Costco Wholesale Corporation

Overall approach

5/16
- Overarching commitment on deforestation
  
  4/6
  
  Deforestation commitment
  
  Zero-deforestation
  
  4/6
  
  "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to:avoiding deforestation and conversion of natural ecosystems"
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  0/1
  
  Signatory
  
  No
  
  0/1
  
  If Other Initiative, specify::
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Costco understands that it has a responsibility to source its products in a way that is respectful to the environment and to the people associated with that environment. Our goal is to help provide a net positive impact for communities in commodity-producing landscapes, by doing our part to help reduce the loss of natural forests and other natural ecosystems, which include native and/or intact grasslands, peatlands, savannahs, and wetlands. (collectively referred to as “natural ecosystems”)."
  
  Open source document
- Deforestation as a business risk
  
  0/1
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/3
- Reporting on emissions from land-use change
  
  0/3
- Disclosure of conservation activity
- Disclosure of reforestation activity
Commodity score

29/84
- Beef
  
  20/84
  - Commitment Strength
    
    6/28
    - Commitment to protect priority forests
      
      6/17
      - Commitment details
        Sustainability commitment
        
        2.7/10.7
        
        Commitment to protect priority forests
        
        Sustainability commitment
        
        2.7/10.7
        
        Which certification schemes are used?: Other certification
        
        If Other, specify here: U.S. and Canadian Roundtables for Sustainable Beef
        
        "Costco recognizes that beef production has an impact on the environment and depending upon the beef production practices employed, the impact may be negative, positive, or somewhere inbetween. As stated above, Costco encourages suppliers to support good land stewardship practices. There are concerns that beef production contributes to deforestation and we currently do not source any of our fresh beef from Brazil."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/3
        
        Only avoids beef from Brazil - "Costco recognizes that beef production has an impact on the environment and depending upon the beef production practices employed, the impact may be negative, positive, or somewhere inbetween. As stated above, Costco encourages suppliers to support good land stewardship practices. There are concerns that beef production contributes to deforestation and we currently do not source any of our fresh beef from Brazil."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "Costco recognizes that beef production has an impact on the environment and depending upon the beef production practices employed, the impact may be negative, positive, or somewhere inbetween. As stated above, Costco encourages suppliers to support good land stewardship practices. There are concerns that beef production contributes to deforestation and we currently do not source any of our fresh beef from Brazil."
        
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        What date is given for the interim milestone(s)?: Current
        
        Target date is current - see 3.2
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/11
      - Commitment details
        No traceability commitment
        
        0/5.3
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
      - Target date
        No target date
        
        0/2
      - Interim target date
        No
        
        0/1
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "Costco expects its Suppliers and Facilities to comply, at a minimum, with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the Merchandise is produced. In the absence of Applicable Laws and Regulations, Suppliers and Facilities are expected to meet the requirements set forth in this Supplier Code of Conduct" This includes - Discrimination, Forced Labour, Child Labour, Freedom of association
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      "Diversity in our supplier base is important to Costco. Minority-owned and women-owned businesses often help us explore new ideas and maintain a fresh approach to our business, while positively affecting the economic development of the communities where we do business."
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to: [...] ensuring free, prior and informed consent of indigenous people"
      
      Open source document
  - Reporting and Implementation
    
    6/38
    - Reporting against commitments
      
      0/6
      - Commitment to protect priority forests
        No
        
        0/3
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      0/4
      - Commitment to protect priority forests
        No
        
        0/2
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Supplier and Facility shall comply with all Applicable Laws and Regulations that address the environment. Where not covered by Applicable Laws and Regulations [...] Costco reserves the right to audit or authorize a third party to audit any Facility that participates in the production, processing or harvesting of Merchandise for Costco. Such audits may include any Subcontractor used by the Facility. The audit shall be unrestricted, and may occur with or without advance notice."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Ethics hotline - online form
      
      Details of the mechanism: Social
      
      "Costco Wholesale has established a confidential reporting procedure relating to concerns with or complaints about: Costco's accounting, auditing and internal controls; or anyone at Costco who has committed, is committing, or is about to engage in conduct that may be illegal." Includes a link to "File a Report online"
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Palm oil
  
  45/84
  - Commitment Strength
    
    16/28
    - Commitment to protect priority forests
      
      9/12
      - Commitment details
        Zero-gross deforestation
        
        6/8
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        6/8
        
        Which certification schemes are used?: RSPO
        
        "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        applies to own-brand products - "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Target date
        2021
        
        1.2/1.3
        
        Target date
        
        2021
        
        1.2/1.3
        
        "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Interim target date
        No
        
