Costco Wholesale is the world’s third-largest retailer, generating $254 billion in net sales in fiscal year 2025 across over 890 warehouse club locations in 14 countries, primarily selling its private label Kirkland Signature brand and third-party merchandise in bulk. The company’s most current sustainability disclosure is its 2024 Environmental Social Responsibility (ESR) Report, covering fiscal year 2023 (ending August 2023), supplemented by a 2024 Climate Action Plan progress update. Costco’s sustainability posture has historically been conservative in disclosure and ambition compared to peers like Walmart and Target, but shareholder activism in 2022 and 2025 has accelerated formal climate commitments and deforestation assessment processes.

The company’s defining sustainability tension is structural: Costco’s high-volume, low-margin warehouse business model generates exceptional GHG intensity efficiency relative to revenue (emitting approximately 50% fewer GHGs per unit of sales than Walmart), while its absolute Scope 3 footprint of approximately 180 million MTCO₂e makes it one of the largest indirect emitters in global retail. Deforestation governance, Scope 3 supply chain accountability, and renewable energy coverage remain the three most underdeveloped areas of its sustainability program relative to the urgency and scale of its market footprint.

Source

https://www.costco.com/sustainability-introduction.html
https://investor.costco.com/financials/annual-reports-and-proxy-statements/default.aspx

Sustainability Strategy and Goals

Costco’s sustainability strategy is organized around a Climate Action Plan (CAP) and an ESR framework covering five themes: climate, food sustainability, natural resources, people, and governance. The company committed to net-zero GHG emissions by 2050 and SBTi-approved near-term targets for Scope 1 and 2 (39% absolute reduction by 2030 from a 2020 baseline of approximately 2.6 million MTCO₂e) and Scope 3 (20% intensity reduction in selected categories by 2030 from a 2020 baseline). These commitments were formalized following a shareholder vote in January 2022 that passed with 70% support, directing Costco to adopt science-based full value chain targets.

The strategy does not yet hold SBTi-approved certification for Scope 3 targets, which are intensity-based and cover only selected Scope 3 categories rather than the full value chain. Governance of sustainability is led by the ESG Steering Committee, which reports through the Executive Vice President of Merchandising and is subject to board-level review via the Nominating and Governance Committee.​

Net Zero and Carbon Emissions

Costco’s total GHG footprint across Scope 1, 2, and 3 reached approximately 186 million MTCO₂e in FY2023, up 1% year over year on an absolute basis but down on an intensity basis across all three scopes. Scope 3 emissions alone reached 179.6 million MTCO₂e in the most recent disclosed year, dominated by purchased goods and services (47.4%) and use of sold products (46.4%). Scope 1 and 2 emissions combined represent less than 1.5% of the total footprint, at approximately 2.6 million MTCO₂e at the 2020 baseline.

• Total GHG (FY2023): approximately 186 million MTCO₂e across Scope 1, 2, and 3; up 1% from FY2022 on absolute basis​
• All three scopes declined on an intensity basis in FY2023 versus FY2022​
• Scope 1 and 2 baseline (2020): approximately 2.6 million MTCO₂e; 39% absolute reduction targeted by 2030​
• Scope 3 (FY2024): approximately 179.6 million MTCO₂e; up approximately 9% since 2020; increasing in line with business growth​
• Scope 3 disclosure coverage: 9 of 15 GHG Protocol categories, consistent since 2023​
• Scope 3 largest sources (FY2024): purchased goods and services at 85.2 million MTCO₂e (47.4%); use of sold products at 83.3 million MTCO₂e (46.4%); upstream transportation at 7.7 million MTCO₂e (4.3%)​
• Net-zero target: 2050​
• Renewable electricity as of end of calendar year 2023: 21% of global purchased electricity from clean sources, up from 4.74% in an earlier baseline period
• Annual Scope 1 and 2 emission reduction objective: 2% per year​
• GHG intensity vs. peers: Costco emits approximately 50% fewer GHGs per unit of sales compared to Walmart​

Water Stewardship

Costco’s water strategy focuses on operational water intensity reduction and supply chain monitoring. The company targets continuous improvement in global water use efficiency without a single published absolute water withdrawal reduction target. Water monitoring system coverage reached 81.4% of facilities (excluding Costco Logistics), with a global water intensity of approximately 17.81 thousand gallons per million dollars of sales in FY2024, down from 18.59 in the prior year.​

