1

Environmental, Social, and Governance Report

2021

2
Table of Contents
01 A Path Forward to a Sustainable Future
02 Letter from Our CEO
03 TuSimple at a Glance
04 United Nations Sustainable Development Goals (UNSDG)
05 Environmental
06 Social
07 Governance
08 UNSDG Mapping
09 Conclusion
10 Disclaimer

3

01 A Path Forward to a
				Sustainable Future
TuSimple’s 2021 ESG Report highlights our company initiatives which
contribute to the environmental, social and governance (ESG) growthand impact of our business within our community. This report isintended to provide a high-level overview of TuSimple’s approach toand progress with key ESG issues.

All information and data, unless otherwise stated, is as of December 31, 2021.

402 Letter from Our CEO
It has been over two years since the pandemic began, and lingering challenges remain for the global community. There has
never been a clearer sign that innovative solutions are required to build a brighter future together and we as a community canrise to discover them. I couldn’t be prouder of how TuSimple has not just weathered the storm but succeeded throughout the
many difficulties the pandemic brought. As a company, we became the first autonomous driving company to go public–raisingaround one billion in capital, completed the world’s first fully driverless semi-truck run on open public roads, and scaled ourAutonomous Freight Network (AFN) significantly to both meet rising demand and accelerate our growth.
Since I founded this company with Mo Chen in 2015, the TuSimple team has shared a united vision to improve the world
through our technology. This starts with solutions that make the trucking industry safer and more efficient, but we recognizethat our responsibilities to the communities we serve reach well beyond our technology and its operational design domain.
We’re conscious of the role TuSimple plays as a leader within our industry and a member of the global community. As part of anindustry that is responsible for 24% of the United States’ transportation-sector greenhouse gas emissions, we believe we havea responsibility to help turn the tide on carbon emissions and make strides towards developing a sustainable world. Our team at
TuSimple is focused on pursuing ways to create a sustainable future for both our company as well as our community. Throughconsideration of these impacts on the environment and society, TuSimple strives to better serve the long-term interests of ourcustomers and the communities where we operate.
As we work to bring about transformational change to the logistics industry, we do so with a commitment to support
our communities through responsible corporate governance. In building a new autonomous freight ecosystem, we’re making
significant gains in the areas of safety, fuel efficiency, and environmental impact while expanding operations and creating newjobs along the way. I’m excited about what the future holds and confident that the strong foundation we’re building will see ourbusiness, our communities and our industry prosper for the next decade and beyond. Moving forward we will continue to makedecisions for the greater good and embrace opportunities to invest in the future and make impactful change where we can. I
invite you to follow our progress as we break new ground and do our part to make a positive impact on the world in which we live.
The TuSimple mission is to make long-haul trucking safer and more efficient, creating significant benefits for all thecommunities our freight ecosystem serves. We are thrilled to publish our second annual Environmental, Social, and Governance(ESG) Report that details our vision and progress towards this goal.

Dr. Xiaodi Hou
Co-Founder and CEO, TuSimple

5

03 TuSimple at a Glance

03.01 Our Mission
Through our Autonomous Freight Network (AFN), TuSimple iscommitted to bringing the most safe, fuel-efficient, & low-costfreight capacity to market combining the best L4 autonomous
technology, hardware, and go-to-market strategy.

603.02 TuSimple Partnerships
Premier Global OEM Partnerships

Autonomous Domain
Controller (ADC)

Design, Test, and Production of theAutomotive Grade L4 Semi-Truck

AV Edge Computing Platform
in Development with NVIDIA

Top Tier Downstream Partners

Supply Base Partners

703.03 TuSimple Statistics*

~100

~75

6.3 million

fleet trucks
globally

fleet trucks
operating in the USA

road-tested
miles

6,975

387

1,000 mproduction semi
trucks reserved

global patents

camera perception*All information and data, unless otherwise stated, is as of December 31, 2021.

803.04 Our Core Values
As a leader in the autonomous driving space, we hold true that there are core behaviors and beliefs thatmake our mission successful, our teams stronger and our culture vibrant. We have memorialized thesebehaviors and beliefs in a set of five core values for which we strive to hold ourselves and each otheraccountable.

Safeguard

Own

Communicate

Collaborate

Innovate■ 	
Safeguard can be embodied in every decision made, when actively seeking to holistically assess asituation and mitigating the risks associated. If any concerns exist, they are raised -- because it’s theright thing to do.
■ 	
Own represents taking or acknowledging full responsibility for one’s work and impact -- and toalways act with the bigger picture in mind.
■ 	
Communicate means to take the initiative to share and exchange information, news or ideas, and toensure that one adapts to and seeks to understand their audience.
■ 	
Collaborate means truly listening to and considering teammates’ perspectives, and building
respectful and trusting relationships.
■ 	Innovate means to break every rule while remaining loyal to first principles.

04 United Nations Sustainable				 Development Goals (UN SDGs)

9

The UN SDGs are a set of 17 global goals adopted at the UN in September 2015 and are aimed at transforming our world
by 2030. They are an urgent call to action for public, private and social sectors to come together in global partnership.
The UN SDGs serve as a strategic tool that engages stakeholders, supports sustainable decision-making processes, andattracts investment. They also include tackling ESG issues, such as gender equality and human rights.
We believe that we can contribute to our communities by making long-haul trucking safer, more efficient, and moresustainable. In line with TuSimple’s current business and operations, there are 9 UN SDGs that are threaded among
many of our initiatives. A mapping of our initiatives to these 9 UN SDGs can be found in Section 8 of this document.

