BOSTON, October 16, 2024 – In response to a shareholder proposal from Green Century°, Costco Wholesale Corporation* committed to publishing a comprehensive deforestation assessment and action plan for its Kirkland Signature brand. In exchange, Green Century and co-filer Boston Common Asset Management agreed to withdraw the proposal.
“Nature-related risks have emerged as a high priority issue for investors in the last year and we applaud Costco for strengthening its efforts to protect vital habitats around the world, said Leslie Samuelrich, President of Green Century Funds. “Millions of Costco members will be gratified to know that their favorite Kirkland Signature items may be moving towards protecting rather than harming tropical forests, home to species from jaguars to giant otters.”
Costco says it plans to release its deforestation assessment and action plan by the end of 2025. The disclosure will lay out Costco’s roadmap to protect forests and other natural landscapes from deforestation when sourcing its beef, palm oil, soy and wood products. Those industries combined drive nearly three-quarters of tropical deforestation.
Costco to consider first-ever ‘no-deforestation’ targets
Today, nearly one-third of U.S. consumers shop at Costco, making it the third-largest retailer in the world behind Amazon and Walmart. Kirkland-brand items generated $56 billion in revenue for Costco last fiscal year – more than Nike, Coca-Cola, and United Airlines. The brand’s massive footprint means any incremental commitment to protect the planet has an outsized effect.
Many countries implemented new policies last year to preserve forests, promote biodiversity and help the climate. While Costco did not commit to fully eliminating deforestation from its Kirkland Signature brand supply chains, the wholesaler stated that it will consider adopting time-bound deforestation- and conversion-free (DCF) commitments for beef, soy, palm oil and/or wood products in its forthcoming deforestation action plan.
“Costco knows it shouldn’t destroy tropical forests to stock its shelves,” said Annie Sanders, Director of Shareholder Advocacy at Green Century. “We appreciate this step and encourage the company to further protect global forests by setting time-bound no-deforestation targets across its supply chain.”
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About Green Century
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of 9.30.2024, Costco Wholesale Corporation comprised 1.38%, 0.00% and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund, respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please visit www.greencentury.com, email info@greencentury.com, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. UMB Distribution Services, LLC is not an affiliate of Green Century or any of its affiliates. October 2024.