• Water monitoring system coverage (FY2024): 81.4% of facilities, excluding Costco Logistics​
• Global water intensity (FY2024): 17.81 thousand gallons per million dollars of sales, down from 18.59 in the prior year and 18.2 in the year before​
• Improvement trajectory: 4.2% water intensity improvement from prior year​
• No published absolute water withdrawal reduction target or water positive commitment as of the FY2024 ESR Report
• Water scarcity risk assessment: ongoing, focused on high-stress geographies within the operational footprint
• Costco is a member of the Alliance for Water Stewardship (AWS), which provides the framework for its supply chain water risk engagement​

Regenerative Agriculture

Costco does not operate a formal regenerative agriculture program but conducted two pilot programs in 2023 related to regenerative agriculture practices with produce suppliers. The company’s Kirkland Signature supply chain sources significant volumes of commodity crops including beef, soy, and palm oil, all of which carry deforestation and land conversion risk. As of March 2026, Costco has not adopted deforestation-free commitments for these commodities with published timelines, though a deforestation assessment and action plan is due by end of 2025, following Green Century shareholder resolution success in September 2025.

• Two regenerative agriculture pilot programs in 2023 with produce suppliers; no published outcomes or scale-up timeline​
• Beef, soy, palm oil, and wood products identified as highest-risk deforestation commodities in Costco’s Kirkland Signature supply chain​
• No published time-bound deforestation-free commitments for any of the four high-risk commodities as of March 2026​
• Deforestation assessment and action plan committed by end of 2025 under Green Century shareholder resolution outcome​
• Forest 500 rating: Costco ranked as a high-exposure powerbroker across palm oil, soy, beef, and paper packaging with insufficient commitments​

Deforestation and Biodiversity

Costco lags the deforestation commitments of all major retail peers including Walmart, Target, Amazon, Kroger, and Carrefour, none of which have equivalent missing commitments across all four of the primary deforestation-risk commodities. The company has not published its CDP Forests disclosure, has no published non-compliance protocols for suppliers violating environmental standards, and holds no supply chain traceability system verified against deforestation risk. The deforestation action plan committed by end of 2025 is the most critical pending sustainability governance deliverable in Costco’s entire ESG program.

• No published deforestation-free commitment for palm oil, beef, soy, or wood products as of March 2026​
• No CDP Forests disclosure: Costco does not report to CDP Forests, unlike all major retail peers​
• Peer gap: Walmart targets deforestation-free palm oil, beef, soy, and pulp and paper by 2025; Target committed to deforestation-free palm oil by 2025; Kroger targets deforestation-free soy and beef in own brands by 2030​
• Green Century shareholder resolution (September 2025): passed, directing Costco to publish a deforestation risk assessment for Kirkland Signature supply chains and an action plan by end of 2025​
• Forest 500 category score for commitments: low relative to sector peers​
• Costco sources beef from Brazil and Australia, two of the highest deforestation-risk sourcing geographies globally​

Packaging and Circular Economy

Costco’s Six Rights of Packaging Sustainability strategy governs its packaging commitments: reduction, recyclability, recycled content, responsibility, renewability, and recovery. The company reduced 23.5 million pounds of plastic packaging from Kirkland Signature and fresh produce lines in FY2024, up from 14.4 million pounds in the prior year and 6.4 million in the year before. In April 2025, Costco launched aluminum and carton refills for home care products with Clean Cult in over 300 stores, piloting a reusable packaging model.

• Kirkland Signature and fresh produce plastic packaging reduction (FY2024): 23.5 million pounds, up from 14.4 million pounds in FY2023 and 6.4 million pounds in FY2022
• All flexible packaging target: recyclable, compostable, or made from recycled materials by 2025​
• Packaging recyclability standard: APR Design Guidelines for Plastic Recyclability applied to all plastic packaging​
• Compostable packaging: certified compostable (not just “biodegradable”) required where recyclability is not feasible​
• Clean Cult refill pilot (April 2025): aluminum and carton refills deployed in 300+ US stores, displacing single-use plastic in home care category​
• Waste diversion rate (FY2024): 82.0%, up from 80.5% in FY2023 and 79.9% in FY2022​
• 100% recyclable private label packaging target: by 2025 (Costco Canada)​
• Sustainable packaging guidelines require biobased plastics to be sourced from sustainably certified feedstocks​

Human Rights and Responsible Sourcing

Costco’s supplier Code of Conduct governs labor rights, anti-discrimination, health and safety, child labor, and freedom of association across all direct suppliers. Seafood supply chain human rights is the most active area of stakeholder engagement: in June 2025, institutional investors led by Sarasin and Partners wrote a collective letter to Costco addressing supply chain human rights concerns, following forced labor exposés in the Indian, Chinese, and North Korean seafood industries. Costco responded by engaging with the Seafood Task Force and expanding supplier mapping for tuna and shrimp.

