Preface
The author of the article “Embedding Long-Term Wealth Creation in the Heart of the Enterprise” describes the notion of recognizing that long-term wealth creation lies in the heart of the enterprise. The public interest is served by creating long-term wealth, defined as a value that continues to yield societal benefit. In addition to wealth created by technological innovation and productivity applied to goods and services, long-term wealth implies a productive activity that at least preserves and potentially expands the stock of natural, human and social capital. A company’s well-being is inextricably linked to the well-being of the society in which it operates.
Creating Long-Term Wealth with Tesla
Tesla, Inc. is an American electric vehicle and clean energy company based in California, United States. Tesla designs and manufactures electric cars, battery energy storage from home to solar panels, solar roof tiles, and related products. Tesla strive to be the best on every metric relevant to our mission to accelerate the world’s transition to sustainable energy and each product they make must be continuously improved at each step of its lifecycle. From manufacturing to consumer use to recycling. Tesla aspires to do the right thing, and constantly looking for ways to do better.
The Impact Report
According to Tesla's 2020 impact report, in 2020, Tesla customers helped accelerate the world's transition to sustainable energy by avoiding 5.0 million metric tons of CO2 emissions. Meanwhile, Tesla's team is designing and manufacturing a complete energy and transportation ecosystem that is fully vertically integrated. By creating affordable products that work together to amplify the impact, leading to the greatest environmental benefit possible. Tesla seeks to achieve the goal through software development and continued drive to develop advanced manufacturing capabilities.
The Entire Lifetime
A vehicle’s environmental impact must include both its manufacturing and usage emissions. Since Tesla vehicles are powered entirely by electricity, their lifetime emissions are significantly lower. More than that, Tesla battery packs are designed to outlast the vehicle itself. Preparing for the future, the battery factories have already begun implementing an in-house, closed-loop recycling system that will ensure 100% of Tesla batteries received are recycled and up to 92% of their raw metals reused.
The Public Health
Electric vehicles don’t just benefit the future of our planet, they also help address preventable deaths today. Air pollution in the form of carbon monoxide, NOx, and fine particulates from burning fossil fuels causes over eight million premature deaths every year.
Put Sustainability at The Heart of Tesla
Sustainability drives people, the values, and the mission at Tesla. It also matters greatly to Tesla's stakeholder such as customers, employees and shareholders. To achieve a zero-emissions future, Tesla have implemented several programs and initiatives at its global manufacturing facilities and in the communities in which it operate.
Challenges in China
In China, much of the grid is powered by coal. So, Tesla is expecting the grid mix in China to improve dramatically over time as China remains a dominant deployer and manufacturer of renewable energy. However, in 2020, charging a Tesla Model 3 in any of its major markets is more environmentally friendly than burning gasoline.
Challenges in Supply Chain
In alignment with the mission, Tesla believes in reducing emissions upstream of its factories, including the carbon footprint of its supply chains. Tesla localized the suppliers to reduce the distance of its parts need to travel before they are assembled into the vehicles, and reduces the emissions associated with transportation. In addition, supplier localization also supports the local community and its workforce and reduces the risk of a supply disruption due to geopolitical dynamics.
Reference
2020 impact report. Tesla. (n.d.). Retrieved September 20, 2021, from https://www.tesla.com/impact-report/2020.
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