Tesla, Costco, Paramount: How S&P 500 Prioritises Climate

The S&P 500 is a stock market index that tracks the stock performance of the leading companies listed in the stock exchange in the US.

Around 430 companies from the S&P 500 have a board committee responsible for overseeing sustainability of CSR activities, according to research from Bloomberg Law.

The World Economic Forum says that sustainability has become increasingly critical for organisations to remain relevant and competitive, and it should be an integral part of a developing corporate strategy.

Some of the biggest names globally are part of the S&P 500 including Mcdonalds, Johnson and Johnson, Starbucks and Apple.

The majority of the companies involved have a solid sustainability strategy to guide the companies to net zero goals.

What is Paramount doing to be sustainable?

Paramount says that it is working to foster a better world for its employees, audiences, partners and communities.

Paramount conducts climate risk assessments across its global sites to identify water stress and wildfire key risk areas.

The company uses 14% of electricity derived from renewable sources globally, with a reduction in absolute energy overall.

It launched “Peak Sustainability” which targets a 46% reduction in Scope 1 and 2 emissions by 2030 and 100% albert certification for TV/film productions. 

Crystal Barnes, Executive Vice President, Social Impact and ESG, Paramount says: “In our own operations, we continued to expand the use of green production practices, quadrupling in one year the number of productions that we engaged with on sustainability. 

“As Paramount’s future continues to evolve, we remain focused on managing our most significant impacts and reporting on our progress with transparency and accountability. 

“More than just the right things to do, these are the commitments propelling us into the future.

Inside Costco's sustainability strategy

Leading grocer Costco operates more than 890 warehouses globally.

Costco’s Climate Action Plan it focuses on three main objectives: 

• Educating its employees and supply chain on climate change 
• Improving the way that it measures, reports and verify of climate related information
• Testing new ideas and scaling those that have proven viable and effective

The company expanded its Workforce Dashboard beyond the US to help operators better understand and invest in the workforce, donated US$84m to local charities and providing 177 million meals.

Costco's STAR programme aims to minimise water, waste, energy and emissions in the warehouse whilst also meeting environmental compliance obligations.

Costco has heavily focused on California, installing 13 more CO₂ based refrigerator systems and replacing seven million gallons of diesel with renewable fuel.

Ron Vachris, CEO, Costco said in a report: “We continue to make strides towards our sustainability goals and to collaborate across multiple business units to make progress. 

“We are committed to continuous improvement as we pursue this journey to help our world thrive. 

“We appreciate the support of our employees, suppliers, members and the communities and welcome their feedback as we evolve.”

Tesla’s sustainability aims

Tesla says its mission is to accelerate the world’s transition to sustainable energy, and in 2024 its customers avoided nearly 32 million metric tons of CO₂ emissions.

The company has created a Gigafactory in Berlin which is designed to consume as little water as possible, producing 0.45 million cubic metres of water a year whilst manufacturing the cars.

As part of its commitment to circularity in the value chain, Tesla initiates recycling programmes across its factories, with one factory in Shanghai having 100% of waste diverted from disposal.

Batteries contribute to 28.9% of Tesla’s GHG emissions, which is significantly impacted by where it sources the materials from - in 2024 the company increased its recycled battery materials by 136%.

Sam Harris, Global Sustainability and Impact Lead, Tesla says “I'm super proud of the sustainability work that Tesla does and mostly the innovative, tireless, impact led, and gritty work that my team does, no matter what.

“Some of this year's highlights: 

• "Customers avoided 32 million mt CO₂e this year - up 60% from last year.
• "Our carbon footprinting of our products expanded to more of our products both in vehicles and energy storage.
• "Our Supercharger network was 100% renewable again, for now four years in a row.
• "We recycled the equivalent of 21,000 Model Y batteries, also up from last year further expanding our circularity programme.

“I can't wait to share the next report in 2026, with even more cool stuff that the Tesla team and our sustainability team is working on.”