INSIDE COSTCO
FUTURE FOCUSED
How Costco’ s culture of sustainability is helping to create a healthier and happier world.
BY SIMON JONES
Costco operates more than 800 warehouses around the world, so you can imagine how important it is to make sure each is operating as efficiently and ethically as possible. That’ s why the business has established a slew of broad-ranging and longstanding social and environmental initiatives that are underlined by a Sustainability Commitment. The Connection spoke to Stanley Tang, Regional Administration Director at Costco Wholesale, about what the Commitment means and how Costco is supercharging its approach to sustainability.
On target
While targets are universal across the world, Costco Australia takes strides to deliver a positive impact across five key areas.
1. Employees: From improved compensation and benefits in the wake of COVID-19 disruption, to upskilling opportunities, to a philosophy of creating an inclusive and respectful workplace.
2. Communities: In the 2021 – 22 financial year, Costco contributed more than $ 58 million to disaster relief and hundreds of charitable organisations around the world.“ This is only a small part,” Stanley explains.
“ We also make positive contributions to the wellbeing of the communities where we do business, and where our employees, members and suppliers live.”
3. Operations:“ Managing our operations in an energy-efficient and environmentally responsible manner requires us to improve everything from construction to energy and refrigeration, transportation and logistics, waste and water minimisation, and ongoing environmental compliance,” Stanley says.
4. Merchandising:“ Numerous parts along the supply chain fall under merchandising, but our sustainability mission goes well beyond a product’ s lifecycle – human rights, animal welfare and sustainable fisheries, to name a few,” Stanley says.“ We also regularly conduct social audits of our partner suppliers to protect the people who produce the products we sell. This ensures all workers are paid a living wage, while also prohibiting restrictive labour conditions, such as slavery, child labour and human trafficking.”
5. Climate Action Plan: A dedicated Climate Action Plan looks to make real changes for the improved health of our global community.“ We continually update this plan and develop our culture of continuous improvement for a sustainable future,” Stanley adds.
Prioritising sustainable development
Another critical part of Costco’ s Sustainability Commitment includes incorporating the United Nations’ Sustainable Development Goals. These goals have been considered in accordance with Costco Australia’ s Climate Action Plan, and several have also been prioritised globally.
“ After the UN decided there were 17 globally accepted goals that must be achieved by 2030, we as a company recognised that we have a very clear responsibility,” Stanley explains.“ We closely assessed the goals and looked at what we could do within our control to make an impact.”
Stanley says there are seven specific sustainable development goals for which Costco has defined targets, including clean water and sanitation, decent work and economic growth, reduced inequalities, responsible consumption and production, climate action, life below water, and life on land.
16 | JAN / FEB 2023 COSTCO CONNECTION