At Domini, we conduct proprietary environmental, social and governance (ESG) research to evaluate the impact of our investments. We believe our research—which is guided by Impact Investment Standards—can help us identify strong long-term investments that also contribute to building a more just and sustainable economy. Below, we highlight some initiatives of one company that stood out in our research.
In today’s world, effectively addressing environmental and social challenges requires bold solutions. Increasing access to life-saving medications and accelerating the adoption of electric vehicles are vital components of a broader strategy that businesses must embrace to ensure a sustainable future. With their vast supply chains and extensive reach, companies in the retail sector have a unique opportunity to lead in these areas. By aligning their business practices with critical societal needs, they can drive positive change while ensuring long-term success.
Costco Wholesale Corporation, one of the world’s largest retailers, is at the forefront of these efforts. Its commitment to sustainability and social responsibility, demonstrated through several forward-thinking initiatives, reflects its ability to influence positive change at scale.
Delivering Life-Saving Medicine
Pharmacies are essential in addressing the U.S. opioid crisis, and Costco is making a significant contribution. As of 2023, Costco has provided naloxone, a life-saving medication that reverses opioid overdoses, without requiring a prescription in the U.S. and Puerto Rico. This initiative improves access to critical care, particularly in communities disproportionately affected by the crisis. Costco’s proactive stance demonstrates a solid commitment to public health, offering a practical solution to a widespread national emergency.
Powering the Charge on Electrification
Costco is also driving the shift toward clean transportation by supporting the adoption of electric vehicles (EVs). Through the popular Costco Auto Program, the company has facilitated the purchase of approximately 90,000 EVs as of 2023. This initiative is driving a measurable reduction in transportation-related carbon emissions.
In addition to helping customers purchase EVs, Costco is investing in the infrastructure needed to support their use. The company has installed EV charging stations at over 50 warehouses across the U.S., Canada, South Korea, Spain, and the United Kingdom. In 2023, Costco opened its first fast EV charging station in Denver, Colorado, with plans to expand to over 20 additional locations. These efforts position Costco as a leader in building a sustainable transportation ecosystem.
Integrating Clean Energy Solutions
Costco’s commitment to clean energy extends beyond its customer offerings. In 2023, the company launched a pilot program utilizing electric yard tractors powered by solar energy to move trailers around its distribution centers. These electric tractors are replacing traditional diesel-powered equipment, significantly reducing emissions and energy consumption in Costco’s logistics operations.
With the Domini Impact Equity FundSM, you can invest in a diversified portfolio of ESG leaders. The Fund leverages our proprietary research to invest in stocks of U.S. companies with leading environmental and social practices.
Through initiatives like these, Costco is demonstrating how businesses can leverage their influence to make a tangible impact on communities and the environment. In an era where consumers increasingly prioritize responsible business practices, companies that take proactive steps to align their operations with societal needs will be better positioned for long-term success. Through thoughtful and innovative solutions, they can help shape a future that prioritizes both people and the planet, driving positive change on a large scale.