10

05 Environmental Topics

At TuSimple, we are dedicated to making autonomous trucking more environmentally friendly. Sustainability is core to
our commercialization strategy and product development process. Beyond our internal initiatives described in further
detail below, we have also engaged with our various partners to conduct studies that have uncovered industry-wide
benefits ranging from increased fuel efficiency, reduced greenhouse gas emissions, and fewer hours spent by truckers
on driving empty miles and idling in the cabs. We have published our research and findings in a white paper titled “ThePotential Environmental and Social Impacts of Autonomous Trucking.”

1105.01 Fuel Efficiency
In a study conducted by the University of California San
Diego (UCSD), our virtual driver has proven to be 10%
more fuel efficient than trucks operated manually.
By testing our system over 160,000 miles in real-world
conditions for the UPS North American Air Freight
Services, we have been able to exceed the alreadysubstantial fuel savings data observed in the study
conducted by the University of California San Diego. Our
TuSimple autonomous driver delivered over 13% fuelsavings compared to human drivers when operated in
the optimal long-haul operating band of 55 to 68 miles
per hour.
These savings illustrate the significant positiveenvironmental impact autonomous trucking can haveon the transportation industry. Since reducing carbon
emissions is integral to the TuSimple mission and to
our customers, we will continue to prioritize learning
even more about how our trucks can positively impact
the environment and provide additional autonomous
technology benefits.

10% increased fuel efficiency with
Autonomous Technology(study conducted by UCSD)

12
05.02 SmartWay Certification
SmartWay is a voluntary public-private partnership run by the Environmental Protection Agency (EPA), which seeks to help the freighttransportation sector improve supply chain efficiency and reduce transportation-related emissions.

TuSimple is one of the first autonomous trucking companies
to be recognized as a SmartWay Certified Carrier in 2018

TuSimple has demonstrated our commitment to reducing harmful emissions asa global leader in freight sustainability by becoming one of the first autonomous
trucking companies to be recognized as a SmartWay Certified Carrier in 2018.
TuSimple has remained a SmartWay Certified Carrier since 2018 and in 2021,
TuSimple was recognized on the SmartWay High Performer List, placing in thebest-performing range for CO2 emissions across all SmartWay partners. Basedon our 2020 emissions data, we are already in compliance with the EPA’s Phase 2
benchmark for 2021, as illustrated by Figure 1.

Figure 1: EPA Phase 2 CO2 reductions (Eaton)

05.03 Enabling our Employees to Reduce					 their Carbon Footprint
At TuSimple, we work to ensure that sustainability is an integral and essential part of the day-to-day
work experience for our employees. Since 2020, we have reduced the environmental impact of ouroperations by:■ 	
Certified as Leadership in Energy and Environmental Design (LEED) Silver by
the U.S. Green Building Council for our San Diego headquarters. To achieve LEED
certification, a company earns points by adhering to prerequisites and creditsthat address carbon, energy, water, waste, transportation, materials, healthand indoor environmental quality. Following a verification and review process,companies are awarded points that correspond to a level of LEED certification.
■ 	
Incorporating sustainable practices into the design of our operations center in
Tucson. We designed our building systems to exceed typical values required bycode. Additionally, the high-efficiency lighting and optimally rated SEER HVAC
packages will lower the overall energy consumption of our Tucson building
compared to others of a similar type.
■ 	
Being recognized as an ENERGY STAR partner by the U.S. Environmental
Protection Agency (EPA). ENERGY STAR recognizes sustainability efforts forboth tenants and buildings with the understanding that energy efficient officespaces can lead to lower utility bills and fewer greenhouse gas emissions in ouratmosphere.
■ 	
Providing electric vehicle charging stations at our San Diego Office to reduce
employee commute emissions. Plans have also been made to have electricvehicle charging stations installed at our Tucson Facility in 2022.
■ 	
Making plans to add covered solar parking installations for electric vehicles at
our Tucson Facility. This is expected to be completed by the end of 2022.

13

05.03 Enabling our Employees to Reduce their Carbon Footprint (cont’d)■ 	
Developing and implementing a Public Transportation Reimbursement Program toencourage employees to use alternate means of transportation when commuting to andfrom work. This program promotes air quality, reduces traffic congestion, and conservesenergy by reducing the number of single-occupancy vehicles on the road for employees
commuting to our San Diego office. Employees working in areas served by masstransit—including rail, tram, bus, or other commercial transportation licensed for publicconveyance—are eligible for $40 per month reimbursement for their monthly public
transit passes.
■ 	
Promoting recycling by making bins and signs available throughout our offices andfacilities.
■ 	
Encouraging the use of reusable materials such as glass and compostable or recyclable
plastics. This is done by providing reusable water bottles in our new hire kits as well as
reusable coffee mugs and drinking glasses in our offices and working facilities.

14

15

06 Social Topics
We’re investing in the long-term well-being and development of our employees as well as the communities wework with in order to increase economic growth and create opportunity for all. Beyond our internal initiatives,
we have also engaged with our various partners to conduct studies that have uncovered industry-wide benefits
ranging from increased safety, positive public health impacts, reductions in food waste and food insecurity andcontributions to addressing human rights issues such as human trafficking. We have published our research andfindings in a white paper titled “The Potential Environmental and Social Impacts of Autonomous Trucking.”

