Tesla has released its Conflict Minerals Report for the calendar year ended December 31, 2022. Similar to the reports from the previous year, the document highlights Tesla’s commitment to only sourcing responsibly produced products.
Tesla notes that it implements a strict Supplier Code of Conduct, and its Global Human Rights and Responsible Sourcing policies provide an outline of the company’s expectations for all its suppliers and partners.
The “conflict minerals” referred to in its report are tantalum, tin, gold, tungsten (also known as “3TG” materials), and any derivates of the materials. With this in mind, Tesla implements strict requirements on its suppliers to ensure that 3TG materials are sourced properly.
Tesla implemented a number of pertinent strategies that it implemented in 2022 that address 3TG materials. For one, the company trained its Supply Chain Organization employees on responsible sourcing of minerals and supplier engagement related to 3TG sourcing. The training covered Tesla’s policies, supplier expectations, and how employees can support Tesla’s responsible sourcing activities. A new hire training program for Supply Chain Organization employees was also launched. The training covered the same topics as the general training program, but it was tailored to the specific roles of new hires.
Tesla also noted that it undertook serious efforts to better understand the volume of conflict minerals in its vehicles. Data from the IMDS was then used to create an internal dashboard to inform the company’s approach to responsible sourcing of 3TG materials. The company also highlighted that 2022 was the fifth year of Tesla’s social and environmental compliance audits, which follow the Responsible Business Alliance’s guidance. A pertinent section of the report about the matter can be viewed below:
“Through this program, Tesla assesses certain suppliers on issues including their management systems for responsible sourcing of minerals by commissioning third-party audits to assess conformance with the Code. We greatly expanded the scope of our audits in both the number and geographic location of suppliers who underwent these audits… In 2022, we also began piloting a Supplier Self-Assessment Questionnaire, which further includes questions related to minerals and materials in the supply chain,” Tesla wrote.
Tesla’s full 2022 Conflict Minerals Report can be viewed below.
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Keyword: Tesla releases its annual Conflict Minerals Report for 2022