Costco

The company conducted a TCFD-aligned climate risk assessment in 2022, examining transition and physical risks under a less than 2°C, 2-3°C, and greater than 3°C scenarios. The company does not disclose whether animal agricultural supply chains or protein diversification were included in this analysis. The company plans to disclose updated scenario analyses in its FY2025 TCFD report.

The company has not yet reported a full breakdown of its Scope 3 emissions derived from animal agriculture, nor a breakdown by protein type. However, the company has reported a breakdown of its total Scope 3 emissions by category for FY2023, from which it is calculated that over 98% of its total emissions are Scope 3.

The company has not yet set a 1.5°C aligned SBTi-approved Scope 3 emissions reduction target that includes FLAG emissions. However, the company has set a target to reduce its Scope 3 emissions intensity by 20% by 2030 from a FY2020 baseline. The target considers the company's highest emitting product categories, including agricultural commodities such as beef. While science-based evidence guided this target, the company reports that it does not adhere to the requirements determined by the Science-Based Targets Initiative (SBTi) because it does not see a feasible path to meet a net-zero 2050 target while providing for all its stakeholders.

The company acknowledges its awareness of the need for protein diversification as an additional way to address deforestation and climate change alongside implementing regenerative agricultural practices and sustainable livestock management, however, the company has not yet quantified the emissions mitigation potential and/or financial opportunity of protein diversification.

The company has not yet set a public protein diversification target that is integrated into its climate transition plan. Although the company acknowledges its awareness of the need for protein diversification as an additional way to address deforestation and climate change, there is no evidence of a protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

The company has not yet set a public protein diversification target.

Costco has linked its executive bonus plan against ESG factors, including emission reductions, however, it is unclear which emission Scopes the company is compensating its board for. In FY2023, 17% of potential bonus was attributable to sustainability-related targets and/or impacts.

One company board member has expertise in sustainability, having previously served as the interim Chief Executive Officer of the global environmental non-profit organisation, The Nature Conservancy, which they remain a global board member and treasurer to.

The company has several board members with previous experience in senior leadership positions at pharmaceutical and healthcare companies. However, there is no evidence that any board members have relevant experience in healthy diets or nutrition.

The company does not disclose a full list of its direct lobbying activities, nor a dedicated list of its positions on policy topics as related to its food business. Costco states that the company does not take stances on social issues, remains uninvolved in partisan politics, and does not make financial contributions to political candidates or causes. In certain areas of its website, the company lists its positions on topics including, modern slavery, forced labour, animal welfare, protecting pollinator health, nature and biodiversity, chemical management, and reducing emissions.

The company does not disclose a full list of its direct lobbying activities, nor a complete list of its positions on policy topics as related to its food business. Therefore, it is unclear to what extent the company's direct lobbying actions are aligned with positive climate and nutrition outcomes.

The company does not disclose a full list of its indirect lobbying activities, but has mentioned in different areas of its disclosure membership to coalitions, such as the U.S. Roundtable for Sustainable Beef, the Sustainable Packaging Coalition (SPC), the Recycling Partnership, the Association of Plastic Recyclers, the Biodegradable Products Institute and the Packaging Association of Canada, the Equitable Food Initiative (EFI).

Costco has not disclosed a full list of its indirect lobbying activities or an assessment of alignment with positive climate and nutrition outcomes. The company reports that it does not plan to make a public commitment or position statement to conduct engagement activities in line with global environmental treaties or policy goals in the next 2 years.

The company provides a high-level statement supporting the need to consider its decarbonisation objectives within the context of a just transition for its members, employees, suppliers and the communities it serves. However, the company has not made a specific commitment to Just Transition principles covering its animal agricultural supply chains.

The company has not yet made a public commitment to retain, reskill, redeploy and/or compensate workers affected by its decarbonisation efforts.

Costco is supporting its fisheries and aquaculture suppliers' transition to more sustainable practices by supporting "Fishery Improvement Projects (FIP)" and "Aquaculture Improvement Projects". Costco provides financial support to FIP through its Fishery Improvement Fund, which supports suppliers in Chile's Central-Southern Region. However, the scale of these projects and the amount of funding is unclear. Costco has not provided details of its support to Aquaculture Improvement projects. While Costco also encourages its beef suppliers to support responsible cattle grazing, which helps maintain the health of grasslands, improves soil quality with manure, and preserves open space and wildlife habitat, the extent to which the company is supporting these suppliers beyond encouraging adoption of these practices is unclear.

The company has not yet disclosed a public just transition strategy.

It is unclear how Costco is engaging with social actors affected by its emission reduction efforts.

The company has not yet disclosed a public just transition strategy and therefore has no associated KPIs.

The company has not yet disclosed a public just transition strategy and therefore has no associated KPIs.

Costco launched both own and external brand plant-based products in its largest US and Australian markets in the past year. These include external vegan chicken brand "Shicken" in the US and vegan ice cream brand ''Melona'' in Australia, and an own Kirkland Signature brand tofu product globally.

There is no evidence that Costco has allocated resource to improve the performance of alternative protein products in the past year.

Costco does not have a minimum health and nutrition requirement for its alternative protein source portfolio aligned with a government-endorsed nutrient profiling system.

There is no evidence that Costco is reformulating alternative protein products to improve nutrition attributes.

There is no evidence that Costco is reformulating alternative protein products to improve sustainability attributes. Although, the company recognises soy as a driver of deforestation and states it offers consumers alternative plant-based products made from oats, almonds and coconuts.

There is no evidence that Costco has committed to marketing and merchandising strategies related to alternative proteins in its largest markets.

Costco is marketing alternative protein products in its largest US market by promoting plant-based recipes, which incorporate the external brand Orgain vegan protein powder product for example, on its YouTube channel and the 'Quick & Easy Videos' section of its website.

There is no evidence that Costco is working to ensure its alternative protein source products are accessible and affordable in its largest markets in the past year. Although, previously in 2023, the company launched an exclusive 10-pack of Beyond Meat plant-based burger patties for customers to conveniently purchase in bulk.

There is no evidence that Costco has conducted consumer research investigating trends within the alternative protein sources sector.

There is no evidence that Costco has used consumer research relating to healthy diets to inform its marketing and merchandising strategy for alternative protein sources.