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Nikola Sustainability Impact Report 2023

Nikola Sustainability Impact Report 2023

“Nikola’s commitment to sustainability is not just trendy or a nice-to-have, it’s who we are, full stop.” -Steve Girsky, President and CEO, Nikola

Our Approach to Sustainability

Nikola Corporation’s mission is clear: We are leading the way for a zero-emission world, starting with the transportation industry. As an integrated truck and energy company, Nikola is transforming commercial transportation, with our Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and our energy brand, HYLA, driving the advancement of the complete hydrogen refueling ecosystem.

Nikola was founded to address one of the largest sectors contributing to the acceleration of climate-change: transportation emissions. The future is important to us and so are the health and safety of drivers and the communities where class 8 trucks operate. We know zero tailpipe emission transportation is possible. It’s already out there. Now we aim to create impact at scale throughout the transportation industry. See why it matters: Why Sustainability Matters in Class 8 Semi-Trucks – Nikola Corporation.

Materiality

In 2022, we hired a third-party partner, Nasdaq Corporate Solutions, to conduct a materiality assessment. The assessment included a structured process that gathered input from across the organization.

Using the results of the assessment, we have developed meaningful reporting, management programs, and identified key metrics. Periodically we will conduct a materiality review of our priority environmental, social and governance (ESG) topics to ensure we are focused on topics of the greatest significance to Nikola’s business and stakeholders

Environment

Nikola’s motto, “follow none”, is a mantra that defines our pioneering spirit. With no road map to follow and no blueprint, we have developed world class technologies that push the boundaries of what was believed to be possible and have brought technologies into existence that are meant to transform century old methods of how we transport goods and products. In every way, we transform what Class 8 transportation should look like, pushing the boundaries on range and efficiency, technology and design. Our Nikola FCEV continues to delight fleet users with data-driven quality and performance.

To date, our FCEV end fleets have traveled more than 550K miles with an average fuel economy of 7.2 mi/kg, validating our performance benchmark. We collect field data every day and the numbers bear out. On a converted basis, our FCEVs outperformed the average Class 8 truck on fuel economy and avoidance of tailpipe emissions. We estimate the FCEV’s average miles per gallon (mpg) is 23% better than the Class 8 fuel economy average of 6.5/diesel gallon equivalent (DGE) per the Department of Energy.

Greenhouse Gas Emissions

We understand that climate change poses risks and being proactive presents opportunities for our business to mitigate the potential impact to our operations. Nikola looks at several indicators, relevant to our business, to understand our progress against alleviating risks. To mitigate potential risks and capitalize on opportunities, Nikola has taken the following actions:

▪ Investment in clean technology and innovation

▪ Measurement and identification of emission sources

▪ Investment in renewable energy and energy efficiency in operations

▪ Installation of electric vehicle charging infrastructure for Nikola vehicles and employees

▪ Application of circularity principles and diversion methods to improve waste diversion performance

Social

Execution of our business strategy depends on the successful execution of our people strategy, including the attraction, development and retention of key employees and members of our management team.

We actively seek to manage internal talent mobility through promotions and new assignments to create a high-performing employee base with diverse experiences. We have implemented methodologies to manage individual performance, development, and feedback. We hold regular team and company-wide town halls to provide employees with ongoing exposure to leaders across the company, key business developments, and status of product and project milestones. These forums enable employees to learn more about our business beyond their immediate day-to-day roles while providing an opportunity for them to ask questions and seek answers to any concerns.

Approximately:

▪ 60% of workforce is ethnically or gender diverse

▪ 50% of workforce is non-white ethnicities

▪ 98% of employees received regular performance and career development reviews

Employee Health and Wellness: Nikola provides employees with a comprehensive health benefits package that includes medical, dental and vision coverage with one medical option being a fully employer paid high deductible medical plan with a generous HSA contribution.

Diversity, Equity, and Inclusion: We embrace the diversity of our team members, customers, and stakeholders, including their unique backgrounds, experiences, perspectives, and talents. We are committed to providing an environment where human dignity prevails.

Employee Safety: Safety is critical in both our operations and in our products at all phases of production, testing, validation, and use. We have implemented a health and safety management system, steered by the Head of Environmental Health and Safety as well as our Safety Officer.

Fuel Cell Electric Vehicle Safety: Nikola trucks are equipped with Lane Departure Warning, Adaptive Cruise Control, Advanced Emergency Braking, Blind Spot Information/Warning System, and Front and Rear Cameras. These features enable drivers to be more aware and improve safety, meaning they get to go home safely to their families.

Hydrogen Modular Refueler Design and Safety: Hydrogen modular refuelers are designed to be deployed at customer demonstration sites, testing and validations facilities, and HYLA locations to support the fueling of fuel cell electric vehicles. The modular refueler equipment deployed is a third party solution, designed to comply with regulatory requirements and industry standards to ensure safety throughout the fueling process.

Governance

We strive to be a leader in corporate responsibility and demonstrate our values through responsible business practices. Our corporate governance is guided by a Code of Business Conduct and Ethics, and a Code of Ethics for Senior Financial Officers, which are both publicly available on our website. Ethics policies are supplemented by workforce training courses on ethical standards, and an Ethics and Whistleblower program available to all employees to anonymously report concerns about fraud, ethical misconduct, harassment, misappropriation of assets, or questionable financial reporting practices.

Any concerns regarding accounting or auditing matters reported under these procedures will be communicated promptly to our audit committee. Current governance frameworks were designed to uphold the highest principles of business ethics and practice appropriate oversight of business responsibilities throughout every level of the organization.

Product Circularity

In a circular economy, products and materials are kept in circulation long after first use, with an emphasis in designing for longevity and resource efficiency. Nikola is committed to participating in circular economy principles for the responsible handling of truck components, battery components and materials in our vehicles at every stage of their lifecycle. We are developing solutions and collaborating with partners to plan for end-of-life materials streams, despite our modern production timeline. We have a battery circularity policy which guides our investigation of all pre-consumer and production batteries for remanufacturing, reuse and recycling.

We believe extending the useful life of a battery on board the truck, is the most sustainable solution. Therefore it is our priority to ensure the asset’s life is extended before ever being scrapped. The advanced software on board Nikola vehicles allows for over-the-air (OTA) software updates to be released as appropriate to improve battery efficiency and increase longevity.

UN Sustainable Development Goals