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"We're not in the desert" #ElonMusk joked about water concerns at Tesla's Gigafactory in Brandenburg. Now, water issues have become the primary reason the plant isn't fully operating, costing the company #billions. Nature and biodiversity can seem complex and abstract, so here’s another story that emphasizes the critical need for companies to manage nature-related risks. 🚗 No Water, No Cars Tesla's Berlin Gigafactory faced significant hurdles due to groundwater shortages. Despite efforts to reduce water usage, the factory's high demands triggered opposition from environmental groups, concerned, among others, about regional drinking water shortages. The Brandenburg state granted a licence to supply 1.4 million cubic metres of groundwater annually to Tesla, but climate change and recent droughts severely stressed the region's water reserves. The water shortages led to production delays, with Tesla reaching only half its intended capacity and putting $5.7 billion at risk. Public complaints contributed to a 3.1% drop in Tesla #shares in February 2022, part of a larger 19% decline early in the year. In response, Tesla implemented water-saving measures like optimising water-intensive processes and recycling rainwater. 🌲 Deforestation Concerns Tesla's Gigafactory also caused the deforestation of 329 hectares (3.29 km²; 500,000 trees), reflecting the negative environmental impact of site expansion. “Not so fun” fact: The lost trees were equivalent to about 13,000 tonnes of CO2, the annual emissions of 2,800 average internal combustion engine cars in the US. This case highlights the #financial and #reputational risks of neglecting nature in business planning. Read more abut this case and other cases in our Whitepaper: https://lnkd.in/dBQmxg78 Have you encountered similar examples? #naturerisk #businessrisk #sustainability #Tesla #NalaEarth

Hampus Jakobsson

General Partner at Pale blue dot

3mo

Water is such a strange "commodity" - abundant and considered "free" but running out and the reason for many wars!

Anna Alex

Entrepreneur & Investor with Focus on Sustainability, Biodiversity and Nature | Co-Founder Nala Earth / Planetly / Outfittery | SPIEGEL Bestselling Author

3mo

such a clear case of our businesses being directly dependent on Nature! Thank you Tesla for this 😅

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Oliver Dauert

Biodiversity Builder | I empower you to build a wilder world | Founder of Wildya & Wild Business Mates | Linkedin Top Green Voice

3mo

Fantastic and practical case study. No Water, No Cars. Keep them coming Nala Earth!

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Ben Mitchell

Natural Capital Analyst | Biodiversity | Nature-related Risk

3mo

Gerhard Mulder maybe an interesting example for the nature course !

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