Tesla opposes proposal for additional human rights reporting

Tesla's Board of Directors have opposed a proposal by a shareholder for additional reporting on human rights, as it follows from the company’s statement on the agenda of the 2021 Annual Meeting. The directors said the call for additional reporting on human rights appears to be an appeal to sensational headlines and exaggerated allegations. They recommended voting against the proposal.
Tesla's shareholder Sisters of the Good Shepherd New York Province had notified the company that it intends to submit a proposal at its 2021 AGM to commission an independent third-party report assessing the extent to which Tesla is fulfilling its responsibility to respect human rights and engage in responsible sourcing practices. 
The Sisters of the Good Shepherd congregation justified its intention saying that Tesla’s poor human rights performance suggests its human rights commitments are neither effectively implemented, contributing to positive human rights outcomes, nor ensuring access to remedy.
As a case in point, Sisters of the Good Shepherd New York Province cited Tesla's supply of cobalt from Glencore’s mines, “where child labour is pervasive”; Russian indigenous activists’ request to Tesla not to source nickel from Norilsk Nickel “until it remediates devastating environmental, cultural, and economic harms from a major oil spill that impacted the traditional territory and livelihoods of Indigenous People”; Tesla's obstruction of union organizing and ongoing lawsuits alleging racial harassment and discrimination, as well as Tesla's violation of its employees' right to a safe and healthy workplace.
Tesla's Board of Directors considered this proposal and determined that it would not serve the best interests of Tesla or its stockholders. The Board of Directors issued a statement saying that “indeed, the proponent’s justification for additional reporting on human rights appears to be an appeal to sensational headlines, ongoing legal proceedings and exaggerated allegations about workplace issues and practices, which we strongly dispute”.
Tesla, in particular, emphasized that to date, the company has not identified any instances of such human rights violations in its cobalt supply chain mentioned by the Sisters of the Good Shepherd congregation.
As for the open letter from an interest group requesting Tesla to refrain from sourcing from Norilsk Nickel, the Board of Directors said in its statement said that “Tesla has never entered into any agreement with Norilsk Nickel.”
On the issue of labour law, Tesla's Board of Directors said: “The proponent vaguely alleges harassment, discrimination, retaliation and the prevention of organizing. At best, these are the subject of proceedings that have not been finally adjudicated and at worst, are unsubstantiated and sweeping generalities.”
Noting that it has proactively and quickly responded to the COVID-19 pandemic, Tesla stressed that it prioritizes the health and safety of its employees and has never received any willful OSHA citations despite the significant scale of its manufacturing operations.
“Tesla remains confident in our efforts and commitment to human rights in our operations, and that our publicly available policies and periodically updated disclosures already provide robust and transparent information on these matters,” the company's Board of Directors concluded recommending a vote against the stockholder proposal regarding additional reporting on human rights.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished