Prior to 2018, Tesla mainly focused on updating a webpage with the estimated emission reductions caused by its electric vehicles, and, according to The Transition Pathway Initiative, scored zero in climate performance for not disclosing policies and programs related to ESG topics. However, it is not clear how Tesla will repurpose and recycle its batteries. As you probably know, Tesla prioritizes green energy and sustainable practices. The combination of the three metals creates a battery that has longevity and stability throughout the life cycle of the vehicle. However, Tesla has not been clear about when and how this will happen. How Does Tesla Perform on ESG? 22 June 2020, source edie newsroom. On January 2 nd, Tesla reported both Q4 and 2020 full year operational performance, once again exceeding Wall Street expectations, but falling just short of total year vehicle delivery performance.. Ultimately, to achieve the environmental targets necesary to avoid climate disruption, we need to change our car-centric culture and invest in public transportation, including electric buses, trains and bikes. Tesla indicates that it is working to increase transparency on its cobalt supply chain and its ultimate goal is to eliminate cobalt completely from its batteries. They expect Tesla’s ESG risks to be high for governance and social risk factors, while environmental risks to remain low due to the company focus on electric vehicles. According to Tesla’s 2019  Impact Report, its batteries are designed to outlast their cars and they have ambitions to design batteries that could last for 1 million miles. There are several examples where Tesla had violated labor rights and forced workers to work in unsafe conditions. The emissions associated with the manufacturing of Tesla batteries are dependent on the factory’s location and the energy source used in the process. The Palo Alto, California-based maker of electric cars was on track for all-time highs in revenue and profits (annual figures will be reported later this month). The report offers a clear reminder of Tesla's mission, which is simply to "accelerate the world's transition to sustainable energy." The automaker plans to eventually produce a zero-cobalt battery for its … Tesla had a great year in 2020, seeing its stock price soar by more than 600%. Not an investment advice: The information provided on this website is intended for general information purposes only and does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Those analysis are already being done by highly specialized analysts, both from a bullish and a bearish perspective. California turns to superheroes to help dispel EV myths. Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Fernando created Your Green Wealth to help investors find sustainable investing options. Currently, the company’s cells use nickel-rich cathode materials and contain less Cobalt than any other widely used cathode chemistries in the EV sector. In particular, the issue of child labor has driven as much skepticism from critics as nearly any other topic. Through this system, the recovery of critical minerals will be maximized along with the recovery of all metals used in Tesla battery cells, such as copper, aluminium and steel. Why this environmental impact manager won’t invest in Tesla, even if it makes him underperform. The financial firm had actually been calling for Tesla to release an environmental impact report since 2017, which was around the same time when reports and … (Credit: Tesla), Tesla addresses Zero-Cobalt future in latest Impact Report, Human Rights and Conflict Minerals Policy, eventual phasing out of Cobalt from the batteries, SpaceX’s Starship Super Heavy booster needs a custom assembly tower, Tesla Robotaxi takes a step forward with latest “Car Access” feature. Home | ESG | Is Tesla Sustainable? We will also assess how well Tesla is fulfilling its mission: “Tesla’s mission is to accelerate the world’s transition to sustainable energy. The financial firm had actually been calling for Tesla to release an environmental impact report since 2017, which was around the same time when reports and … The automaker plans to eventually produce a zero-cobalt battery for its vehicles and energy products, in its bid to source metals in a responsible fashion that maintains not only the integrity of the company but also the human rights of those involved in the sourcing of raw materials. It cames from 20% in 2006 to 62% in 2020. According to Fueleconomy.gov, Tesla Model 3 (2020) has the highest efficiency, reaching 141 MPGe. Although many of the company’s direct suppliers obtain some raw materials through sub-contractors, Tesla conducts due diligence practices that maintain the safety and respect of workers everywhere. 