Tesla Improves Supply-Chain Sustainability

by Carolyn Mathas

According to environmental group Lead the Charge, Tesla has made strides in improving its supply chain sustainability and human rights practices. The auto company jumped from ninth to third place, improving its performance by 21% in the group’s Auto Supply Chain Leaderboard and Report.

The annual study analyzes 18 automotive manufacturers and ranks them and their efforts to eliminate emissions, environmental harms, and human rights violations from their supply chains. Tesla managed to gain the largest score increase and was the only company to make improvements in each of the study’s indicator categories.

Previously, Tesla did not disclose its Scope 3 supply chain emissions. Last year, it was the only company to disclose disaggregated supply chain emissions by steel, aluminum, and battery production. It also made noticeable improvements in responsible transition mineral sourcing (up 29%).

According to the report, ‚ÄúTesla has a revised requirement on Indigenous Peoples’ right to Free, Prior and Informed Consent (FPIC) in its responsible sourcing policy, and now discloses specific, albeit insufficient, information on the risks to Indigenous Peoples’ rights that it has identified through its broader human rights due diligence assessment of human rights risks in its supply chain.”

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