EV MakerNASDAQ: TSLA

Tesla

56Mixed / Improving

Austin, TX, USAFounded 20030 followers

www.tesla.com

US-based pure-play EV manufacturer producing passenger cars, SUVs, and trucks with no ICE vehicles, and the world's leading vertically integrated EV brand by deliveries.

Green Score

56/100
Mixed / Improving
Greenwashing risk
medium
Data confidence
high
Method
how it is calculated
Climate Impact & Solution35%88

Does the core business genuinely avoid or reduce emissions, or build climate resilience? Share of revenue that is actually 'green'. Fossil-dependent models score low.

Tesla's products directly displace ICE combustion: in 2024 customers avoided ~32 million MTCO₂e — a 60% year-on-year increase — through EVs, solar, and energy storage, representing genuinely large-scale, measurable avoided emissions.

Decarbonization & Targets20%32

Credible, science-based targets (SBTi), a real net-zero plan with progress to date, and CDP disclosure — not just a dated press release.

Tesla has no SBTi-validated targets, no published formal net-zero commitment year, does not fully disclose all 15 GHG Protocol Scope 3 categories, and Net Zero Tracker notes it lacks a publicly available implementation plan with a reporting mechanism — making its stated net-zero ambition structurally weak versus peers.

ESG & Operations15%38

Operational footprint, labour and social practices, and governance quality across the company's own operations and supply chain.

Tesla is the only major Western automaker with no collective bargaining agreement globally, no published living wage commitment, an Indigenous Peoples' rights score of 26%, a Delaware-court-criticized $56 billion CEO pay package with a board flagged as insufficiently independent, and an MSCI ESG rating downgraded to BB — below some tobacco companies.

Transparency & Verification15%52

Quality of disclosure, independent third-party verification, and how much hard data backs the company's claims.

Tesla publishes an annual Impact Report aligned with GRI standards and became the first automaker to disaggregate Scope 3 emissions by material category (steel, aluminum, batteries), but its GHG data lacks independent third-party assurance, key social metrics such as injury rates are not broken down by factory, and the company publicly criticizes GHG reporting frameworks — limiting the credibility of its disclosures.

Integrity15%35

Controversies, litigation, pollution, fossil-fuel lobbying, conflict-zone involvement and governance scandals. Higher means cleaner.

Tesla faces a high volume of serious integrity controversies: multiple fatal Autopilot/FSD lawsuits with nine-figure jury verdicts, NHTSA audits for delayed crash reporting, cobalt supply chain child-labor risk flagged by Human Rights Watch, a Delaware court-voided CEO pay package re-ratified under governance concerns, alleged wastewater pollution at the Texas Gigafactory, and California regulators pursuing false advertising claims over FSD capabilities.

TSLA· NASDAQ
USD 298.32▼ 7.12%

Updated 7/30/2026

Why it's on ClimateTicker

Tesla's core business — selling zero-tailpipe-emission vehicles, battery storage, and solar products — delivers genuine, measurable climate mitigation: customers avoided ~32 million MTCO₂e in 2024 alone. However, the company lacks SBTi-validated targets, has no formal net-zero commitment year, and carries material governance, labor, and supply-chain integrity gaps that temper its credibility as a sustainability leader. Investors should separate the strong product-level impact from the weaker institutional climate governance.

mitigationTesla generates revenue primarily by designing, manufacturing, and selling battery-electric vehicles (Model 3/Y/S/X/Cybertruck) plus energy generation and storage products (Megapack, Powerwall, Solar Roof); it supplements this with software/services, regulatory credit sales, and a growing charging network.

Commitments & Certifications

Controversy & Greenwashing Watch

highAutopilot/FSD Fatal Crashes & Nine-Figure Verdicts

Multiple fatal crashes linked to Tesla's Autopilot and FSD systems resulted in jury verdicts exceeding $329 million (Miami) and $240 million (Florida 2025), with ongoing NHTSA audits for delayed crash reporting and a California class-action over FSD false advertising cleared to proceed.torhoermanlaw.com

highElon Musk $56 Billion Pay Package — Board Independence Failure

A Delaware court voided Musk's $56 billion compensation as engineered by a conflicted board; Tesla put it to a re-vote in May 2024 rather than renegotiate, drawing widespread criticism from proxy advisors and institutional investors over governance quality.governancelab.org

high2 Million Vehicle Autopilot Recall & NHTSA Investigation

NHTSA found Tesla's Autopilot controls insufficient to prevent driver misuse, forcing a recall of ~2.03 million U.S. vehicles and opening a further probe after post-recall crashes continued; Consumer Reports said the fix addressed only minor inconveniences.insurancejournal.com

mediumTexas Gigafactory Wastewater Pollution Allegations

Tesla has not published a responsibility identification or rectification explanation for alleged wastewater pollution incidents at its Texas factory, and injury-rate data are not disclosed at the factory level.ijgem.org

mediumIndigenous Peoples' Rights Score of 26%

The Lead the Charge 2024 benchmarking report identified Tesla's Indigenous Peoples' rights performance at only 26% — its worst-scoring ESG category — with no year-on-year improvement despite prior flagging.thesustainableinnovation.com

mediumNo Collective Bargaining Agreements Globally

Tesla remains the only major Western automaker without a single collective bargaining agreement anywhere in its global workforce, and holds no published living wage commitment, exposing it to ongoing labor-rights divestment screening.thesustainableinnovation.com

mediumMSCI ESG Rating Downgraded to BB

MSCI downgraded Tesla's ESG rating to BB — below some tobacco companies — following rejected ESG shareholder proposals at the 2024 AGM and the CEO's public disparagement of ESG frameworks.ijgem.org

highCobalt Supply Chain — Child Labor & Audit Opacity

Human Rights Watch found Tesla lacks adequate traceability and audit transparency for cobalt sourced from the DRC, where child labor and dangerous conditions are documented, creating non-compliance risk under due diligence standards.studocu.vn

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