■
■
■
■
■
■
■
■
■
■
■
■

CultureDiversity and Inclusion
Gender Diversity
Pay Equity
Learning and Development
Recruitment
Health and Wellness
In Our Communities
Human Rights
Workforce Development
Product Safety
Our Partners

1606.01 Culture

Our people are the reason why we are able to push boundaries and break down barriers as a company. Creating aculture that encourages our employees to fulfill their long-term goals and to grow and develop is critical to win andretain talent.
The list below highlights some examples of initiatives we have implemented to create a strong culture:■ 	
Individual employee and team initiatives□ 	
Integration of core values into performance
reviews and monthly recognition of employees
demonstrating specific core values to highlightstrong performers and the integration of these
beliefs into our culture. Individuals who receive ourmonthly core value recognition awards are awarded
with an additional 8 hours of paid time off.
□ 	
Conducted employee engagement survey in 2021
to improve employee satisfaction and intend tocontinue doing so annually.
□ 	
Individualized plans for managers to identify pain
points and bottlenecks to improve day to day duties
at work for both managers and their teams.
□ 	Monthly team building budgets provided to
managers to spend on collaboration and teambuilding outside of normal working hours.

17
06.01 Culture (cont’d)■ 	Company-wide initiatives□ 	
Committees to ensure employees are being heard and create continuous employee experience
improvement (e.g., Recognition Committee, Communications Committee, Women’s Committee).
□ 	
Cultural events and celebrations focusing on education, diversity, and inclusion.
□ 	
Breakfast, lunch, and dinner provided for employees with a focus on healthy eating and inclusive
menu options (vegan, traditional ethnic cuisine, gluten-free, etc.).
□ 	Internal Slack channels for recognition and comradery, such as:■ 	#WellDoneTu
A collaborative channel used
to recognize and celebrate
employees for their hard work anddedication to TuSimple.
■ 	#DistanceTugether
A social channel for employees tocome together, build comraderyand collectively overcome
challenges caused and amplified
by the Covid-19 pandemic.

18

06.02 Diversity and Inclusion
A diverse range of backgrounds and perspectives makes us stronger and better able to strategically respondto changes in the industry. We continuously strive to build stronger relationships with our communities, be an
active member of stakeholder networks, and ensure all employees feel a strong sense of belonging.

U.S. Workforce Figures as of December 31, 2021

66% Ethnic Minority

23% Female

As of December 31, 2021, our U.S. workforce was 23% female and 66% ethnically diverse with individuals
from ethnic minorities. We are working towards increased representation year-over-year in most Equal
Employment Opportunity Commission (EEOC) classifications . Additionally, active outreach to veteran, women,
and minority groups is an integral part of our recruiting strategy for both full time and part time positions aswell as internships. Our internship program is aimed at fostering a diverse group of young minds who will go
on to be industry leaders and innovators.

06.02 Diversity and Inclusion (cont’d)
We celebrate the diversity of ethnicities, cultures, and religions represented among our employees byrecognizing major holidays such as Hispanic Heritage Month, Holi, Lunar New Year, etc.

Hispanic Heritage Month Celebration

Lunar New Year Celebration

Holi Celebration

19

20

06.03 Gender Diversity

We prioritize equal opportunities for women and support their advancement into organizational leadership positions. In 2020, welaunched the Women’s Committee to promote the leadership and inclusion of women at TuSimple. The committee continued to grow inboth membership and impact throughout 2021 by working to broaden the richness of opportunities for women, increasing leadership
positions, and driving recognition and support of female talent to create an inclusive culture of opportunity for all.
Some of the initiatives the Women’s Committee has launched include:■ 	
Her Journey: A quarterly speaker series that hosts fireside chats with powerfulfemale leaders across all industries. Recent speakers include:□ 	
Barbara Bry, Former San Diego City Council Member□ 	
Diane Hames, VP of Marketing at Navistar□ 	
Lilian Vanvieldt-Gray, Executive Vice President and Chief Diversity andInclusion Officer at Alliant Insurance Services□ 	
Gay Rochester, President/CEO of INA Towing□ 	
Grace Zuncic, Chief People and Culture Officer at Chobani□ 	
Shelley Simpson, Chief Commercial Officer and Executive VP of Peopleand HR at J.B. Hunt Transportation Services■ 	
Women at TuSimple: A blog series that features some of the accomplishedwomen of TuSimple across different roles and teams.
■ 	
Women’s History Month Celebrations□ 	
Awareness: Published a weekly spotlight feature of notable women in
the trucking and technology industries in our internal Slack channels.
□ 	
Diversity Discussion: Hosted a diversity discussion around the benefitsof diversity in the workplace.

™

We are also proud to share thatin 2021, the following TuSimple
women have been recognized as
Top Women to Watch by Womenin Trucking:Charlee Poineau
Program Manager
Joyce Tam
Director of Product Management21

06.04 Pay Equity
At TuSimple we are committed to fair pay for equal work regardless of sex, color, or sexual orientation.
Along with 60 other companies, we have taken the California Pay Equity Pledge and hope other Californiabased companies will join us in this movement.