        0/0.7
    - Commitment to protect High Carbon Stock areas and/or peatlands
      
      7/8
      - Commitment details
        Yes
        
        4/4
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes
        
        4/4
        
        Type of commitment: HCS; Peat
        
        "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Target date
        2021
        
        1.2/1.3
        
        Target date
        
        2021
        
        1.2/1.3
        
        "Our goal is that allpalm oil used in Kirkland Signature products will be 100% RSPO certified(or equivalent) by 2021 or sooner. In addition, we support practices to help achieve zero net deforestation andsupport smallholders. Accordingly, our goal is for all Kirkland Signaturesuppliers to source palm oil based upon the following principles by 2021 orsooner:1. Compliance with RSPO Principles (or equivalent).2. Protection of High Conservation Value (HCV) and High CarbonStock (HCS) forests.3. No new development on peatlands and the use of Best ManagementPractices for existing plantations on peatlands."
        
        Open source document
      - Interim target date
        No
        
        0/0.7
    - Commitment to a traceable supply chain
      
      0/8
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
  - Social Considerations
    
    12/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "Costco expects its Suppliers and Facilities to comply, at a minimum, with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the Merchandise is produced. In the absence of Applicable Laws and Regulations, Suppliers and Facilities are expected to meet the requirements set forth in this Supplier Code of Conduct" This includes - Discrimination, Forced Labour, Child Labour, Freedom of association
      
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      4/4
      
      Inclusion of small-scale farmers
      
      Yes
      
      4/4
      
      What is the nature of that support?: Technical assistance/support; Education and training
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 0 not specified
      
      "we support practices to help achieve zero net deforestation and support smallholders. Accordingly, our goal is for all Kirkland Signature suppliers to source palm oil based upon the following principles by 2021 or sooner: [...] Support for the integration of smallholders into sustainable supply chains. [...] We will work with our suppliers to update our progress annually and will include such progress on our website."
      
      Open source document
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      "Diversity in our supplier base is important to Costco. Minority-owned and women-owned businesses often help us explore new ideas and maintain a fresh approach to our business, while positively affecting the economic development of the communities where we do business."
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to: [...] ensuring free, prior and informed consent of indigenous people"
      
      Open source document
  - Reporting and Implementation
    
    17/38
    - Reporting against commitments
      
      4/6
      - Commitment to protect priority forests
        Yes
        
        2/2
        
        Commitment to protect priority forests
        
        Yes
        
        2/2
        
        2018 ACOP reports that Costco used 27,985 tons of palm oil and palm oil products in 2018, of which 22,926 tons were RSPO certified. Reports on website that in 2019, 94% of their physical palm oil was RSPO certified, and 96% of their entire palm oil supply chain was RSPO certified (including through Book and Claim credits)
        
        Open source document
        Open source document
      - Commitment to protect High Carbon Stock areas and/or peatlands
        Yes
        
        2/2
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes
        
        2/2
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
        
        Reports that in 2019, 94% of their physical palm oil was RSPO certified, and 96% of their entire palm oil supply chain was RSPO certified (including through Book and Claim credits)
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Reporting is independently verified
      
      3/4
      - Commitment to protect priority forests
        Yes: third-party
        
        1.3/1.3
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        1.3/1.3
        
        2018 ACOP reports that Costco used 27,985 tons of palm oil and palm oil products in 2018, of which 22,926 tons were RSPO certified. Reports on website that in 2019, 94% of their physical palm oil was RSPO certified, and 96% of their entire palm oil supply chain was RSPO certified (including through Book and Claim credits)
        
        Open source document
        Open source document
      - Commitment to protect High Carbon Stock areas and/or peatlands
        Yes: third-party
        
        1.3/1.3
        
        Commitment to protect High Carbon Stock areas and/or peatlands
        
        Yes: third-party
        
        1.3/1.3
        
        Reports that in 2019, 94% of their physical palm oil was RSPO certified, and 96% of their entire palm oil supply chain was RSPO certified (including through Book and Claim credits)
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/1.3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
      
      Collaborative actions
      
      No
      
      0/2
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise
      
      What initiatives does the company participate in?: 14-month partnership project with IDH Sustainable Trade Initiative, Winrock International and Cargill to develop a draft Protocol for Oil Palm Independent Smallholders for Sustainable and Responsible Management of Peat Areas
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Supplier and Facility shall comply with all Applicable Laws and Regulations that address the environment. Where not covered by Applicable Laws and Regulations [...] Costco reserves the right to audit or authorize a third party to audit any Facility that participates in the production, processing or harvesting of Merchandise for Costco. Such audits may include any Subcontractor used by the Facility. The audit shall be unrestricted, and may occur with or without advance notice."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Ethics hotline - online form
      