• Seafood Task Force membership: Costco participates in industry-wide supplier mapping for tuna and shrimp, following 2025 investor engagement​
• Supplier Code of Conduct covers labor rights, anti-discrimination, health and safety, child labor, freedom of association, and environmental standards across all direct suppliers​
• No published living wage commitment for Kirkland Signature or other supply chain workers (separate from Costco’s direct employees)​
• Investor letter (June 2025): collective engagement led by Sarasin and Partners addressed seafood supply chain human rights risks and forced labor exposure​
• CDP Forest disclosure: not submitted; gap identified by both shareholders and Forest 500​

Nutrition and Health

As a food retailer, Costco has a material role in public nutrition through its product mix. Kirkland Signature accounts for approximately 30% of net sales, covering food, beverage, and consumer goods. The company has no published added sugar reduction, sodium reduction, or front-of-pack nutrition labeling targets, distinguishing it from food manufacturer peers who face formal nutrition sustainability commitments under investor ESG frameworks.​

• No published nutrient reduction or healthier product portfolio shift targets for Kirkland Signature as of the FY2024 ESR Report​
• Organic food and beverage products stocked across Kirkland Signature range as a market-driven offering, not a formal sustainability commitment​
• Food waste reduction is embedded in waste strategy: Costco targets diversion of unsold food to food banks, animal feed, and biofuel, with 82.0% overall waste diversion in FY2024​
• Seafood sustainability policy covers nutrition-linked biodiversity risks through MSC certification and Fishery Improvement Projects​

Community and Social Impact

Costco’s most significant community sustainability contribution is its wage and benefits structure for direct employees, which sets a standard well above the US retail sector minimum. In March 2025, Costco’s minimum wage increased to $20 per hour, average wages reached more than $31 per hour, and a new three-year collective bargaining agreement covering 18,000 Teamsters workers was ratified after strike authorization. The company also delivered food donations to food banks globally and operated food waste diversion programs across its warehouse network.

• Minimum wage (effective March 2025): $20 per hour, with an average wage exceeding $31 per hour across hourly workers​
• Three-year Teamsters National Master Agreement ratified January 2025: $1 per hour increase at top of scale in 2025, followed by $1 increments in 2026 and 2027; 22% pension contribution increase​
• First-year employees now receive paid vacation, and 30-year employees receive six weeks of paid leave​
• Wages and benefits described by CFO as “far outpacing others in the retail industry”​
• Food waste diversion rate (FY2024): 82.0%; diversion channels include food banks, animal feed, biofuel, and composting​
• Warehouse solar installations ongoing, generating local community co-benefits through renewable energy grid contributions​

Governance and Transparency

Costco’s ESR Report is not independently verified by a third-party auditor and is not submitted to CDP in all relevant categories including CDP Forests. The company holds no SBTi-approved Scope 3 target certification. Governance of sustainability was strengthened following the 2022 shareholder climate resolution and the 2025 deforestation resolution, both of which passed against board recommendations, indicating that formal commitments have largely been driven by investor pressure rather than proactive board governance.

• ESR Report: not third-party verified; not submitted to CDP Forests​
• 2022 climate resolution: passed with 70% shareholder support against board recommendation; resulted in net-zero 2050 commitment and Scope 3 target adoption​
• 2025 deforestation resolution: passed against board recommendation; resulted in commitment to publish deforestation assessment and action plan by end of 2025​
• Nominating and Governance Committee of the board provides sustainability oversight​
• No SBTi-certification for any targets as of March 2026; Scope 3 target is intensity-based on selected categories only​
• Net-zero commitment listed on Net Zero Tracker (ZeroTracker) as of August 2025​

Technology and Innovation

Costco’s sustainability innovations are concentrated in energy efficiency, refrigeration system upgrading, food waste reduction technology, and emerging packaging circularity pilots. The company does not invest in proprietary sustainability technology development at the scale of Microsoft or Apple, but its STAR (Sustainability Technologies and Refrigeration) energy program governs efficiency improvements across warehouse lighting, HVAC, and refrigeration systems globally.​

