Company: COST
Filing Date: 2025-12-04
Form Type: DEF 14A
Source: 0000909832-25-000159
Chunk: 48

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-04
Form: DEF 14A
Chunk 48
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 of the compensation of our Named Executive Officers as disclosed in the Compensation Discussion and Analysis, the accompanying compensation tables, and the related narrative disclosure.

<div align='center'>PROPOSAL 4: SHAREHOLDER PROPOSAL REGARDING GREENWASHING RISK AUDIT</div>

The following shareholder proposal has been submitted to the Company for action at the Annual Meeting by the National Center for Public Policy Research, 2005 Massachusetts Avenue NW, Washington DC 20036. We will provide information regarding share ownership by the proponent upon receipt of a request to the Corporate Secretary for such information. The proposal will be voted on at the Annual Meeting only if properly presented by or on behalf of the proponent.

PROPONENT’S STATEMENT IN SUPPORT OF SHAREHOLDER PROPOSAL

Resolved: Shareholders request that the Board of Directors of Costco conduct an evaluation and issue a report within the next year, at a reasonable cost and excluding confidential information, assessing financial risks and costs associated with the Company's climate commitments.

Supporting Statement: Costco has made material commitments to engage in reduction of its greenhouse gas emissions through its Climate Action Plan (CAP). 1 Targets include a 39% reduction in emissions by 2030, and 100% clean energy by 2035. 2 However, not enough has been done to assure investors that such a drastic realignment of Costco towards renewable energy sources is in the best financial interest of shareholders.

McKinsey Sustainability estimates that a global transition to net zero emissions (NZE) would require $9.2 trillion dollars annually in global spending until 2050. 3 This raises serious questions about the costs of achieving Costco's related goals, but Costco has apparently not disclosed how much money it is spending on its green transition, much less how its investments in NZE are providing a positive return on investment for shareholders. Instead, Costco apparently merely provides metrics on locations now running on renewables and estimated reductions in greenhouse gas emissions. 4 Even investors committed to "sustainable" investing likely need accurate related cost information for proper share price valuation.

Seeing as the CAP is apparently a material investment presented by Costco without soluble financial metrics to judge it by, the CAP program may be a compelling target for anti-greenwashing action by the SEC or another interested body. 5

The SEC has historically targeted companies engaging in forms of greenwashing with considerable financial penalties. For example, Goldman Sachs Asset Management was fined for $4 million for policy and procedure failures related to ESG investments, 6 and DWS Investment Management Americas Inc