01 October 2020. Workers at Tesla factories: Tesla labor management is not good either. Tesla's mission is to accelerate the world's transition to sustainable energy. Tesla published on Monday its first ever Impact Report, a study of the impact the company’s products and operations have on the environment and communities. Several ESG rating agencies have rated Tesla on ESG criteria. The compensation is heavily dependent on share price and market cap. Today, Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products. Our ultimate goal is to develop a recycling processes that has high recovery rates, low costs, and a low environmental impact.”. Tesla is building the Giga Berlin factory without certain permits. Cobalt, while controversial, is a crucial element in lithium-ion batteries, at least for now. However, as an automaker we need to look beyond tailpipe emissions, and evaluate the environmental impact of Tesla cars during full lifecycle, from cradle to grave. The report explicitly mentions areas notorious for child labor, especially in the field of Cobalt mining. Mining is a water-intensive process that can deplete local aquifers and impact the local ecosystem. At Tesla’s 2019 Impact Report they indicate that they are not yet recycling batteries at large volumes. It is also a fact that road transport accounts for 15% of global C02 emissions, thus by focusing on electric vehicles to eliminate tailpipe emissions, Tesla is making investments in the right direction. Tesla targets cobalt-free batteries in bid to minimise environmental impact. According to Tesla’s Impact Report, 550,000 vehicles have been sold, 10,000,000,000 miles have been driven, and more than 4,000,000 metric tons of CO2 have been saved, which, as Tesla highlights, is the “equivalent of saving emissions from being released into the environment from over 500,000 ICE vehicles with a fuel economy of 22 miles per gallon.” Tesla’s ESG risk rating is split into 2.8 points for Environmental, 17.3 points for Social, and 11.0 points for Governance. During manufacturing, EVs (electrical vehicles) have on average a higher environmental impact than conventional ICE (internal combustion vehicles). In this post, we will not analyze Tesla’s valuation, nor its stock price. Their governance is amazing …”. Cobalt supplies a battery with high-rate performance and enhances cycle stability when exposed to high levels of heat, according to ScienceMag. The transparency that Tesla provides throughout the Impact Report’s Cobalt Sourcing section shows a responsible process of mining the metal. Disclaimer: This website may use affiliate links. If you want to find and buy the best clean energy ETFs, you should be aware of the sector megatrends and mitigate risks when investing. Credit: Windell H. Oskay, Flickr Creative Commons) Tesla published its first ever Impact Report this week. Keep in mind that we may receive commissions when you click our links and make purchases. Traditional automakers usually do not perform well in ESG, due to their high emission products. Since those agencies use different criteria, we do not expect to find a complete consensus. Accidentally producing the polar opposite of Starship serial number 9 (SN9) completing a trio... Tesla recently shared some footage of its next-generation 4680 battery cells being produced. According to its product impact, Tesla has sold over 550,000 electric vehicles. Tesla outlined its goal for responsible Cobalt sourcing in its latest 2019 Impact Report, released on June 8, 2020. The increasing interest of the individuals in this industry is that the major reason for the expansion of this market”. However, while the element is still included in the current battery makeup, responsible sourcing is among Tesla’s main concerns. Is Tesla Sustainable? The report highlights the positive changes the company has made towards sustainability. They are mainly recycling pre-consumer scrapped lithium and currently working with third-party recyclers (e.g. Eventually, zero-Cobalt batteries will be introduced into Tesla’s EVs Still, a controversial subject like the sourcing of the metal requires a tedious and specific amount of verification through a series of annual third-party audits. Reading Time: 12 min A huge transition is taking place in the global energy sector. Published by Fernando on December 2020December 2020. Under a section titled “Supply Chain Introduction: Responsible Material Sourcing,” Tesla addresses and details its “Supplier Code of Conduct” and “Human Rights and Conflict Minerals Policy.” The two documents outline the company’s expectations for its suppliers and partners and require all members of the Tesla supply chain to uphold responsible and integrity-focused techniques when acquiring Cobalt. Then, it discusses its supply chain and its responsible sourcing for materials. Broader report . Tesla continues in the introduction of the report: “While many environmental reports focus on emission generated by the manufacturing phase of … Impact Report 2019; Sustainability / CSR Annual Report 2018.