• STAR program (Sustainability Technologies and Refrigeration): governs energy and refrigeration upgrades across global warehouse network; revised in 2024 with emphasis on improving both energy and refrigeration programs​
• LED lighting and efficient HVAC upgrades: deployed across warehouses as part of Scope 1 and 2 reduction strategy​
• HFC phasedown: ongoing upgrade of refrigeration systems to phase down hydrofluorocarbons (HFCs), a potent greenhouse gas​
• Solar installations at warehouses and depots: contributing to the 21% renewable electricity share as of end of 2023​
• Clean Cult aluminum and carton refill system in 300+ stores (April 2025): first circular refill model tested at Costco warehouse scale​
• Food waste diversion technology: biofuel conversion program for unsold food represents a technology-forward waste management approach​

Global Partnerships and Advocacy

Costco’s key sustainability partnerships span sustainable seafood (Seafood Task Force, MSC, WWF, Marine Stewardship Council), sustainable cotton (Better Cotton Initiative), responsible forest products, and investor engagement on climate and deforestation governance. The company’s most active external partnership in FY2024 and 2025 was the Seafood Task Force, triggered by the investor-led human rights engagement.

• Seafood Task Force: primary partnership for tuna and shrimp supply chain human rights and environmental mapping​
• MSC certification requirement: all Kirkland Signature wild seafood must be sourced from MSC-certified fisheries or fisheries participating in a Fishery Improvement Project (FIP)​
• WWF partnership: engaged for fishery improvement projects, particularly in seafood supply chains​
• Better Cotton Initiative (BCI): membership for sustainable cotton sourcing across apparel and textile categories​
• Green Century Capital Management: lead activist shareholder on both the 2022 climate and 2025 deforestation resolutions​
• Conservation Alliance for Seafood Solutions: Costco is among 20 of the top 25 US retailers engaged in the Alliance​

Source

https://investor.costco.com/financials/annual-reports-and-proxy-statements/default.aspx
https://www.esgtoday.com/costco-commits-to-set-full-value-chain-emissions-targets-following-activist-campaign/
https://www.greencentury.com/costco-moves-to-protect-forests-following-green-century-shareholder-proposal/

Progress vs. Target Tracker

Commitment	Target	Current Status	Assessment
Net-zero GHG emissions	By 2050	Committed; no interim milestone beyond 2030	On track (early stage)
Scope 1 and 2: 39% absolute reduction	By 2030 vs. 2020 baseline of ~2.6 million MTCO₂e	2% per-year reduction objective; renewable electricity at 21% of global purchased electricity by end 2023	Needs monitoring
100% renewable energy in operations	By 2035	21% of global purchased electricity from clean sources as of end 2023	At risk
Scope 3: 20% intensity reduction (selected categories)	By 2030 vs. 2020 baseline	Scope 3 absolute at ~179.6 million MTCO₂e in FY2024, up ~9% since 2020; intensity declining modestly	At risk
Continual improvement in waste diversion	Ongoing	82.0% waste diversion in FY2024, up from 79.9% in FY2022	On track
Kirkland Signature and fresh produce plastic packaging reduction	Ongoing, no fixed endpoint	23.5 million lbs reduced in FY2024, up 63% from 14.4 million lbs in FY2023	On track
100% flexible packaging recyclable, compostable, or recycled content	By 2025	In progress; no confirmed completion status in published 2024 ESR data	Needs monitoring
100% Kirkland Signature wild seafood from MSC or FIP	Ongoing	64.7% from MSC-certified fishery or FIP in FY2024, up from 63.5% in FY2022	On track (improving)
Deforestation assessment and action plan (beef, soy, palm oil, wood)	By end of 2025	Committed following September 2025 Green Century resolution; not yet published as of March 2026	At risk
DCF supply chain commitments for high-risk commodities	Not yet adopted	No time-bound DCF commitments for palm oil, beef, soy, or wood as of March 2026	At risk
SBTi-approved Scope 3 target	Target set but not yet SBTi-certified	Intensity-based, selected categories; not SBTi-certified	Needs monitoring
CDP Forests disclosure	Not yet committed	CDP Forests: not submitted; gap vs. all major retail peers	At risk
Water intensity improvement	Ongoing	Intensity at 17.81k gal per $MM sales in FY2024, down from 18.59 in prior year	On track
Minimum wage: $20 per hour	Effective March 2025	Achieved; average wage exceeds $31 per hour	On track
Teamsters collective bargaining agreement	Ratified January 2025	Three-year agreement ratified; 22% pension increase secured	On track

Source

https://www.scribd.com/document/822611868/COSTCO-ESR-REPORT
https://tracenable.com/company/costco-wholesale/ghg-emissions
https://carboncredits.com/costcos-cost-stock-86b-quarter-balancing-bulk-profits-with-bold-net-zero-goals/

Key Sustainability Innovations and Technologies

Costco’s sustainability innovations are concentrated in four areas: energy and refrigeration systems, plastic packaging reduction at scale, circular refill packaging pilots, and seafood traceability.