06.05 Learning and Development
Creating a highly engaged culture requires investment in employee learning anddevelopment. TuSimple is committed to ensuring our team has what they need tosucceed in their current roles and be prepared for future ones. Currently, to ensure
opportunities for continued learning and development, we offer a $1,500 yearlystipend to all full-time employees for educational resources such as courses,
books, and seminars. Additionally, we provide an advanced practicum internshipexperience that goes beyond traditional internship programs and provides
intensive mentorship and experience on meaningful work.

06.06 Recruitment

22

Our employees are talented and highly skilled in areas that are increasingly in demand, including AI,
machine learning, and computer vision. We have developed diverse channels and strategies for recruiting,and our engineering teams are closely aligned with our business and HR teams to forecast hiring needs
as our technology grows and matures. We partner with top technical universities and PhD labs to develop
our candidate pipelines, encourage employee referrals through a referral incentive program, and recruit at
AI and computer vision conferences globally. Our summer internship program is a key contributor to ourtalent strategy, with 79 interns in the 2021 program.

06.07 Health and Wellness
TuSimple is committed to the health and safety of our employees and their families. Our objective is to ensure that
our team is able to be their best-self both in and out of the workplace. It is not only limited to occupational healthand safety risks. As such, we offer a 360 holistic approach to employee wellness.
Some of the health and wellness benefits we offer include:■ 	
Healthcare and Assistance□ 	
100% company-paid medical, vision and dental insurance plans□ 	Telehealth program via Teladoc, available 24/7□ 	Company-paid Employee Assistance Program (EAP) to help our employees
and their families deal with any of life’s challenges such as stress, anxiety, etc.
■ 	
Wellness□ 	
Daily breakfast, lunch, and dinner at our San Diego and Tucson offices□ 	
Fitness center access in our San Diego office□ 	Monthly reimbursement towards fitness activities to encourage employees
to achieve and maintain a healthy lifestyle06.08 In Our Communities
01 Sun Corridor, Inc
With our major operations center located in Tucson, TuSimple works withother industry and community leaders through Sun Corridor, Inc. to promoteeconomic growth in Southern Arizona, helping to bring additional jobs andinvestment to the community.
Sun Corridor, Inc. brings together key leaders from the private sector, governments, nonprofits, and academia
to market the region as a business center and influence economic and public policy. The organization’s primary
goal is to facilitate primary (non-retail) job and investment growth in the region, creating a competitiveenvironment that allows primary employers to flourish and succeed.
In May 2021, we announced plans to increase our Tucson footprint, with an expansion of roughly 35,000 square
feet of office, lab and warehouse space for continued technology development.

23

24

02 Solving the Challenges of Food Waste
Over the past several years, we have been collaborating withstakeholders and partners across the food industry. Most recently, we
worked with Giumarra (a produce marketing company supporting over
2,000 growers) and the Associated Wholesale Grocers (AWG) to validate the benefit of autonomy for middlemile applications by reducing the time for a middle mile load by 42%. This allowed AWG to more effectively
distribute fresh food to locally-owned grocery stores across the state. By potentially extending the shelf lifeof produce and reducing prices, we can provide greater access to healthier food in communities located in“food deserts” and improve the overall health of the community.

25
03 Food Bank Partnership
Metrics highlighting TuSimple’s partnership with the Community Food Bank of Southern Arizona:

3.5 million

2.7 million

90+

39,000pounds of food transported

meals delivered

truckloads of food hauled

miles traveled

TuSimple first started working with the Community Food Bank of Southern Arizona in 2018. Since then, we have continued to partnerwith them to provide both food donations and freight transportation during times of need, notably throughout the holidays andduring the height of the pandemic. During these periods, we delivered two to four shipments of food per week – from lettuce towatermelons – to both the Community Food Bank of Southern Arizona as well as other food banks. Recognized as the top food bankin the U.S., the Community Food Bank of Southern Arizona serves 180,000 people annually through programs that address bothfood insecurity and health. As new challenges due to the pandemic emerged throughout 2020 and 2021, our contribution helped theCommunity Food Bank of Southern Arizona face those challenges head on.
To date, we have successfully delivered more than 3.5 million pounds of food, or
2.7 million meals, to communities in need. This partnership represents some of thebenefits of autonomous trucks as they improve the quality of life in our communities,
especially for those underserved by the limitations of our supply chain.

26
04 Feeding San Diego Food Drive
During the 2021 winter holiday season, TuSimple participated in a local in-person food drive for Feeding San Diego sponsored by theowners of our San Diego building, The Irvine Company. Through this food drive, we collected a total of 150 lbs of food which was used tofeed local families across San Diego County.
In 2021, Feeding San Diego provided more than 40.3 million meals to people facing hunger, worked inpartnership with 292 local community organizations and facilitated 14,700+ volunteer hours. Feeding
San Diego rescues high-quality, nutritious, surplus food from all types of food donors, such as farms andgrocery stores. Then, they work with community partners who distribute the food to people in need.

05 Paying It Forward: Serving Communities In Need
Over the years, TuSimple employees have leveraged the power of crowd-sourcing
to give back to our communities. Since 2018, TuSimple has had the yearly holiday
tradition of collecting toys onsite in partnership with the US Marines and Toys forTots to donate to the local community. Additionally, in 2021, TuSimple employees
donated over $25,000 to Active Minds, a national organization that promotes mental
health for young adults.
February 2021 saw the costliest winter storm in history ravage across the country.

