INSIDE COSTCO
A GREENER future
Here’ s how Costco is working towards sustainability, both in and out of the warehouse.
BY TANIA GOMEZ
W
hile the state of the planet can make us feel disheartened, Costco believes in the everyday power of taking positive steps towards sustainability.“ Costco is cognisant of the environmental impact it has as part of its operations,” says Sagar Dhungel, Environmental and Sustainability Compliance Manager at Costco. With this knowledge, Sagar explains, the company is working to reduce its impact.“ We are looking to do the right thing for our community and world – to make a difference,” he says. Through innovative solutions and thoughtful processes, Costco is making changes to become more sustainable in 2026 and beyond.
Water strategies
Costco is focused on reducing water wastage through leakage, and being efficient in water consumption. According to Sagar, the company uses technology that enables it to keep track of water use and identify any issues early.“ If there are any leakages in [ one of our ] buildings, we can address that,” he says.“ We also monitor our water consumption in real time.” In fact, each warehouse conducts weekly monitoring of its water usage and data is then studied to look for patterns to see where conservation can be improved.
Waste not
As a business, Costco’ s goal is to redirect at least 80 per cent of the waste it generates in everyday operations away from landfill. To aid these goals, the company has introduced recycling programs for e-waste, scrap metal, timber, cardboard, soft plastic( shrink wrap), organic waste and batteries.
In Australia, it’ s estimated 75.6 million tonnes of waste is generated every year, with organic material being the second largest category. Costco recognises the impact food waste has on climate change and has adopted a hierarchical system to help manage food waste in its day-to-day operations. The first step is to donate excess food for human consumption, and locations in Australia and New Zealand work with various charities, church groups and schools to facilitate food donations. The second step is to divert other food waste to farms and animal sanctuaries. Finally, any remaining organic waste is composted to help create nutrient-rich soil.
18 | JAN / FEB 2026 COSTCO CONNECTION