Why Paramount, Costco & Tesla Lead S&P 500's Energy Race

The S&P 500 is a US stock market index tracking the performance of leading listed companies.

Around 430 of these firms have a dedicated board committee overseeing sustainability and corporate social responsibility (CSR) activities according to Bloomberg Law.

The World Economic Forum states that sustainability is now essential for organisations aiming to stay relevant and competitive, calling for it to be fully embedded into corporate strategy.

The index includes some of the biggest brands worldwide such as McDonald’s, Johnson & Johnson, Starbucks and Apple.

Paramount’s operational energy focus

Paramount outlines its approach as fostering a better world for employees, audiences, partners and communities.

As part of its energy and climate strategy, the company runs climate risk assessments across global sites to identify high-risk locations for water stress and wildfires.

Globally, 14% of Paramount’s electricity comes from renewable sources, with the company also achieving an overall reduction in absolute energy use.

In its “Peak Sustainability” initiative, Paramount targets a 46% cut in Scope 1 and Scope 2 emissions by 2030.

These scopes refer to direct emissions from owned operations (Scope 1) and indirect emissions from purchased energy (Scope 2).

The company also aims for 100% of its TV and film productions to gain albert certification, an environmental standard for media production.

Costco’s emissions and efficiency strategy

Global retailer Costco operates more than 890 warehouses and sets out its energy and emissions approach in its Climate Action Plan.

This focuses on three main actions: educating employees and the supply chain on climate change, improving measurement and reporting of climate-related data and testing and scaling proven solutions.

The retailer has expanded its Workforce Dashboard beyond the US to guide investment in its workforce, donated $84m to local charities and provided 177 million meals.

Its STAR programme seeks to reduce water, waste, energy and emissions in warehouses while meeting environmental compliance requirements.

In California, Costco has concentrated on refrigeration and transport energy use, installing 13 additional CO₂-based refrigeration systems and replacing seven million gallons of diesel with renewable fuel.

“We continue to make strides towards our sustainability goals and to collaborate across multiple business units to make progress," says Ron Vachris, CEO of Costco.

“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 renewable and circular energy approach

Tesla positions its mission as accelerating the global transition to sustainable energy. In 2024, it says its customers avoided nearly 32 million metric tonnes of CO₂ emissions.

At its Gigafactory in Berlin, the company minimises water use to 0.45 million cubic metres annually while producing vehicles.

Tesla also operates recycling schemes across its factories, including full waste diversion from disposal at its Shanghai facility.

Batteries represent 28.9% of Tesla’s GHG emissions, influenced by material sourcing. In 2024, recycled battery materials increased by 136%.

“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," says Sam Harris, Global Sustainability and Impact Lead at Tesla.