As 2021 ended, so did the Eighth consecutive yearRecord-breaking global temperatures a disruptive and destructive byproduct of climate changes. There is some hope in 2022. Unprecedented vote by 69.9% of Costco shareholders at the annual general meetingSupported a proposal asking the retail giant to set greenhouse emission reduction targets to allow it to achieve net zero emissions by 2050.
This is a tremendous win for climate and forests. The 69.9% voting investors that supported the proposal in opposition of the Costco board’s unanimous recommendation that shareholders vote against it was a remarkable victory. This vote is actually the first to be directly asked by a corporation to set science based emission reduction targets through resolution.
Humans have increased their dependence on fossil fuels to power their cars, cities, and industry since the industrial revolution. As we expanded across continents people destroyed one of our most precious resources and best natural tools to fight global warming forests. Our forests, from the tropics to Arctic, have been absorbing carbon dioxide in the atmosphere for centuries and locking it away in their soils and trees for hundreds of years. This stored carbon is released and reduced by reducing the amount of carbon dioxide in the atmosphere. Burning fossil fuels combined with the destruction of forests is a deadly combination, which has led to the current climate crisis.
A shareholder vote like the one taken by Costcos can have a direct effect on this vicious circle. This resolution explicitly addresses forest and climate change. Costco must include emissions not only from its direct operations and energy consumption, but also indirect actions by its suppliers. This means Costco should address the deforestation caused by its supply chain, which is mainly driven by the production and consumption of palm oil. Soy, beef, soybean, cocoa, pulp/paper, and soy. American consumers often don’t know where their products are coming from, and it is difficult for them to do so. Costco, which sells these products in the form personal care products, furniture and processed foods, has the power to stop the environmental destruction at its source.
Costcos shareholders have voted in favor of this shareholder resolution. This asks the company to set targets that are consistent with the shareholders’ expectations. Intergovernmental Panel on Climate Changeadvisory to limit the planet’s temperature rise to 1.5 degrees Celsius. The proposal recommends Costco usage Science Based Targets Initiative(SBTi), which allows companies to track and set their carbon reduction goals in accordance with the IPCCs advisory. We would be well on our path to tackling climate change if every company had these types of targets.
