Costco 2011 Annual Report Download - page 15

the sales penetration of our private label items in the future. We rely on trademark and copyright law,
trade secret protection, and confidentiality and license agreements with our employees and others to
protect our proprietary rights. Effective intellectual property protection may not be available in every
country in which we operate.
SUSTAINABILITY: ENERGY MANAGEMENT, CONSERVATION AND THE “GREENING” OF COSTCO
Corporate Sustainability and Energy Group We are mindful of our responsibilities as an
environmental steward in managing our operations in an energy-efficient and environmentally friendly
manner. In 2007, we created the Corporate Sustainability and Energy Group (CSEG) in our Company
to 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 developed 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, CSEG
issued a Corporate Sustainability Report, which is available, with updates, on the Costco.com website.
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 new and replacement
refrigeration systems, and in 2008 we discontinued its use in new and replacement air conditioning
systems. We have completed a greenhouse gas emissions inventory for our operations in the
U.S., Canada and the UK 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 by facility on an entity-wide basis. We use this inventory to track emission
trends and to assess progress. Ongoing, 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. Costco’s metal warehouse design, one of the warehouse
design styles we have 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 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 regard to renewable
energy, by the end of calendar 2011 we will have in operation large rooftop solar photovoltaic systems
at 60 of our facilities, in Hawaii, California, New Mexico, and New Jersey. They are projected to
generate 55 million kWh of electricity per year. We also continue to expand the use of non-chemical
water treatment systems used in our cooling towers to both reduce the amount of chemicals going into
sewer systems and, where possible, reuse that water for site irrigation. By coordinating with state and
federal incentive programs, these and other energy-saving systems help us reduce our carbon footprint
and lower the cost of operating our facilities. We continue to evaluate additional opportunities to
improve energy efficiency.
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