Tesla told to hit the gas on diversity reporting
Tesla has now released its 2021 Annual Impact Report after shareholders voted in favour of diversity report.
Written by Grace Martin
While Tesla’s CEO and co-founder Elon Musk sets his sights on running Twitter and sending people to Mars, shareholders are making sure that his car company is doing enough for diversity and inclusion.
‘Diversity and Inclusion Report’ receives 57% support at AGM
In 2021, shareholders asked Tesla to report on how effective its diversity and inclusion efforts were.
Shareholders argued that this was important for business, given that a Wall Street Journal study of the S&P 500 (America’s largest companies) found that the 20 most-diverse companies gave shareholders a 5.8% higher return over five years than the 20 least-diverse companies.
At the time, Tesla asked shareholders to vote against this proposal; it claimed it was already sharing enough diversity information in its annual Impact Report.
How did shareholders vote?
The votes rolled in at the Tesla 2021 AGM, and 57% of shareholders supported the proposal, making it one of the two proposals that were approved.
On the Tumelo platform, shareholders voiced their thoughts on the issue, with 85% of voters supporting this proposal.
🗣️Tumelo users voted 85% in favour.
🗣️Their fund managers voted in favour at Tesla’s AGM.
🗣️Tesla shareholders voted 57% in favour.
You’ve done your bit, do you think Tesla’s done theirs❓️
What’s the story one year on?
Seven months after the proposal was passed, Tesla released its 2021 Impact Report.
This report revealed that:
- 62% of Tesla’s US workforce belong to underrepresented groups.
- LGBTQ+ employees receive personal assistance service benefits.
- 1,200 students participated in ‘Introduce a Girl to Engineering Day’, a virtual event showcasing career pathways and Tesla female engineers.
The shareholder that submitted the proposal later praised Tesla’s disclosure of workforce diversity data, stating: “I think they’ve fully embraced operational excellence, which is really what ESG is all about.”
This report may have addressed the proponent’s concerns, but while the report was being written, Tesla was hit with more DEI controversy.
Racism lawsuit
In February 2022, California sued Tesla for ‘rampant racism’ against Black employees. For example, there were claims that Tesla was slow to clean up racist graffiti, including ones with swastikas, KKK, the N-word and other hate symbols that were drawn in common areas and on the factory machines.
The same shareholder that praised Tesla also responded to this lawsuit, stating that it is “another proof point”, proving that the issue of allegations of racist behaviour is “a very serious one”.
If you have access to Tumelo, head over to your account and get voting! If not, ask your employer or pension provider for Tumelo and join others in reclaiming your shareholder rights 💪