During this storm, Texas was especially hard-hit by power outages. Our team in Texas
partnered with Sparkletts and the Texas Division of Emergency Management todonate 10 water pallets to the Catholic Charities of Fort Worth and other non-profits.

27

06 Supporting Local Vendors
Food brings everyone together, and as we grow within our local communities, TuSimple has found that this is oneof the best ways to support small and local businesses in all of our locations. Being intentional about each local
partnership is key in supporting a sustainable future, growing roots and supporting the community that supports us.
At our locations, we strive to source meals from vendors in the surrounding communities, including minority-owned
restaurants or food trucks such as Sonoran Mexican Cuisine, Foxy Roxy’s, and Omar’s Hi-Way Chef Restaurant.

07 The Trevor Project
At TuSimple, we honor diversity and inclusion year round, and support for our LGTBQ+
community reaches far beyond the month of June. In 2021, we launched an initiative
to sell TuSimple Pride shirts in order to raise funds for donation to The Trevor Project,a national organization providing crisis and suicide prevention services for LGBTQ+
youth under 25.

28

06.09 Human Rights
Human trafficking is a global problem in which people are coerced into commercial sex acts or labor against
their will. It is estimated that there are 40 million victims of human trafficking globally, including thousands ofchildren and adults in the United States, in what is currently a $150bn industry.
During their time on the roads, truck drivers move in and out of rest stops,
restaurants, and hotels. This puts them in a unique position where they
are able to spot and report incidents of trafficking that take place at theselocations. Truckers Against Trafficking (TAT) reported that over the past
decade, truck drivers have made more than 2,000 calls to their hotline,
helping to raise awareness of more than 600 likely cases and identify morethan 1,000 potential victims.
While TuSimple is an autonomous trucking company, we will continue to have safety drivers and AV system
operators on the roads on a regular basis who may encounter human trafficking incidents that should bereported. In addition to our safety drivers and AV system operators, we believe that our employees who are notout on the roads should also be aware of suspicious activity in their everyday lives and know how to take action.

06.09 Human Rights (cont’d)
To proactively support this cause, a series of initiatives have been launched within TuSimple:■ 	
TuSimple is the first autonomous trucking company to sign on as a sponsor of Truckers Against Trafficking.
■ 	
We recently hosted Laura Cyrus, the Director of Corporate Engagement at Truckers against Trafficking ina fireside chat where she also trained our employees to spot signs of human trafficking and take action to
file reports.
■ 	
We recently expanded our required TAT training program to include our system operators, ensuring thatevery TuSimple employee driving in our trucks on public roads is trained on what red flags to look for as
indicators that human trafficking may be taking place. As of December 2021, we have trained and certified
over 60 safety drivers and AV system operators for TAT.
Beyond making affirmative commitments to combat human trafficking, we are looking into ways our trucks
can help to tangibly address trafficking activity while on the road. We see the potential that our technology has
in terms of increasing transparency and supporting law enforcement efforts to tackle this issue. By exploring
ways to combine our technology with internal initiatives that empower our people to play a part, as well as
partnerships with law enforcement and public service entities, we commit to using our technology as a force
for good.

29

30

06.10 Workplace Development
To help prepare today’s workforce for new jobs in the autonomous trucking industry, we
have partnered with colleges in the communities that we operate in. In 2020, we launched our ongoing partnershipwith Pima Community College to create the nation’s first accredited program for existing Commercial Driver’s
License (CDL) holders to learn how to become autonomous truck operators.
The Autonomous Vehicle Driver and Operations Specialist certificate
program teaches students how to interact with autonomous vehicles,
the basics of computer hardware components, electrical systems,
safety, health and environmental regulations, and domestic freighttransportation. We believe this is an important step in getting
America’s truck drivers equipped to work with tomorrow’s technology.

06.10 Workplace Development (cont’d)31

In continuation of these efforts, we announced a partnership with Louisiana’s
Community and Technical Colleges System (LCTCS) (LCTCS) to launch a training
course in artificial intelligence in June 2021. Students at LCTCS – who are pursuing
careers in IT, business, and commercial vehicle operations – will be able tospecialize in areas that complement the unique needs of the transportationindustry in Louisiana.
Autonomous trucks are expected to support American economic growth, enhance and transformfreight transportation, and create new opportunities not previously contemplated. As one of theleaders in the autonomous trucking space, we are working closely with communities to develop
the expertise needed for autonomous trucking operations.
To learn more about our workforce development initiatives, please see our blog.

Troy A. Carter, Sr.,
Congressman, Louisiana District 2
House Transportation and Infrastructure Committee““

I would like to thank TuSimple for partnering with LCTCS to bring thetraining necessary to repair autonomous vehicles to Louisiana. This
will ensure that our students are prepared when these cutting edge
job opportunities arise.

