Tesla aims for net-zero emissions, but its pollution levels increased in 2023. The company's latest impact report reveals a significant rise in greenhouse gas emissions, with an increase of almost 10 million metric tons of CO2 last year.
In an aerial view, Tesla car sits parked in a lot at a Tesla service facility on April 24, 2024 in Fremont, California. (Photo : Justin Sullivan/Getty Images)
Uphill Battle of Tesla Towards Net-Zero Emissions
Despite its strong commitment to sustainability and efforts to cut emissions through electric vehicle production and renewable energy projects, The Verge reported that the data also underscores Tesla's challenges in achieving its net-zero ambitions while expanding its operations and production capacity.
This report offers the most comprehensive insight so far on Tesla's perspective on climate-related risks and its own carbon footprint. The increase in emissions highlights the conflict between the company's rapid growth and its environmental goals, pointing to the need for continued innovation and investment in greener technologies and practices.
Tesla's carbon dioxide emissions surpassed 50 million metric tons in 2023, up from just below 42 million metric tons in the previous year. This marks an approximate 20 percent rise in pollution.
This increase is primarily due to Tesla's supply chain, with nearly 80 percent of the company's total carbon footprint attributed to the goods and services it procures.
The report states the company's commitment to achieving net-zero greenhouse gas emissions "as soon as possible" and details the measures it intends to implement to achieve this goal. It also cites some of the risks the company faces due to climate change.
However, the report reveals an increase in pollution within Tesla's supply chain over the past year. Dirty supply chains typically constitute the largest portion of a company's carbon footprint, prompting environmental advocates to urge regulators to take action on those emissions.
Tesla appears to be proactively aligning with forthcoming Securities and Exchange Commission (SEC) regulations, which demand increased transparency regarding climate change. In its 2022 proposal, the SEC aimed to mandate that large companies disclose indirect emissions from their supply chains and product usage.
However, companies swiftly opposed this proposal, arguing that these emissions are the hardest to manage. As a result, this requirement was excluded from the climate regulations finalized by the SEC in March.
According to the finalized rules, which are currently facing legal challenges, large companies are still required to disclose data on carbon emissions from their direct operations and energy consumption, provided these emissions are considered "material" or crucial for investors to understand the company's financial health.
According to the company's latest report, Tesla's 2023 sustainability assessment aimed to identify critical areas impacting both the business and society at large. This evaluation identified 20 key "focus areas," such as climate risk management, air quality, water use, responsible AI, and worker health and safety.
The information Tesla is now sharing about its operations is vital because it will be crucial for holding the company accountable to its plan of reaching net-zero emissions. But some important things are still missing, like a clear plan with dates for reducing pollution.
This seems to be the first time that Tesla has said in a report that it aims to achieve net-zero greenhouse gas emissions across its entire product lifecycle, from when products are made until when they're recycled. The report also says Tesla wants to use renewable energy for all its operations, which it already does for its Supercharger stations.
