Costco 2008 Annual Report Download - page 14

that do not adhere to suggested retail prices or that otherwise sell at discounted prices. To date, we
believe that we have not been materially affected by our inability to purchase directly from such
manufacturers. Both federal and state legislation is proposed from time to time which, if enacted, would
restrict our ability to purchase goods or extend the application of laws enabling the establishment of
minimum prices. We cannot predict the effect on our business of the enactment of such legislation.
Certain states, counties and municipalities have enacted or proposed laws and regulations that would
prevent or restrict the operations or expansion plans of certain large retailers and warehouse clubs,
including us, within their jurisdictions. We believe that, if enacted, such laws and regulations could
have a material adverse affect on our operations.
ENERGY MANAGEMENT, CONSERVATION AND THE “GREENING” OF COSTCO
Corporate Sustainability and Energy Group Since the beginning of our Company, we have been
mindful of our responsibilities as an environmental steward in managing our new construction and the
many aspects of our ongoing operations in an energy-efficient and environmentally friendly manner. In
2007, we created the Corporate Sustainability and Energy Group (CSEG) to assess, develop,
implement and report on our environmental management efforts. The mission of CSEG is to help
ensure that Costco’s business operations are conducted in an environmentally and socially responsible
and sustainable manner; to reduce Costco’s use of resources and generation of waste; to comply with
the multitude of environmental laws and regulations; and to lead by example. The group has been
developing company-wide solutions to manage the various aspects of our business most directly
related to sustainability, including data research, tracking and analysis; policy development; designing
or assisting with sustainable initiatives related to development, environmental, economic and social
concerns; employee education and training; and self-auditing of our systems. Some of these efforts are
discussed below in greater detail.
Greenhouse Gas Reduction Program We have implemented a corporate energy policy within an
environmental framework, supported by a program for greenhouse gas (GHG) emissions reduction
through a number of energy efficiency measures. During this past year we completed a baseline
greenhouse gas emissions inventory that meets applicable standards and practices as established by
the GHG Protocol Corporate Accounting and Reporting Standard. The inventory accounts for the
amount of greenhouse gasses emitted into the atmosphere from Company activities (including direct
emissions from our own energy-use activities, and indirect issues from our purchased electricity), and
provides details on the methods used to make the emissions calculations on an entity-wide basis by
facility. We will use this greenhouse gas inventory to track emission trends and develop strategies and
policies to assess progress. Our goal is to measurably reduce Costco’s carbon footprint—the amount
of greenhouse gases produced directly and indirectly in our business, expressed in metric tons of
carbon dioxide (CO2).
Sustainable Construction The organization Leadership in Energy and Environmental Design
(LEED) has created a certification program that is nationally accepted as a benchmark for green
building design and construction. Our metal pre-engineered warehouse design, one of the warehouse
design styles we have commonly built over the past several years, is consistent with the requirements
of the Silver Level LEED Standard. Our metal building envelopes are all insulated to meet or exceed
current energy code requirements, and our main building structure is a pre-engineered system that
uses 100% recycled steel material and is designed to minimize the amount of material utilized. The
roof materials used on our metal pre-engineered warehouse are 100% recycled standing seam metal
panels, designed to maximize efficiency for spanning the structure; and the exterior skin of the building
is also 100% recycled metal. In 2008, we opened our first certified Silver Level warehouse in
New Jersey, with few changes to our basic building specifications described above. Additionally, over
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