32
06.11 Product Safety
Safety is at the core of everything we do at TuSimple. In 2021, we
created and published our first Safety Report to provide an overview
of how we ensure that our testing and development of our trucks issafe. This report was also submitted to the National Highway Traffic
Safety Administration (NHTSA) as part of its Automated Driving
Systems Voluntary Safety Self-Assessment (VSSA).
In addition to publishing our Safety Report in 2021, we also
published a Safety Framework for The First Semi-Truck Driver Out
Program which speaks to our safety culture and governance, safety
processes and best practices, and our Safety Case Framework for
our Driver Out Program.
Our safety culture and governance, use of best practices such as
the V model and agile design model for product development,
and the safety case framework for the Driver Out Program, lay theframework for our safety philosophy and implementation. Unlike
the traditional automotive industry, which has long-establishedstandards to prove safety and roadworthiness of human-driven
vehicles, the autonomous vehicle (AV) industry is at its beginningstages of development. This gives us the opportunity to be an
integral and active part of creating wholly-sufficient standards. We
believe it is our responsibility to develop and employ standardsbased methodologies to guide AV-specific standardization and tocommunicate our overall safety solution.

06.11 Product Safety (cont’d)Given the above context and the unprecedented complexity of autonomous driving technology, we choose tobuild on the current automotive industry regulations for safety by incorporating multiple substantive safety
methodologies when designing our safety framework.
During the development period, our autonomous trucks are operated by a 2-person team consisting of a
trained safety driver and an AV system operator. Our safety drivers are all CDL Class A licensed drivers who
are responsible for maintaining control of the vehicle at all times, disengaging the autonomous system whennecessary, and manually operating the vehicle in the case of an autonomous system disengagement.
Improving safety is one of the most important potential benefits of autonomous technology. During Q3 2021,
we released the initial results of a safety-performance study by Geotab, a global leader in IoT and connectedtransportation. The telematics data measured industry standard critical driving events, such as harshacceleration, braking and cornering, which can be considered leading indicators for unsafe driving that canincrease the risk and frequency of accidents. The data was collected in a variety of conditions, including day,night, rain, and extreme heat as well as on highways and surface streets. The initial results of the study basedon 80,000 autonomous miles driven by our autonomous trucks indicate that the TuSimple autonomous
technology helps significantly reduce harsh driving events per 10,000 miles that lead to accidents. These
results, shown in Figure 2 below, uncovered substantial improvements in harsh braking, harsh acceleration, andharsh cornering by autonomous trucks, as compared to manually-driven trucks.

Figure 2: Comparison of how
TuSimple trucks perform on harsh
events against manually driven
trucks’ performance, Geotab and
TuSimple (2021)

33

06.11 Product Safety (cont’d)This study adds to our growing data set supporting the broad-based benefits of our L4 technology,
including fuel savings, and now, a third-party study indicating significant reductions in harsh cornering,braking, and acceleration events. The results support our strong belief that autonomous vehicles will
improve overall road safety and reduce the number of road accidents.
Currently, we are working together with Liberty Mutual, amultinational company offering insurance products and services, tostudy the comparative safety benefits of autonomous trucks alongwith the potential impact on commercial vehicle insurance.
In 2021, we became one of the first companies dedicated exclusively toautonomous trucks to join the Self-Driving Coalition which has recently
been renamed to the Autonomous Vehicle Industry Association (AVIA).
This coalition was created to advocate for the vast range of use cases ofautonomous vehicles and to educate lawmakers, regulators and the public
on their safety and social benefits.
We continue to bolster the AV industry’s efforts to bring this transformational technology to market safely
and reliably through collaborations with government officials and non-profit organizations.

34

35

06.12 Our Partners

Our memberships and partnerships are key to ensuring that we continue to build autonomous trucks that lift thecommunities that we operate in. Being intentional about each local partnership is key in supporting a sustainable
future as well as growing roots and supporting the community that supports us.
Active Minds

Sparkletts

Associated Wholesale
Grocers (AWG)Sun Corridor Inc

Autonomous Vehicle
Industry Association (AVIA)

Texas Division of Emergency
Management

Community Food Bank ofSouthern Arizona

Giumarra

Feeding San Diego

The Trevor Project

Liberty Mutual Insurance

Toys for Tots

Louisiana’s Community andTechnical Colleges System (LCTCS)

Truckers Against Trafficking(TAT)

Pima Community College
(PCC)

36

07 Governance
Running our organization in a way that meets and exceeds all regulatory requirements is extremely important to us.
It’s also important that we go beyond a “checklist” approach for compliance by fostering a culture of accountability,
security, and the utmost level of ethical behavior.

37

07.01 Board of Directors

At TuSimple, good governance is key to driving our success and building long-term sustainable value for our stakeholders. The Boardof Directors (the Board) is directly and regularly engaged with senior leadership. Additionally, our board members have experience as
top-level executives at public companies.

Board Committees■ 	
Audit Committee: Assists the Board with its oversight of
the following: the integrity of our financial statements;
our compliance with legal and regulatory requirements;
the qualifications, independence, and performance of
the independent registered public accounting firm; thedesign and implementation of our internal audit function
and risk assessment and risk management.
■ 	
Compensation Committee: Assists the Board indischarging certain of our responsibilities with respect
to compensating our executive officers, and theadministration and review of our incentive plans for
employees and other service providers, including ourequity incentive plans, and certain other matters related
to our compensation programs.

