Costco
COST:US US22160K1051
Key Information
HQ:
United States
Market Cap:
$373.57bn
Primary Markets:
North America, Europe & Russia
Protein Diversification Engagement
Analysis Overview
Climate Strategy - Integration of Protein Diversification Climate Strategy - Governance and Influence Climate Strategy - Adoption of Just Transition Product Portfolio - Resource Allocation Consumer Education - Consistancy of Marketing Strategies
Analysis Breakdown
Climate Strategy - Integration of Protein Diversification
DNF
Quantify Potential/Opportunity
DNF
TCFD-aligned scenario analysis
The company has completed a TCFD-aligned climate risk scenario analysis in 2022, to assess its transition and physical risks and opportunities. However, whether it covers animal agricultural supply chains and protein diversification is unclear.
No Evidence
Reporting of Scope 3 emissions from animal agriculture
The company discloses a breakdown of its total scope 3 emissions. However, it does not disclose emissions from animal agriculture.
No Evidence
1.5C aligned SBTi Scope 3 FLAG target
The company discloses its target to achieve a 20% reduction in Scope 3 emissions intensity by 2030 from the FY20 baseline. However, this target is not 1.5C SBTi aligned, and the company states that it does not believe a 1.5C pathway would be achievable.
No Evidence
Quantifying the opportunity of protein diversification
In Costco's 2023 Climate Action Plan the company states it is working to implement regenerative practices and transition to sustainable livestock production. However, the company does not recognise protein diversification as part of its climate strategy.
No Evidence
Protein Diversification Strategy
DNF
Integrating protein diversification into climate transition plans
There is no evidence that Costco has integrated protein diversification as part of its climate strategy.
No Evidence
Protein diversification target is timebound
There is no evidence for this KPI.
No Evidence
Business coverage of protein diversification target
There is no evidence for this KPI.
No Evidence
Alignment of target with climate and health guidelines
There is no evidence for this KPI.
No Evidence
Measuring Progress
DNF
Disclosing progress against protein diversification target
There is no evidence for this KPI.
No Evidence
Annual reporting of progress of protein diversification target
There is no evidence for this KPI.
No Evidence
Climate Strategy - Governance and Influence
DNF
Board Oversight
DNF
Board support for protein diversification
The company's climate action plan is overseen by the Senior VP of Global Sustainability and Compliance, reporting to the CEO and engaging with the Board, Nominating & Governance, and Compensation Committees. However, it has not mentioned a protein diversification target and it is unclear if the company's board has regular oversight of progress towards a protein diversification target.
No Evidence
Climate expertise of board
None of the company's board members have clear expertise in climate risk/sustainability.
No Evidence
Nutrition/health expertise of board
The company has board members with experience in senior leadership positions at healthcare-related companies. However, it is unclear from the disclosure whether they developed technical expertise in these roles.
No Evidence
Advocacy
DNF
Disclosing a list of direct lobbying actions
Costco states that it does not take positions on social issues, is not involved in partisan politics and does not contribute money to political candidate or issues.
No Evidence
Direct lobbying in line with climate and nutrition
Costco has not disclosed its positions on any climate change policies in its corporate reporting and CDP submissions. InfluenceMap has not found evidence of engagement with climate-related regulation by Costco.
No Evidence
Disclosing a list of indirect lobbying actions
There is no evidence for this KPI.
No Evidence
Indirect lobbying in line with climate and nutrition
There is no evidence for this KPI.
No Evidence
Climate Strategy - Adoption of Just Transition
Low
Just Transition Commitments
Low
Public commitment to Just Transition principles
Costco has a high-level statement about the importance of considering its decarbonisation objectives within the context of a just transition, however no further detail is provided and no reference is made to the animal agriculture sector.
Limited
Commitment to support workers
The company has not made a commitment to retain, reskill, redeploy and/or compensate workers affected by its decarbonisation efforts.
No Evidence
Commitment to support stakeholders
Costco acknowledges the role regenerative agriculture could play in improving the sustainability of its agricultural practices. The company includes reference to two pilot programs with Cargill and ADM related to regenerative agriculture, however it does not provide further detail on these initiatives. Costco also states that it is focusing on collaborating with suppliers, scientist, civil society and animal welfare experts to produce more sustainable livestock, however, it does not provide any evidence of financial support.
Limited
Just Transition Strategy
DNF
Public Just Transition strategy
The company does not currently has a Just transition strategy.
No Evidence
Consulting social actors in Just Transition strategy development
There is no evidence for this KPI.
No Evidence
Just Transition KPI
DNF
Disclosing Just Transition KPIs
There is no evidence for this KPI.
No Evidence
Reporting against Just Transition KPIs annually
There is no evidence for this KPI.
No Evidence
Product Portfolio - Resource Allocation
DNF
Portfolio Diversification
Low
Dedicating resources to expanding alternative protein offering
Costco is selling some external plant-based brands like Beyond Meat and Impossible Burgers.
Limited
Annual evidence of resource allocation
There is no evidence for this KPI.
No Evidence
Improving Nutrition and Sustainability Attributes
DNF
Dedicating resources to improve the nutrition and sustainability of products
Costco does not provide evidence of resource allocation to improve nutrition and sustainability attributes.
No Evidence
Reformulating products to improve nutrition
There is no evidence for this KPI.
No Evidence
Reformulating products to improve sustainability
Costco does not provide evidence of (re)formulation of products with improved sustainability attributes.
No Evidence
Consumer Education - Consistancy of Marketing Strategies
DNF
Commitment Across Geographies/Brands
DNF
Commitment to marketing alternative protein sources
FAIRR found no evidence that Costco has a commitment to marketing alternative protein sources.
No Evidence
Business coverage of marketing commitment
There is no evidence for this KPI.
No Evidence
Nutrition and Sustainabilty
DNF
Promoting the nutritional attributes of alternative protein sources
Costco does not actively promote the nutritional attributes of alternative protein sources through marketing campaigns or labelling.
No Evidence
Promoting the sustainability attributes of alternative protein sources
Costco does not actively promote the sustainability attributes of alternative protein sources through marketing campaigns or labelling.
No Evidence
Consumer Research
DNF
Conducting consumer research on alternative protein sources
FAIRR did not find any evidence that Costco is informing its marketing strategy for alternative proteins using consumer research and data.
No Evidence
Conducting consumer research on healthy diets
There is no evidence for this KPI.
No Evidence
Workstream Information
Business Type:
Retailer
Company Feedback Given:
No
Last Updated:
8 July 2024
2024 Resources
Protein Diversification Phase 1 Progress Report Protein Diversification Engagement