Costco Steps up With Commitment to Set New Climate Emissions Reduction Targets

Costco, one of the largest retailers in the world, has committed to setting climate emissions reduction targets for its full value chain -- cumulatively called "Scope 3" emissions -- in 2023. The commitment comes after nearly 70% of its voting shareholders supported a January 2022 proposal calling on Costco to include the emissions from its producers, shippers and other partners when setting targets to reach net zero emissions by 2050.

Historically, Costco has significantly trailed many of its competitors on taking action to reduce climate emissions, standing out as one of only three of the 50 largest S&P 500 companies without a major climate commitment as of December 2021. At Costco's January 2022 annual meeting, shareholders called on the company to set science-based emissions reduction targets for its Scope 1, 2, and 3 emissions that would lead to achieving net zero emissions by 2050 or sooner. Scope 1 and 2 emissions are those from a company's operations and purchased energy, while the emissions from its supply chains and the use of its products are known as Scope 3.

In response, Matt Casale, PIRG Environment Campaigns director, issued the following statement:

"Everyone knows that oil and gas companies contribute to global warming, but it's important to remember that most companies play a role with their facilities and their sourcing, producing and transporting of goods. We're grateful to Costco for committing to reduce its contribution to climate change. Moving forward, we are excited to see the company's new Climate Action Plan and hope that Costco's commitment spurs other lagging companies to take action."

Mackenzie Brown, Environment America Global Warming associate, said:

"A greener, healthier world requires us to eliminate planet-heating pollution from all sectors of our society and our economy. It's encouraging to see Costco joining the ranks of the leading companies already committed to cutting their Scope 3 emissions. We urge Costco to take it a step further and align the company's climate targets with the Science Based Targets initiative, the global body enabling businesses to set emissions reduction targets in line with science."