■ 	
Nominating and Governance Committee: Assists
the Board with its oversight of and identification ofindividuals qualified to become members of our board of
directors, consistent with criteria approved by our boardof directors, and selects, or recommends that our boardof directors selects director nominees, develops andrecommends to our board of directors a set of corporate
governance guidelines, and oversees the evaluation of
our board of directors.
■ 	
Government Security Committee: Assists the Board by
providing oversight of our implementation and adherence
to the terms of the National Security Agreement enteredinto with the U.S. government, including protection ofcertain of our intellectual property.

Board Diversity
Our Board is one of the company’s most important assets and we strive to create an inclusive and diverse environment.
Currently, our board is 40 % female and 20% ethnic minority*.

20%of board seats are held byunderrepresented minorities

40%of board seats are held by women*As of June 30, 2022.

07.02 Corporate Governance38

Our corporate governance approach includes:■ 	
Code of Conduct: Our Board and employees are required to abide by our Code of Conduct, which is guided
by our company mission and values. The conduct provides a framework for all of our employees to strive todo the right thing and act in a way that is consistent with our values. Additionally, most of our fleet-related
suppliers are also screened using a Supplier Selection Assessment Evaluation to ensure that they are incompliance with our Code of Conduct.
■ 	External Compliance and Audit Partnerships: Partnerships with key external experts in a wide range ofcompliance and audit areas such as the Automotive Information Sharing and Analyst Center, which aims toensure that companies are staying ahead in cybersecurity.
■ 	
Company Whistleblower and Safety Hotlines: Developed process for internal investigations and proceduresfor ethical complaints, ultimately rolling up to the Audit Committee. Complaints and grievances can besubmitted through multiple channels including human resources, legal staff, and our confidential ethics andsafety reporting hotlines. See our Code of Conduct for details.
■ 	
Employee Trainings: Recurring required training for key topics such as data security and anti-harassment.
Additionally, all employees are trained on our core values and ethical policies at orientation.

07.03 Safety Governance
Given the impact of governance on our safety outcomes, we have actively prioritized
optimization of our organizational structure, policies and product development processes inan effort to ensure success of our safety mission. Our safety governance approach includes:■ 	
Safety Policy Steering Committee: Our Safety Committee holds primary responsibility
for establishing, validating and confirming the Driver Out Safety Framework, managing
necessary adjustments and assuring adherence to the Safety Framework before
launching Driver Out missions on public roads. The Safety Committee is composed of across-functional group of our senior-most technology, legal and regulatory executives,
including our Co-Founder and Chief Executive Officer, Chief Administrative and Legal
Officer and Vice President of Systems and Safety Engineering.
■ 	
Culture of Safety: Since our inception, we have prioritized a culture of safety and haveinstituted a structured methodology behind our safety practices and procedures. The
goal of this cornerstone of our culture is to enable the entirety of our team at TuSimple
to always act with safety as a central guiding principle. Internally, our prioritization ofsafety is evident throughout our hiring, training and day-to-day employee experience.
Along with building the right teams, we equip and train our employees on industryleading safety methodologies, practices and procedures. Furthermore, we empower
employees to raise concerns and validate through leadership action that these concerns
are heard, taken seriously, and acted upon.
■ 	
Safety Hotline: We have worked to ensure that all employees feel empowered toparticipate in an open dialogue around our safety practices. Along with promoting aculture that challenges the status quo and prioritizes safety, we have instituted a safety
hotline where employees can report behaviors or decisions that they believe to beunsafe. This provides all employees across our organization the ability to confidentiallyand anonymously report any existing issues regarding safety matters and contributeto company-wide adherence to our safety policies and procedures. The safety hotline
serves as an essential component to our safety initiatives, ultimately allowing us to takeaction and ensure the highest levels of safety for our team and the motoring public.

39

08 UNSDG Mapping
UNSDG

40

TuSimple Initiatives
Zero
Hunger■ Collaboration with food-industry stakeholders and partners like Giumarra■ Food Bank Partnership with the Community Food Bank of Southern Arizona■ Feeding San Diego Food Drive

Good
Health andWell-Being

■
■
■
■
■

Quality
Education■■■■

Employee Learning and Development Opportunities
Toys for Tots Donations
Partnership and Accredited Program Created with Pima Community College
Partnership with Louisiana’s Community and Technical Colleges System

GenderEquality■■■■

Workforce Diversity and Inclusion: 66% Ethnic Minority & 23% Female
2020 Launch of TuSImple Women’s Committee
California Pay Equity Pledge Signator
Diversity and Inclusion: Board of Directors

Active Minds Donation
First Safety Report Published
Safety Framework for the First Semi-Truck Driver Out Program PublishedPartnership with Geotab for Safety-Performance Study
Partnership with Liberty Mutual to Assess Comparative Safety of Autonomous
Trucks■ TuSimple Joins the Self-Driving Coalition (AVIA)■ Safety Committee and Safety Governance08 UNSDG Mapping (con’t)
UNSDG

41

TuSimple Initiatives
DecentWork andEconomic
Growth■ Individual employee, team and company-wide initiatives implemented to createa strong culture and working environment■ California Pay Equity Pledge Signator■ Employee Learning and Development Opportunities■ TuSimple Health and Wellness Benefits■ Sun Corridor Inc. Partnership■ Initiative to Support Local Vendors■ Partnership and Accredited Program Created with Pima Community College■ Partnership with Louisiana’s Community and Technical Colleges System■ Partnership and Initiatives with Truckers Against Trafficking

