Costco Wholesale Corp.
Industry Group: Food Retailers
Country/Region: United States of America
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco’s frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates 591 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
ESG Risk Rating
Industry Group (1st = lowest risk)
Food Retailers 144 out of 193
Global Universe 8431 out of 15561
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Our Approach to Calculating ESG Risk
The ESG Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks.
Exposure refers to the extent to which a company is exposed to different material ESG issues. Our exposure score takes into consideration subindustry and company-specific factors such as its business model.
Costco Wholesale Corp.'s Exposure is Medium
Management refers to how well a company is managing its relevant ESG issues. Our management score assesses the robustness of a company's ESG programs, practices and policies.
Costco Wholesale Corp.'s Management of ESG Material Risk is Average
How do the ESG Risk Ratings work?
Top Material ESG Issues for Costco Wholesale Corp.
Understand how exposed companies are to specific material ESG issues and how well companies are managing these issues.
Highest Controversy level that has impacted Costco Wholesale Corp.'s ESG Risk Rating in the last three years
Highest Controversy Level