STAR Program: Energy and Refrigeration Upgrade Framework

The Sustainability Technologies and Refrigeration (STAR) program is Costco’s central mechanism for reducing Scope 1 and 2 emissions across its global warehouse network. Revised in 2024 with improved standards and metrics, STAR governs the deployment of LED lighting, high-efficiency HVAC systems, solar panel installation, and HFC refrigerant phasedown across over 890 warehouses and ancillary facilities. The HFC phasedown is particularly material: refrigerants used in commercial food retail are potent greenhouse gases with global warming potentials hundreds to thousands of times higher than CO₂, making refrigeration upgrades among the highest per-facility decarbonization levers available to Costco.

Plastic Packaging Reduction at Scale

Costco’s Six Rights of Packaging Sustainability framework has delivered three consecutive years of accelerating plastic packaging reduction across Kirkland Signature and fresh produce lines: 6.4 million pounds in FY2022, 14.4 million pounds in FY2023, and 23.5 million pounds in FY2024. This acceleration reflects the scaling of supplier-level packaging redesign commitments through Costco’s merchandising teams rather than a centralized technology investment. The trajectory represents a 267% increase in annual plastic reduction volume from FY2022 to FY2024 alone.

Clean Cult Refill Pilot

In April 2025, Costco launched aluminum bottles and carton refills for home care cleaning products from Clean Cult in over 300 US warehouse stores, introducing a commercial-scale circular packaging model to its warehouse format for the first time. The model displaces single-use plastic in the household cleaning category, where refill systems have historically failed to achieve retail penetration at warehouse scale due to logistical complexity. If Costco expands this pilot, its warehouse club format, which enables bulk purchasing of refill formats, could be structurally better suited to circular packaging adoption than conventional grocery retail.

Seafood Traceability and Supply Chain Mapping

Following 2025 investor engagement on seafood forced labor risk, Costco expanded its Seafood Task Force supplier mapping to cover tuna and shrimp, two of the highest-risk species for labor rights abuses in Asian processing supply chains. The traceability effort is building toward chain-of-custody visibility from harvest to warehouse, aligned with the MSC Chain of Custody standard. Costco sourced 64.7% of wild Kirkland Signature seafood from MSC-certified fisheries or FIPs in FY2024, up from 63.5% in FY2022.

Source

https://www.scribd.com/document/822611868/COSTCO-ESR-REPORT
https://packagingeurope.com/news/costco-sells-aluminium-bottles-and-carton-refills-of-homecare-products/12716.article
https://sarasinandpartners.com/think/stewardship-focus-raising-the-bar-on-human-and-labour-rights/

Measurable Impacts

Costco’s FY2024 ESR Report and Climate Action Plan update provide the following multi-year data.

• Total GHG emissions (FY2023): approximately 186 million MTCO₂e (Scope 1, 2, and 3); up 1% from FY2022; all scopes declining on intensity basis​
• Scope 3 emissions (FY2024): approximately 179.6 million MTCO₂e; up approximately 9% since 2020​
• Scope 3 largest sources: purchased goods and services at 85.2 million MTCO₂e; use of sold products at 83.3 million MTCO₂e​
• Renewable electricity (end of 2023): 21% of global purchased electricity from clean sources, up from 4.74% in an earlier period
• Water intensity (FY2024): 17.81 thousand gallons per $MM sales, down 4.2% from 18.59 in the prior year​
• Water monitoring coverage: 81.4% of facilities, excluding Costco Logistics​
• Waste diversion rate (FY2024): 82.0%, up from 80.5% (FY2023) and 79.9% (FY2022)​
• Plastic packaging reduced: 23.5 million lbs in FY2024, up from 14.4 million lbs in FY2023 and 6.4 million lbs in FY2022​
• Kirkland Signature wild seafood from MSC or FIP (FY2024): 64.7%, up from 63.5% in FY2022​
• Average hourly wage (FY2025): more than $31 per hour​
• Minimum hourly wage (effective March 2025): $20 per hour​
• GHG intensity vs. peers: approximately 50% fewer GHGs per unit of sales compared to Walmart​

Source

https://www.scribd.com/document/822611868/COSTCO-ESR-REPORT
https://tracenable.com/company/costco-wholesale/ghg-emissions
https://carboncredits.com/costcos-cost-stock-86b-quarter-balancing-bulk-profits-with-bold-net-zero-goals/

Challenges and Areas for Improvement

Costco faces four material sustainability challenges that carry regulatory, reputational, and investor risk.