Industry,
Innovation
and Infrastructure■ TuSimple at a Glance - Our Business■ Published White Paper: “The Potential Environmental and Social Impacts ofAutonomous Trucking”■ UCSD Fuel Efficiency Study (2019)■ 13% Fuel Savings with UPS North America Air Freight■ TuSimple Joins the Self-Driving Coalition (AVIA)

Sustainable cities andcommunities■ Published White Paper: “The Potential Environmental and Social Impacts ofAutonomous Trucking”■ UCSD Fuel Efficiency Study (2019)■ 13% Fuel Savings with UPS North America Air Freight■ Recognized as a 2021 SmartWay High Performer and SmartWay Certified Carrier■ Leadership in Energy and Environmental Design (LEED) Silver Certification by the
U.S. Green Building Council - San Diego Office■ Sustainable Design of Operations Center in Tucson■ US EPA ENERGY STAR Partner■ Enabling our Employees to Reduce their Carbon Footprint■ Partnership with Sparkletts and the Texas Division of Emergency Management

08 UNSDG Mapping (con’t)
UNSDG

42

TuSimple Initiatives■■■■

Responsible
Consumption and
Production

Peace, Justice andStrong Institutions

UCSD Fuel Efficiency Study (2019)13% Fuel Savings with UPS North America Air Freight
Recognized as a 2021 SmartWay High Performer and SmartWay Certified Carrier
Leadership in Energy and Environmental Design (LEED) Silver Certification by the
U.S. Green Building Council - San Diego Office■ Sustainable Design of Operations Center in Tucson■ US EPA ENERGY STAR Partner■ Enabling our Employees to Reduce their Carbon Footprint■ Diversity and Inclusion: 66% Ethnic Minority & 23% Female■ Employee Celebrations and Education on Diversity of Ethnicities, Cultures andReligions at TuSimple■ Initiatives to Support The Trevor Project■ Partnership and Initiatives with Truckers Against Trafficking■ TuSimple Governance Committee■ Partnership with the Automotive Information Sharing and Analysis Center■ TuSimple Board Of Directors■ TuSimple Code of Conduct■ Diversity and Inclusion: Board of Directors■ Safety Committee and Safety Governance43

09 Conclusion
We recognize and understand the impact that an autonomous trucking
company can and must make. We are working hard to make a positive
contribution to the communities around us by reducing the emissions
associated with our trucks, responsibly managing our operations andgiving back to the communities we operate in. As we work to bringtransformational change to the trucking industry, we will continue to makedecisions for the greater good and make impactful change where we can.
This report illustrates how we bring the TuSimple mission to life through our business; it covers ourenvironmental, social and governance (ESG) approach for the calendar year 2021, focusing on the issues
we have determined to be of greatest importance. All reporting is limited to information for the owned
and operated facilities of TuSimple Inc. unless stated otherwise. Additional information about TuSimple
can be found on our website, www.tusimple.com.

10 Disclaimer

44

This letter and any accompanying oral presentation contain forward-looking statements. All statements other than statements ofhistorical fact contained in this letter, including statements as to future results of operations and financial position, planned products
and services, business strategy and plans, launch dates of products or services, the trajectory of our Driver Out Pilot Program, our timeline
to commercialization, expected safety benefits of our autonomous semi-trucks, objectives of management for future operations of
TuSimple Holdings Inc. and its subsidiaries (the “Company”, “we”, “our” and “us”), market size and growth opportunities, competitive position
and technological and market trends, are forward-looking statements. Forward looking statements are inherently subject to risks anduncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terms suchas “will”, “expect,” “plan,” “anticipate,” “intend,” “target,” “project,” “predict,” “potential,” “explore” or “continue” or the negative of these terms orother similar words. The Company has based these forward-looking statements largely on its current expectations and assumptions and on
information available as of the date of this letter. The Company assumes no obligation to update any forward-looking statements after thedate of this letter, except as required by law. The forward-looking statements contained in this letter and the accompanying oral presentation
are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to bematerially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties,
assumptions and other factors include, but are not limited to, those related to autonomous driving being an emerging technology,
the development of our technology and products, the Company’s limited operating history in a new market, the regulations governing
autonomous vehicles, the Company’s dependence on its senior management team, reliance on third-party suppliers,
potential product liability or warranty claims and the protection of the Company’s intellectual property. Moreover, the Company operates in
a competitive and rapidly changing environment, and new risks may emerge from time to time. You should not put undue reliance on any
forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will notnecessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. It is not possible for theCompany to predict all risks, nor can the Company assess the impact of all factors on its business or the markets in which it operates or theextent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any
forward-looking statements the Company may make. You should carefully consider the foregoing factors and the other risks and uncertainties
described under the caption “Risk Factors” in our most recent quarterly report on Form 10-Q. These SEC filings identify and address otherimportant risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking
statements. This letter also contains estimates, forecasts and other statistical data relating to market size and growth and other industry data.
These data involve several assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company
has not independently verified the statistical and other industry data generated by independent parties and contained in this letter and,accordingly, it cannot guarantee their accuracy or completeness. In addition, assumptions and estimates of the Company’s future performanceand the future performance of the markets in which the Company competes are necessarily subject to a high degree of uncertainty and risk
due to a variety of factors. These and other factors could cause results or outcomes to differ materially from those expressed in the estimates.