Company: COST
Filing Date: 2025-12-04
Form Type: DEF 14A
Source: 0000909832-25-000159
Chunk: 50

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-04
Form: DEF 14A
Chunk 50
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 already disclosed multiple factors that relate to the Company's Climate Action Plan. Therefore, the separate report sought by this proposal is unnecessary and not a productive use of resources.

Our Climate Action Plan is important for the Company and support for the Plan has been demonstrated through discussions with the Company's largest shareholders. In addition, our efforts are material to protecting the resiliency of many of our supply chains. We believe our climate Plan also enhances our brand and builds customer loyalty.

Being an exemplary citizen in the communities in which we operate is core to our values. Our principles dictate that for “Costco to thrive, the world needs to thrive. We are committed to doing our part to help.” While we are proud of the progress we have made on climate action, our Plan has not placed undue financial burdens on the Company. As we have publicly stated, in connection with the Plan, “[the Company's] incremental spending in this area has been immaterial to our financial results.” We have continued to experience strong growth in the Company's business and robust financial results while the Climate Action Plan is being implemented.

The proponent refers multiple times to “net zero emissions” and “net zero commitments” and other "net zero" elements to bolster its claim of "apocalyptic" consequences. The Plan, however, is not now and never has been a net zero commitment for all emissions. The Plan is deliberately more measured. The Company also makes clear in its risk assessment disclosure that the Company relies upon and partners with its suppliers to meet certain reduction targets around Scope 3 emissions. These costs are incurred by suppliers and are generally not investments required by the Company itself (as opposed to impacting the cost of goods). Scope 3 emissions, as the Company has noted, represent over 90% of its total emissions. Finally, in certain jurisdictions the Company has been required to invest substantial sums in on-site power generation because local power resources are insufficient. Similarly, increasingly government regulation is mandating or prohibiting certain conduct with the effect of reducing emissions. Combined, these and other developments mean that business and legal imperatives require us to have climate initiatives in a number of areas that are not voluntary.

Two years ago our shareholders overwhelmingly rejected what we believe is the essence of the current proposal from this same proponent. The prior proposal requested a Board report “evaluating the material factors” regarding the appropriateness of “2050 net-zero carbon goal, or other similar decarbonization

8 https://news.un.org/en/story/2023/03/1134942

9 https