Deforestation Governance Vacuum

Costco is the only major global retailer without published time-bound deforestation-free commitments for palm oil, beef, soy, or wood products as of March 2026, and the only major US retailer not reporting to CDP Forests. Shareholders passed a deforestation resolution against the board’s recommendation in September 2025, compelling a deforestation assessment and action plan by end of 2025. That plan has not been published as of March 2026, which means the deadline has passed without visible delivery. The EU Deforestation Regulation (EUDR), which took effect in December 2024, now requires deforestation due diligence documentation for beef, soy, palm oil, and wood products placed on the EU market, creating a direct regulatory compliance risk for Costco’s European operations.

Scope 3 Growth vs. Target Architecture

Costco’s Scope 3 emissions reached 179.6 million MTCO₂e in FY2024, up approximately 9% since 2020, directly counter to its stated 20% intensity reduction goal by 2030. The intensity target covers only selected Scope 3 categories and is not SBTi-certified, meaning it lacks independent validation and can be met even if absolute Scope 3 emissions continue to grow as long as revenue grows faster. For a retailer whose 97% of its carbon footprint lies in Scope 3, particularly in purchased goods and use of sold products, an intensity-only framework with limited category coverage is insufficient to demonstrate real climate alignment.

Renewable Energy Gap

Costco’s renewable electricity share stood at 21% of global purchased electricity at the end of calendar year 2023, against a target of 100% by 2035. With twelve years to close a 79 percentage point gap, the company needs to increase renewable electricity coverage by an average of approximately 6.6 percentage points per year. Current momentum, based on moving from approximately 4.74% to 21% over recent years, is positive but the scale of commitment required, particularly for international warehouses in countries with underdeveloped renewable procurement markets, significantly complicates the 2035 timeline.

Seafood Supply Chain Forced Labor Risk

The 2024 exposés of forced labor in Indian, Chinese, and North Korean seafood processing supply chains directly implicated species and sourcing geographies that overlap with Costco’s Kirkland Signature seafood range. While Costco responded to investor pressure in 2025 by expanding supplier mapping for tuna and shrimp via the Seafood Task Force, 35.3% of Kirkland Signature wild seafood remained outside MSC or FIP coverage as of FY2024. Supply chains in Myanmar, Thailand, Vietnam, and Indonesia, where Costco sources shrimp, salmon, and whitefish, carry documented risk of migrant labor exploitation, wage theft, and physical abuse.

Source

https://www.greencentury.com/costco-moves-to-protect-forests-following-green-century-shareholder-proposal/
https://tracenable.com/company/costco-wholesale/ghg-emissions
https://sarasinandpartners.com/think/stewardship-focus-raising-the-bar-on-human-and-labour-rights/

Future Plans and Long-Term Goals

Costco’s forward roadmap through 2030 and 2050 covers operational decarbonization, packaging circularity, seafood traceability, and the pending deforestation governance framework.

• Achieve 39% absolute reduction in Scope 1 and 2 emissions by 2030 (vs. 2020 baseline of ~2.6 million MTCO₂e)​
• Achieve 20% intensity reduction in selected Scope 3 categories by 2030 vs. 2020​
• 100% renewable energy in all operations by 2035​
• Achieve net-zero GHG emissions by 2050​
• Publish deforestation assessment and action plan for beef, soy, palm oil, and wood products (commitment due end of 2025; not yet published as of March 2026)​
• Consider adopting time-bound DCF commitments for beef, soy, palm oil, and wood products in the forthcoming action plan​
• Achieve 100% recyclable or compostable flexible packaging (target year: 2025); confirm completion in next ESR report​
• Continue scaling Kirkland Signature and fresh produce plastic reduction program beyond 23.5 million pounds​
• Expand Clean Cult refill pilot from 300 stores toward full warehouse club network as a circular packaging scale test​
• Continue seafood supply chain traceability improvements, targeting coverage for high-risk species sourced from highest-risk geographies​

Compared to Walmart, Costco lacks formal deforestation commitments, CDP Forests disclosure, and Project Gigaton-equivalent supplier engagement on Scope 3. Walmart’s more comprehensive ESG reporting and Project Gigaton, which has mobilized over 3,100 suppliers to avoid more than 1 billion tonnes of GHG emissions, contrasts directly with Costco’s absence of a structured supplier Scope 3 engagement program. Costco’s structural advantage, however, is its GHG intensity efficiency: approximately 50% fewer GHGs per unit of sales than Walmart, reflecting the inherent efficiency of its warehouse club model.