      Details of the mechanism: Social
      
      "Costco Wholesale has established a confidential reporting procedure relating to concerns with or complaints about: Costco's accounting, auditing and internal controls; or anyone at Costco who has committed, is committing, or is about to engage in conduct that may be illegal." Includes a link to "File a Report online"
      
      Open source document
    - Report volumes of commodity
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Report volumes of commodity
      
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Which certification schemes are used?: RSPO
      
      What is the certified volume?: 22,926Tonnes
      
      What is the non-certified/non-compliant volume?: 5,059Tonnes
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 100%
      
      Reported volume comes from their 2018/19 ACOP report. It is made up from a mixture of Book and Claim, Mass Balance Segregated and Identity preserved palm oil
      
      Open source document
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Pulp & Paper
  
  35/84
  - Commitment Strength
    
    16/28
    - Commitment to protect priority forests
      
      8/12
      - Commitment details
        Zero-gross deforestation
        
        6/8
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        6/8
        
        Which certification schemes are used?: FSC; PEFC
        
        "Costco currently accepts forest management certifications from three leading organizations: Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC), with a preference for FSC. Our goal is to have our paper products certified from well-managed forests. Many have been certified for some time and others are converting."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Costco currently accepts forest management certifications from three leading organizations: Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC), with a preference for FSC. Our goal is to have our paper products certified from well-managed forests. Many have been certified for some time and others are converting."
        
        Open source document
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
    - Commitment to reduce use of virgin wood fibre
      
      8/8
      - Commitment details
        Yes
        
        4/4
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        4/4
        
        Type of commitment: Recycled content; Reduction of material inputs
        
        "PACKAGING GOALS - Reduce our operational packaging waste by improving our efficiencies, with the added benefit of reducing expenses, Reduce the amount of packaging overall, Increase the recycled content and certified fiber in all packaging" [...] "Fiber used for paper-based packaging should come from known sources, should be procured legally from well-managed forests and should not contribute to deforestation. In 2019, examples of reduction include:The paperboard core of the Kirkland Signature™ holiday wrap has been reduced by 10% - 20%.In Australia, fresh apple corrugated packaging has been reduced by over 30%."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "PACKAGING GOALS - Reduce our operational packaging waste by improving our efficiencies, with the added benefit of reducing expenses, Reduce the amount of packaging overall, Increase the recycled content and certified fiber in all packaging" [...] "Fiber used for paper-based packaging should come from known sources, should be procured legally from well-managed forests and should not contribute to deforestation. In 2019, examples of reduction include:The paperboard core of the Kirkland Signature™ holiday wrap has been reduced by 10% - 20%.In Australia, fresh apple corrugated packaging has been reduced by over 30%."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        "PACKAGING GOALS - Reduce our operational packaging waste by improving our efficiencies, with the added benefit of reducing expenses, Reduce the amount of packaging overall, Increase the recycled content and certified fiber in all packaging" [...] "Fiber used for paper-based packaging should come from known sources, should be procured legally from well-managed forests and should not contribute to deforestation. In 2019, examples of reduction include:The paperboard core of the Kirkland Signature™ holiday wrap has been reduced by 10% - 20%.In Australia, fresh apple corrugated packaging has been reduced by over 30%."
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        What date is given for the interim milestone(s)?: Current
        
        "PACKAGING GOALS - Reduce our operational packaging waste by improving our efficiencies, with the added benefit of reducing expenses, Reduce the amount of packaging overall, Increase the recycled content and certified fiber in all packaging" [...] "Fiber used for paper-based packaging should come from known sources, should be procured legally from well-managed forests and should not contribute to deforestation. In 2019, examples of reduction include:The paperboard core of the Kirkland Signature™ holiday wrap has been reduced by 10% - 20%.In Australia, fresh apple corrugated packaging has been reduced by over 30%."
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/8
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "Costco expects its Suppliers and Facilities to comply, at a minimum, with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the Merchandise is produced. In the absence of Applicable Laws and Regulations, Suppliers and Facilities are expected to meet the requirements set forth in this Supplier Code of Conduct" This includes - Discrimination, Forced Labour, Child Labour, Freedom of association
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      "Diversity in our supplier base is important to Costco. Minority-owned and women-owned businesses often help us explore new ideas and maintain a fresh approach to our business, while positively affecting the economic development of the communities where we do business."
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to: [...] ensuring free, prior and informed consent of indigenous people"
      
