Is Costco Doing Enough on Sustainability?

People plan entire weekends around Costco runs, evangelize their favorite bulk finds, and proudly celebrate their membership as one of the smartest decisions they make each year. From viral haul videos to passionate discussions about the food court menu, Costco inspires a level of devotion few retailers can match.

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That loyalty is well-earned. Costco has built a stellar reputation for low prices, generous portions, and treating its employees better than most of the retail industry. It pays higher wages and offers better benefits to its direct employees than many large retailers. It has also made public DEI commitments.

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But does this brand reputation translate into strong sustainability metrics?

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Is Costco Sustainable?

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At Commons, we analyzed and rated the retailer across three major sustainability aspects: materials, slow consumption, and accountability, and here's what we found:

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Costco shares some sustainability information, but its commitments lack the depth and ambition expected from a company of its scale. The retailer has no environmentally mindful sourcing commitments and does not promote collections to help consumers make conscious purchasing decisions.

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Packaging is a mixed picture. Costco provides full details on its own-brand packaging and uses some recyclable materials. The company is working to reduce petro-based plastics and uses partially recycled plastic, and participates in partnerships like The Recycling Partnership and Sustainable Packaging Coalition. However, its initiatives to reduce packaging volume are vague or limited, and it has set no targets for improving its packaging materials.

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Energy and emissions reporting exist, but fall short. Costco uses some renewable energy in its supply chain, offices, and stores — though less than 50% in each. Its targets for increasing renewable energy are nonspecific and not on track. The company reports its emissions with a breakdown in CO2e, but its reduction targets are not science-aligned, and progress is lagging. Emissions are significantly elevated due to gas station operations.

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Also read: Trader Joe's Has a Cult Following, But Is It Sustainable?

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On waste, Costco performs better. The company has thorough food waste reduction initiatives and reporting, offers multiple models to promote consumer reuse and recycling, and provides detailed corporate waste reporting. It encourages customers to reuse shipping boxes instead of offering in-store bags.

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One thing customers like about Costco is that it often features hyper local products which is a great way to support local economies. But when it comes to sustainability, transit distance is not a large factor in many products’ overall emissions. Even if a product is manufactured locally, i’s often made with ingredients or parts produced elsewhere, so locality isn’t a reliable metric that we can factor into a retailer’s overall sustainability.

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Transparency is present but uneven. Costco publishes a voluntary sustainability report (last issued in 2024) and maintains a sustainability page in its website footer. However, it does not publish supplier information for owned production and its supplier code of conduct, while comprehensive in labor protections, does not sufficiently ensure a living wage or include environmental clauses.

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Costco has built a foundation for sustainable practices, but the execution is incomplete. When a brand commands this much loyalty and market power, we expect more than incremental efforts. We hope Costco will use its influence to lead the industry forward and not just do the bare minimum.