Source

https://carboncredits.com/costcos-cost-stock-86b-quarter-balancing-bulk-profits-with-bold-net-zero-goals/
https://www.greencentury.com/costco-moves-to-protect-forests-following-green-century-shareholder-proposal/

Comparisons to Industry Competitors

Costco is benchmarked here against Walmart (the world’s largest retailer) and Target (a comparable US general merchandise retailer with published ESG data).

Retail Sector Sustainability Metrics

Metric	Costco	Walmart	Target
Net-zero target	2050	2040 (zero emissions across global operations and supply chain); faster than Costco	2040 net zero for enterprise operations
Scope 1 and 2 target	39% absolute reduction by 2030 (vs. 2020)	50% absolute reduction by 2030 (vs. 2015); higher ambition	Science-based targets; 30% reduction by 2030 (vs. 2017)
Scope 3 target	20% intensity reduction (selected categories) by 2030; not SBTi-certified	Project Gigaton: mobilized 3,100+ suppliers to avoid 1 billion+ tonnes; SBTi-approved	30% reduction by 2030 across value chain (vs. 2017)
Renewable electricity	21% of global purchased electricity (end 2023); 100% target by 2035	100% of US operations on renewable electricity; global expansion ongoing	100% renewable electricity across owned operations by 2030
Deforestation commitments	No time-bound DCF commitments for any high-risk commodity; action plan overdue as of March 2026	Deforestation-free palm oil, beef, soy, and pulp and paper by 2025	Deforestation-free palm oil by 2025; forest-risk commodity commitments published
CDP Forests disclosure	Not submitted	Submitted annually	Submitted annually
Packaging	23.5 million lbs plastic reduced in FY2024; 100% flexible packaging recyclable by 2025 target	100% own-brand packaging recyclable, reusable, or industrially compostable by 2025; surpassed target	100% owned-brand packaging sustainable by 2025
Waste diversion	82.0% (FY2024); improving year over year	Zero waste to landfill at over 78% of global facilities as of FY2023	Over 70% waste diverted from landfill
GHG intensity vs. peer	50% fewer GHGs per unit of sales than Walmart	Higher GHG intensity per unit of sales than Costco	Mid-range; higher intensity than Costco per unit of sales
Employee minimum wage	$20 per hour (March 2025); average $31+ per hour	$15 per hour US minimum (2021); lower than Costco	$15 per hour minimum; lower than Costco

Walmart’s net-zero target is ten years ahead of Costco’s, its renewable energy coverage is substantially higher, and its supplier engagement program Project Gigaton operates at a scale that Costco has no equivalent to. Target’s CDP Forests reporting and deforestation-free palm oil commitment further illustrate the governance gap Costco must close. The one domain where Costco leads both peers is employee compensation: a $31+ average hourly wage and $20 minimum wage significantly exceed both Walmart and Target’s wage floors, representing a labor sustainability standard the company can legitimately claim as sector-leading.

Source

https://www.scribd.com/document/842739386/Final-Group-Presentation
https://www.forbes.com/sites/timabansal/2021/12/20/walmart-appears-to-be-greener-than-costco-but-is-it-really/
https://collaborate.unpri.org/group/30211/home

What to Watch: 12 to 18 Month Indicators

Three signals over the next 12 to 18 months will determine whether Costco closes its most critical sustainability governance gaps or remains a laggard on forest, Scope 3, and renewable energy commitments.

Deforestation Assessment and Action Plan Publication

Costco committed to publish a deforestation assessment and action plan for beef, soy, palm oil, and wood products by end of 2025, under the terms of the September 2025 Green Century shareholder resolution. As of March 2026, the plan has not been published. The next annual general meeting, typically held in January, will be the first accountability moment. If Costco publishes the plan before the January 2027 AGM with time-bound DCF commitments for at least two of the four high-risk commodities, it will close a gap of several years versus all major retail peers. Absence of publication by the 2027 AGM will trigger a probable new shareholder escalation and potential regulatory enforcement action under the EUDR for European operations.

