas it identified, it reviewed its suppliers’ audit frameworks to ensure that any upcoming audits will cover all areas identified in the above sections. There were a total of 55 corrective actions agreed to with suppliers related to suppliers’ environmental and social management processes.
Tesla also increased its social and environmental requirements in supplier contracts. LCAs and responsible mining standards are two examples. They also disclose the footprint of greenhouse gases and transparent and proactive risks.
Tesla also established a formal technical partnership with one of its suppliers to address sustainability.
Tesla’s Collab With Industry Initiatives
Tesla also shared details on its collaboration with industry initiatives, noting that although many of the social and environmental issues in the global EV supply chain don’t concern only Tesla, it’s actively engaging in multi-stakeholder forums and industry groups to find solutions.
According to Tesla, the following questions and solutions can be found:
“Initiative for Responsible Mining Assurance (IRMA):Tesla joined IRMA in 2021 as a Member to support responsible mining practices. The transparent and robust audit process emphasizes community interviews. Tesla believes it is important that communities and NGOs actively participate in third party audits of mines against IRMA Standard. Their perspectives provide more context on mining operations and their impacts while also increasing accountability for improving the process.
“Global Battery Alliance (GBA):Since 2020, Tesla has been involved with the GBA and has served on both the GBA Board as well as the Battery Passport Steering Committee from 2021. As part of the GBA, Tesla’s goal is to advocate for high standards in responsible battery material sourcing, align with EU regulatory demands, and support development of actionable guidance regarding GHG emissions data collection and recycling, as well as in-country environmental, and social projects.
“Responsible Minerals Initiative (RMI):Tesla is a member the RMI to support refiner audit programs of the RMIs and industry-wide responsible Sourcing dialogue.
“IFC Net Zero Roadmap Working Group:Since early 2022, Tesla has been a member of the IFC Working Group to provide a downstream view in the development and implementation of actionable guidance for mines to reduce carbon emissions.
“Re|Source:Source consortium’s supply chain-wide supply chain to pilot blockchain-supported traceability for the cobalt supply chains.|Source consortium to pilot blockchain-supported traceability in the cobalt supply chain. Tesla offers insights from an OEM perspective on metrics critical to traceability efforts and works with the consortium towards the first end-to-end blockchain-enabled tracing of cobalt material starting from Teslas supplier in the DRC to Gigafactory Shanghai.”
Tesla’s support of the Fair Cobalt Alliance (FCA) was also mentioned. The full Impact Report can be viewed here Here.
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