BOSTON, October 16, 2024 – In response to a shareholder proposal from Green Century, Costco Wholesale Corporation committed to publishing a comprehensive deforestation assessment and action plan for its Kirkland Signature brand. In exchange, Green Century and co-filer Boston Common Asset Management agreed to withdraw the proposal.
“Nature-related risks have emerged as a high priority issue for investors in the last year and we applaud Costco for strengthening its efforts to protect vital habitats around the world, said Leslie Samuelrich, President of Green Century. “Millions of Costco members will be gratified to know that their favorite Kirkland Signature items may be moving towards protecting rather than harming tropical forests, home to species from jaguars to giant otters.”
Costco says it plans to release its deforestation assessment and action plan by the end of 2025. The disclosure will lay out Costco’s roadmap to protect forests and other natural landscapes from deforestation when sourcing its beef, palm oil, soy and wood products. Those industries combined drive nearly three-quarters of tropical deforestation.
Costco to consider first-ever ‘no-deforestation’ targets
Today, nearly one-third of U.S. consumers shop at Costco, making it the third-largest retailer in the world behind Amazon and Walmart. Kirkland-brand items generated $56 billion in revenue for Costco last fiscal year – more than Nike, Coca-Cola, and United Airlines. The brand’s massive footprint means any incremental commitment to protect the planet has an outsized effect.
Many countries implemented new policies last year to preserve forests, promote biodiversity and help the climate. While Costco did not commit to fully eliminating deforestation from its Kirkland Signature brand supply chains, the wholesaler stated that it will consider adopting time-bound deforestation- and conversion-free (DCF) commitments for beef, soy, palm oil and/or wood products in its forthcoming deforestation action plan.
“Costco knows it shouldn’t destroy tropical forests to stock its shelves,” said Annie Sanders, Director of Shareholder Advocacy at Green Century. “We appreciate this step and encourage the company to further protect global forests by setting time-bound no-deforestation targets across its supply chain.”
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