Tesla, Inc. Presents at Milken Institute Asia Summit 2020, Dec-10-2020 08:30 AM - NasdaqGS:TSLA

NasdaqGS:TSLA

** Summary of Executives' Statements**

ESG and Purposeful Capitalism: ESG is a set of tools and methodologies, while purposeful capitalism is a set of theories and philosophies. The conversation has evolved from tools to philosophy, broadening the aperture beyond a narrow definition of ESG.
ADB's Role: Institutions like ADB have extraordinary legitimacy and convening authority, which can produce consensus on both philosophical and practical levels of ESG.
Purposeful Capitalism in Emerging Markets: In emerging markets, private enterprises often have a broader sense of responsibility towards society, unlike in developed markets where moral obligations have been equated with legal obligations. This sense of responsibility is crucial in times of crisis.

GPIF and ESG: As the Chief Investment Officer of GPIF, he pushed for ESG integration. The challenge was to overcome the belief that financial return and social/environmental considerations are mutually exclusive.
Long-Term Perspective: GPIF's long-term investment horizon and large, diversified portfolio necessitated a focus on systemic performance, not just portfolio performance.
Investment Opportunities: Tesla is seen as both a digital transformation and sustainability transformation company, aligning with ESG principles. Opportunities lie in companies that combine digital and sustainability transformations.

Private Equity and ESG: Private equity firms focus on bottom-up ESG practices, identifying and implementing ESG-centric theses. ESG has evolved from risk management to return-generating initiatives.
Challenges and Solutions: Balancing ESG initiatives with economic considerations, especially in challenging environments like COVID-19. Engaging management and employees is crucial for successful ESG implementation.
Data and Measurement: Standardization and achievable KPIs are essential for measuring ESG impact. Continuous dialogue and feedback from LPs and other GPs help improve data quality and reporting.

IFC and ESG: ESG is integral to IFC's mandate and activities. The World Bank Group plays a significant role in creating incentives for both public and private sectors to adopt ESG principles.
Nonfinancial Additionality: IFC ensures that projects comply with ESG principles throughout their lifecycle, contributing to a public good.
Innovations in ESG: Focus on impact investment, making ESG more dominant in capital markets, and standardizing ESG practices to avoid greenwashing and ensure transparency.

State Street and ESG: State Street's role includes research, asset stewardship, providing ESG-compliant investment solutions, and developing ESG analytics.
Data Challenges: Standardization and consistency in ESG data are crucial. State Street is working on aggregating and providing multi-source, multi-provider ESG analytics.
Technology and Tools: Technology is key to aggregating information and providing open architecture models for institutional investors. State Street aims to facilitate the transition to ESG-friendly investment policies.