Dear EarthTalk:

Is Tesla the world’s greenest large company given its product line, use of renewable energy and innovations in manufacturing efficiency?

Tim M., Fairfield, CT

While it’s hard to say which large company is the world’s “greenest,” Tesla, known for its electric vehicles (EVs) and renewable energy solutions as well as for promoting sustainability and reducing environmental impact, certainly would be one of the contenders for such a title.

Tesla's product line, which includes electric cars and trucks, energy storage systems, solar panels and roof tiles, and now even green tiny homes, aims to reduce dependence on fossil fuels and lower greenhouse gas emissions associated with transportation and energy production. By promoting the adoption of EVs, Tesla seeks to contribute to reducing air pollution and addressing climate change.

In addition to its products, Tesla has also made efforts to use renewable energy in its operations. For example, the company has built large-scale solar energy installations and has invested in solar panel manufacturing. Furthermore, Tesla's Gigafactories, which are used for manufacturing batteries and other components for EVs, are powered by renewable energy sources such as solar and wind.

Tesla has also been recognized for its innovations in manufacturing efficiency, such as its use of automated production processes and advanced technologies in its factories. These efforts are aimed at optimizing energy usage, reducing waste, and improving overall environmental sustainability.

However, it's important to note that sustainability and environmental impact are complex issues, and evaluating the “greenness” of a company requires considering various factors beyond just its product line, use of renewable energy, and manufacturing efficiency. Factors such as the entire supply chain, labor practices, waste management and social impact also play a role in determining a company's overall sustainability performance.

So where exactly does Tesla stack up? The non-profit As You Sow ranks the pioneering EV maker at #5 on Clean200, its global list of large companies ranked according to sustainability criteria. Apple tops the list at #1, with Alphabet (parent company of Google), Deutsche Telekom AG and Verizon filling in the other top spots in front of Tesla. As You Sow updates this list every year based on the most current data on each company’s so-called “clean” revenue, that is, income derived from green, non-polluting sources. 

Whether Tesla can rise above #5 next year is anybody’s guess, but it’s rise on the Clean200 list may be worth betting on given its #9 listing in 2021 followed by #6 in 2022. And this past March, Tesla shocked the business world at its 2023 Investor Day by unveiling not a newer, more affordable Tesla-for-the-masses as expected but instead a master plan to use the company’s evolving suite of products and marketing platform to help steer the world away from fossil fuels once and for all. 

According to Tesla founder Elon Musk, switching over from fossil fuels to renewable energy globally would cost $10 trillion, less than the world would spend on fossil fuels over the timeframe it will take to transition. “Earth can and will move to sustainable energy, and it will do so in your lifetime,” Musk told investors.

CONTACTS

• Tesla, tesla.com;
• Clean200, asyousow.org/report-page/2023-clean200-investing-in-a-clean-energy-future.