Renewable Electricity Acceleration

Costco’s renewable electricity share was 21% at end of 2023, against a 100% target by 2035. A twelve-year journey requires sustained annual increases of approximately 6 to 7 percentage points. The company’s FY2025 ESR Report (expected mid-2025) will reveal whether the STAR program revisions implemented in 2024 are producing renewable energy procurement acceleration, specifically whether the 21% figure has advanced to a level consistent with the 2035 timeline. A figure below 28 to 30% in the FY2025 report would indicate the company is not on a trajectory to meet the 2035 renewable energy commitment without a step-change in procurement strategy, such as large-scale PPAs or on-site solar investment at a speed meaningfully above current pace.

Seafood Human Rights Remediation Outcomes

Following the June 2025 investor letter, Costco expanded supplier mapping for tuna and shrimp through the Seafood Task Force. The next 12 to 18 months will show whether this mapping produces published findings on supplier labor practices, a corrective action framework for non-compliant suppliers, and updated MSC and FIP coverage targets above the current 64.7%. Given that forced labor investigations in Indian and Chinese seafood processing continue to emerge in 2025 and 2026, Costco’s legal exposure under the US Uyghur Forced Labor Prevention Act, California Transparency in Supply Chains Act, and the EU Corporate Sustainability Due Diligence Directive is real. A proactive published remediation framework would significantly reduce that exposure.

Source

https://www.greencentury.com/costco-moves-to-protect-forests-following-green-century-shareholder-proposal/
https://tracenable.com/company/costco-wholesale/ghg-emissions
https://sarasinandpartners.com/think/stewardship-focus-raising-the-bar-on-human-and-labour-rights/

Costco’s sustainability record through FY2024 and into early 2026 presents a company whose structural environmental performance, approximately 50% better GHG intensity per unit of sales than Walmart, significantly outpaces its formal sustainability governance. Every major climate, deforestation, and renewable energy commitment Costco has adopted since 2020 was compelled by shareholder resolutions passed against board recommendations. The deforestation action plan committed by end of 2025 remains unpublished as of March 2026. The Scope 3 target is non-certified, intensity-based, and covers only 9 of 15 GHG Protocol categories. The renewable energy program is at 21%, against a 2035 target of 100%. These are not incremental gaps; they are structural governance failures in a company generating $254 billion in annual sales.

Three strategic takeaways for practitioners benchmarking or replicating this approach:

• Shareholder resolutions as a governance forcing mechanism: Costco’s trajectory illustrates how investor-led shareholder resolutions, when coordinated by organizations like Green Century and backed by institutional investors, can override board resistance and compel formal sustainability commitments at companies that would otherwise not adopt them proactively. Practitioners at companies facing similar governance inertia should monitor the use of UNPRI collaborative engagement, CDP disclosure requests, and AGM resolution filing as coordinated escalation tools. The Costco case shows that resolutions passing with 70% support against board recommendation carry sufficient reputational and fiduciary weight to compel CEO-level action.
• GHG intensity vs. absolute emissions: both metrics matter: Costco’s 50% better GHG intensity versus Walmart is a legitimate and materially important data point. Practitioners should understand that intensity metrics and absolute metrics tell different stories and both are necessary for full sustainability accountability. A company can improve its intensity performance every year while its absolute emissions grow, which is exactly what is happening to Costco’s Scope 3 footprint. Any ESG framework that reports only intensity without absolute figures is incomplete, and procurement officers, investors, and CSOs benchmarking against intensity-only disclosures should independently calculate absolute trends.
• Deforestation-free sourcing as regulatory compliance, not voluntary aspiration: The EU Deforestation Regulation, effective December 2024, requires due diligence documentation proving deforestation-free sourcing for beef, soy, palm oil, leather, wood, cocoa, and coffee placed on the EU market. Costco’s absence of a deforestation assessment, DCF commitments, and traceability systems for these commodities now creates a direct legal compliance gap for European operations. Practitioners sourcing any of the seven EUDR-covered commodities at commercial scale should treat deforestation-free documentation as a mandatory legal requirement as of December 2024, not a voluntary ESG upgrade, and should initiate full Tier 2 and Tier 3 supply chain mapping immediately if not already underway.

Source

https://www.greencentury.com/costco-moves-to-protect-forests-following-green-century-shareholder-proposal/
https://tracenable.com/company/costco-wholesale/ghg-emissions
https://sarasinandpartners.com/think/stewardship-focus-raising-the-bar-on-human-and-labour-rights/
https://carboncredits.com/costcos-cost-stock-86b-quarter-balancing-bulk-profits-with-bold-net-zero-goals/