How Tesla, Costco and Paramount are Shifting Supply Chains
The S&P 500, a major US stock market index, tracks the performance of the country’s leading companies.
According to Bloomberg Law, around 430 of these companies now have board-level oversight of sustainability or CSR, showing how climate governance is moving into the core of business strategy.
From car manufacturers to retailers and media firms, businesses are embedding emissions targets, resource efficiency and ESG metrics across their global operations.
Paramount’s operational shift
Paramount, a major entertainment company, is applying environmental assessments across its international production footprint, identifying locations exposed to water stress and wildfire.
Paramount reports that 14% of its electricity consumption comes from renewable sources, alongside a broader reduction in absolute energy use.
This sits within its “Peak Sustainability” programme, which targets a 46% reduction in Scope 1 and Scope 2 emissions by 2030, as well as 100% albert certification for TV/film productions..
Crystal Barnes, Executive Vice President, Social Impact and ESG, 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.”
Costco targets emissions
Costco operates over 890 warehouses globally, and its Climate Action Plan targets supply chain education, data verification and environmental innovation.
Through this, the company is reshaping not just its direct operations, but also influencing its logistics networks and supplier practices.
- Educating employees and supply chain partners about climate change
- Examining how the business measures and verifies climate data
- Trialling ideas and scaling those that prove viable
These measures are reflected in the STAR programme, short for Sustainability Tracking Assessment and Reporting, which monitors emissions, waste and water use at warehouse level.
In California, Costco has installed 13 CO₂-based refrigeration systems and replaced over seven million gallons of diesel fuel with renewable alternatives.
These changes reduce emissions and reflect a move to low-carbon logistics infrastructure.
Ron Vachris, CEO of Costco, states: “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 battery sourcing and recycling
Tesla says its goal is to accelerate the world’s transition to sustainable energy, placing climate metrics at the centre of supply chain decisions, from manufacturing to material recovery.
Its Gigafactory in Berlin is designed to use only 0.45 million cubic metres of water annually while producing vehicles.
In Shanghai, Tesla reports that 100% of waste is now diverted from disposal, a key element of its circularity model.
Batteries account for 28.9% of Tesla’s greenhouse gas emissions, which is directly influenced by raw material sourcing.
In 2024, the company increased its use of recycled battery materials by 136%, reinforcing its commitment to closed-loop systems.
Sam Harris, Global Sustainability and Impact Lead, outlines the impact of this approach: "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."
She explains some of the year's highlights, including:
- 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,” adds Sam.