      Open source document
  - Reporting and Implementation
    
    11/38
    - Reporting against commitments
      
      4/6
      - Commitment to protect priority forests
        Yes
        
        2/2
        
        Commitment to protect priority forests
        
        Yes
        
        2/2
        
        "The Costco Connection magazine, which includes all of our global editions, and Multi Vendor Mailers are certified either FSC, PEFC or SFI.In 2019, we completed the conversion of Kirkland Signature™ Bath Tissue, Facial Tissue, Paper Towels and Napkins sold worldwide to certified programs of the Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC). More information can be found on the Kirkland Signature page.We are converting our receipt register tape to FSC and as of 2019, the receipt register tape used in some gas stations and sold by Business Delivery is certified.In addition, as of September 2019, all U.S. and Canadian locations have converted to BPA-/BPS-free register tape inside the buildings and are in the process of converting the register tape at the gas station pumps.We continue to offer more recycled content products, compostable content products, and recycled content packaging of paper goods at Costco Business Centers and online Business Delivery.100% of Kirkland Signature Parchment Paper sold worldwide is FSC certified.100% of Kirkland Signature Gift Wrapping Paper sold worldwide is FSC certified."
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        Yes
        
        2/2
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        2/2
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        "PACKAGING GOALS - Reduce our operational packaging waste by improving our efficiencies, with the added benefit of reducing expenses, Reduce the amount of packaging overall, Increase the recycled content and certified fiber in all packaging" [...] "Fiber used for paper-based packaging should come from known sources, should be procured legally from well-managed forests and should not contribute to deforestation. In 2019, examples of reduction include:The paperboard core of the Kirkland Signature™ holiday wrap has been reduced by 10% - 20%.In Australia, fresh apple corrugated packaging has been reduced by over 30%."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Reporting is independently verified
      
      1/4
      - Commitment to protect priority forests
        Yes: third-party
        
        1.3/1.3
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        1.3/1.3
        
        "The Costco Connection magazine, which includes all of our global editions, and Multi Vendor Mailers are certified either FSC, PEFC or SFI.In 2019, we completed the conversion of Kirkland Signature™ Bath Tissue, Facial Tissue, Paper Towels and Napkins sold worldwide to certified programs of the Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC). More information can be found on the Kirkland Signature page.We are converting our receipt register tape to FSC and as of 2019, the receipt register tape used in some gas stations and sold by Business Delivery is certified.In addition, as of September 2019, all U.S. and Canadian locations have converted to BPA-/BPS-free register tape inside the buildings and are in the process of converting the register tape at the gas station pumps.We continue to offer more recycled content products, compostable content products, and recycled content packaging of paper goods at Costco Business Centers and online Business Delivery.100% of Kirkland Signature Parchment Paper sold worldwide is FSC certified.100% of Kirkland Signature Gift Wrapping Paper sold worldwide is FSC certified."
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        No
        
        0/1.3
      - Commitment to a traceable supply chain
        No
        
        0/1.3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Supplier and Facility shall comply with all Applicable Laws and Regulations that address the environment. Where not covered by Applicable Laws and Regulations [...] Costco reserves the right to audit or authorize a third party to audit any Facility that participates in the production, processing or harvesting of Merchandise for Costco. Such audits may include any Subcontractor used by the Facility. The audit shall be unrestricted, and may occur with or without advance notice."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      Details of the mechanism: Social
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Ethics hotline - online form
      
      "Costco Wholesale has established a confidential reporting procedure relating to concerns with or complaints about: Costco's accounting, auditing and internal controls; or anyone at Costco who has committed, is committing, or is about to engage in conduct that may be illegal." Includes a link to "File a Report online"
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Soy
  
  14/84
  - Commitment Strength
    
    0/28
    - Commitment to protect priority forests
      
      0/17
      - Commitment details
        No commitment
        
        0/10.7
        
        Commitment to protect priority forests
        
        No commitment
        
        0/10.7
        
        (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: No
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
      - Target date
        No target date
        
        0/2
      - Interim target date
        No
        
        0/1
    - Commitment to a traceable supply chain
      
      0/11
      - Commitment details
        No traceability commitment
        
        0/5.3
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
      - Target date
        No target date
        
        0/2
      - Interim target date
        No
        
        0/1
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "Costco expects its Suppliers and Facilities to comply, at a minimum, with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the Merchandise is produced. In the absence of Applicable Laws and Regulations, Suppliers and Facilities are expected to meet the requirements set forth in this Supplier Code of Conduct" This includes - Discrimination, Forced Labour, Child Labour, Freedom of association
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      "Diversity in our supplier base is important to Costco. Minority-owned and women-owned businesses often help us explore new ideas and maintain a fresh approach to our business, while positively affecting the economic development of the communities where we do business."
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to: [...] ensuring free, prior and informed consent of indigenous people"
      
