Costco 2009 Annual Report Download - page 15

SUSTAINABILITY: 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
Costco’s businesses operate in an environmentally and socially responsible and sustainable manner;
to reduce Costco’s use of resources and generation of waste; and to lead by example. The group has
been developing company-wide solutions to manage some 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. In January 2009, the
Corporate Sustainability and Energy Group issued the Corporate Sustainability Report, which is
available on the Costco.com website. Some of the highlights of this Report and the CSEG’s on-going
efforts are as follows:
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. In
2007 we ceased using HCFC refrigerant, an ozone-depleting substance, in our refrigeration systems,
and in 2008 we discontinued its use in our air conditioning systems. During this past year we
completed a baseline greenhouse gas emissions inventory that we believe meets standards
established by the GHG Protocol Corporate Accounting and Reporting Standard. The inventory
accounts for 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 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.
Sustainable Construction and Renewable Energy The organization Leadership in Energy and
Environmental Design (LEED) has 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 the past three years we have increased our installation of large-scale solar (photovoltaic) power
systems from two to a total of thirty-seven locations. By coordinating with state and federal incentive
programs, these systems allow us to reduce our carbon footprint and lower the cost of operating our
facilities. We continue to evaluate ways to improve energy efficiency.
Recycling and Waste Stream Management Waste stream reduction is another major emphasis of
our sustainability program. Since the 1980’s we have used an increasingly comprehensive recycling
program in our operations. Cardboard boxes, for example, used to ship and display merchandise are
later used by members to carry home their purchases, eliminating the need for plastic or paper bags.
Additionally, the tons of trash that our warehouses generate each week in the form of cardboard,
plastic, unusable produce, and other materials, much of which was once discarded, is now being
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