Costco

Costco logo

Costco is a membership warehouse club dedicated to offering quality brand-name merchandise at lower prices. It operates globally with a wide selection of products and services.

Positive signals

Costco aims to achieve zero waste in all of its North American and European operations by 2030, focusing on waste diversion and circular economy initiatives.

Costco has set a goal to achieve a 25% reduction in overall greenhouse gas (GHG) emissions by 2030, demonstrating a clear long-term decarbonization commitment.

Costco achieved an ESG score of 41 out of 100 in 2025, reflecting a moderate commitment to environmental, social, and governance factors, with notable progress in reducing Scope 1 and 2 emissions compared to industry peers.

Costco's ESG risk rating from Sustainalytics reflects ongoing management of material ESG issues, with the company demonstrating effective risk mitigation in areas such as labor practices and supply chain management.

Costco has committed to ensuring 100% of its private-label product packaging is recyclable or compostable by 2025, supporting sustainable packaging initiatives.

Concerns

Costco faces ongoing challenges with Scope 3 emissions and sourcing transparency, which remain significant hurdles in its broader sustainability strategy.

Costco's highest controversy level in the past three years, as reported by Sustainalytics, indicates that the company has faced at least one significant ESG-related controversy impacting its risk rating.

Costco's environmental impact score is negative, with a net environment score of -4.05 and a GHG emissions score of -1.86, indicating that the company still has substantial room for improvement in its environmental performance relative to peers.