      Open source document
  - Reporting and Implementation
    
    6/38
    - Reporting against commitments
      
      0/6
      - Commitment to protect priority forests
        No
        
        0/3
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      0/4
      - Commitment to protect priority forests
        No
        
        0/2
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Supplier and Facility shall comply with all Applicable Laws and Regulations that address the environment. Where not covered by Applicable Laws and Regulations [...] Costco reserves the right to audit or authorize a third party to audit any Facility that participates in the production, processing or harvesting of Merchandise for Costco. Such audits may include any Subcontractor used by the Facility. The audit shall be unrestricted, and may occur with or without advance notice."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Details of the mechanism: Social
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Ethics hotline - online form
      
      "Costco Wholesale has established a confidential reporting procedure relating to concerns with or complaints about: Costco's accounting, auditing and internal controls; or anyone at Costco who has committed, is committing, or is about to engage in conduct that may be illegal." Includes a link to "File a Report online"
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Timber *
  
  30/84
  - Commitment Strength
    
    11/28
    - Commitment to protect priority forests
      
      11/17
      - Commitment details
        Zero-gross deforestation
        
        8/10.7
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        8/10.7
        
        Which certification schemes are used?: FSC
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/3
        
        What percentage of commodity production/sourcing is excluded?: 0 not specified
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/11
      - Commitment details
        No traceability commitment
        
        0/5.3
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/3
      - Target date
        No target date
        
        0/2
      - Interim target date
        No
        
        0/1
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      Yes
      
      4/4
      
      Labour rights in the supply chain
      
      Yes
      
      4/4
      
      Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
      
      "Costco expects its Suppliers and Facilities to comply, at a minimum, with all applicable labor, employment, health and safety, and environmental laws and regulations of the country where the Merchandise is produced. In the absence of Applicable Laws and Regulations, Suppliers and Facilities are expected to meet the requirements set forth in this Supplier Code of Conduct" This includes - Discrimination, Forced Labour, Child Labour, Freedom of association
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/4
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      "Diversity in our supplier base is important to Costco. Minority-owned and women-owned businesses often help us explore new ideas and maintain a fresh approach to our business, while positively affecting the economic development of the communities where we do business."
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      "We want to work with suppliers and others to support good land stewardship practices that also respect the autonomy and property rights of the landowner; are outcome-based rather than prescriptive; and respect the ability of rural people and their communities to thrive while serving as stewards of the land. Good land stewardship practices include, but are not limited to: [...] ensuring free, prior and informed consent of indigenous people"
      
      Open source document
  - Reporting and Implementation
    
    11/38
    - Reporting against commitments
      
      3/6
      - Commitment to protect priority forests
        Yes
        
        3/3
        
        Commitment to protect priority forests
        
        Yes
        
        3/3
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      2/4
      - Commitment to protect priority forests
        Yes: third-party
        
        2/2
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        2/2
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC Certification
        
        "After a 10-year moratorium on teak, in 2015 we began selling a limited amount of outdoor teak furniture that was 100% (FSC) certified. Today, all teak sold at Costco is 100% FSC-certified. Costco has expanded FSC certification to other species of solid wood products, including FSC-certified cedar wood playsets, gazebos, bee houses, outdoor furniture, and pavillions."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "Supplier and Facility shall comply with all Applicable Laws and Regulations that address the environment. Where not covered by Applicable Laws and Regulations [...] Costco reserves the right to audit or authorize a third party to audit any Facility that participates in the production, processing or harvesting of Merchandise for Costco. Such audits may include any Subcontractor used by the Facility. The audit shall be unrestricted, and may occur with or without advance notice."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Details of the mechanism: Social
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Ethics hotline - online form
      
      "Costco Wholesale has established a confidential reporting procedure relating to concerns with or complaints about: Costco's accounting, auditing and internal controls; or anyone at Costco who has committed, is committing, or is about to engage in conduct that may be illegal." Includes a link to "File a Report online"
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2

* commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

Commitment strength

10/28

Avg. score
Reporting and Implementation

10/38

Avg. score
Social considerations

9/18

Avg. score

Profile

Costco Wholesale Corporation as a global retailer and wholesaler. The company offers products such as groceries, apparel, furniture, houseware, office suppliers and health and beauty aids. Costco Wholesale Corporation is selected as a powerbroker for palm oil, soy, beef and paper packaging and is also assessed for its exposure to timber.

Sector

Industry sector

Food retail

Segments

Retailer

United States

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

Coscto, Kirkland Signature

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.