Seafood Progress
Grocer’s Commitments to Sustainable and Socially Responsible Seafood
Seafood Progress Average : 68
Overview
Commitment to Sustainable Seafood
Which products does this grocer’s sustainable seafood commitment cover?
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Summary
Sustainability Commitment. Costco’s Seafood & Aquaculture Commitment (last updated December 2022) indicates that its commitment to sustainable seafood is informed by the United Nation’s Sustainable Development Goal #14. Costco informed SeaChoice that it is committed to sourcing all its fresh, frozen and canned private label (Kirkland Signature brand) wild products from MSC certified sources first. Where MSC certified products are not available, Costco will source from a Fishery Improvement Project (FIP). For it’s farmed products, Costco is committed to sourcing its private label products from ASC certified sources first. Where ASC certified products are not available, Costco will source from an Aquaculture Improvement Project (AIP). Costco has not published a timeline for achieving these commitments. The company also requires that all Kirkland Signature brand canned tuna suppliers are members of the Seafood Task Force and ISSF participants. Costco’s commitment further states that it is committed to only selling MSC certified (according to supplier reports) versions of the following wild species that it identifies as being at great risk: Atlantic cod, Atlantic halibut, Chilean sea bass, Greenland halibut, grouper, redfish (sourced outside of U.S. fisheries), shark, skates and rays, swordfish and bluefin tuna. The company is also committed to not selling wild King Salmon sourced from the Salish Sea due to documented concerns related to its decline. Finally, Costco has a full chain traceability policy in place that applies to all its Kirkland Signature products (personal communication, T. Lim, 18/04/2023).
Social Responsibility Commitment. Costco’s Human Rights Policy (last updated in December 2022) states that, as per the United Nations Sustainable Development Goal #8, Costco is committed to respecting and protecting the human rights, safety and dignity of the people who contribute to the success of its business. It states that Costco’s human rights procedures, goals and programs pertain to its employees and to the people in the supply chains that produce goods for Costco. This process is informed by Costco’s Code of Ethics which is based on international standards including the United Nations Guiding Principles (UNGPs) on Business and Human Rights, the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. Costco has a global Supplier Code of Conduct that reflects its commitment to social responsibility that all suppliers and their facilities as well as Costco-owned manufacturing facilities are required to abide by. The document includes a section on freedom of association which Costco’s suppliers are audited against. Where independent trade unions or representative workers organizations are absent, suppliers are subject to Costco’s remediation process as described below. Additionally, the retailer partnered with Verisk Maplecroft to conduct a materiality assessment on its core commodities (including seafood) a few years back, and have since taken action against those results. Finally, Costco reported on the social audit outcomes for all suppliers (including seafood) in FY2022 through its Human Rights Policy. The process for remedying non-compliance with low and critically performing suppliers includes corrective action plans and e-Learning lessons. Costco also has a global confidential ethics hotline to monitor compliance against its Human Rights Policy (personal communication, T. Lim, 22/02/2023).
Step Scores
1
Commitment on sustainable seafood
5
Education
6
Supporting System Improvements
Notes
Step Scores
5
Education
6
Taking Initiative
Notes
Step 1: Commitment
1
Commitment
Overall
Does the retailer support improvements in fisheries and aquaculture?
Commitment to Sustainable Seafood
How retailers’ sustainable seafood policies and commitments apply to different segments of their products.
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Seafood brand | |||
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1.1 The grocer has a publicly available commitment on environmentally sustainable seafood.
1.2 The grocer has a publicly available commitment on socially responsible seafood.
1.3 The grocer includes all banners that sell seafood in its sustainable seafood commitment.
1.4 The grocer includes all shelf stable and national brand products in its sustainable seafood commitment.
Step 2: Collecting Data
2
Collecting Data
2.1 The grocer collects data on scientific name.
Costco collects data on species scientific name for all its private label (Kirkland Signature) products and any endangered species it sells on an annual basis through its global supplier seafood survey (personal communication, T. Lim, 22/02/2023).
2.2 The grocer collects data on geographic origin.
Costco collects data on geographic origin for all its private label (Kirkland Signature) products and any endangered species it sells on an annual basis through its global supplier seafood survey (personal communication, T. Lim, 22/02/2023).
2.3 The grocer collects data on whether wild or farmed.
Costco collects data on whether products are wild or farmed for all its private label (Kirkland Signature) products and any endangered species it sells on an annual basis through its global supplier seafood survey (personal communication, T. Lim, 22/02/2023).
2.4 The grocer collects data on gear type or farming methods.
Costco collects data on gear type or farming method for all its private label (Kirkland Signature) products and any endangered species it sells on an annual basis through its global supplier seafood survey (personal communication, T. Lim, 22/02/2023).
Step 3: Sourcing
3
Responsible Sourcing
3.1 The grocer publishes a clear hierarchy demonstrating its sourcing priorities.
Costco publishes a clear hierarchy of standards that it uses for sourcing all private label (Kirkland Signature) brand products, and indicates that all species it considers at risk must be MSC certified. Costco’s third-party branded products are not held to any stated sustainability standard(s) (personal communication, T. Lim, 22/02/2023).
3.2 The grocer has reported on the percentage of its seafood sold in the last year that met its sustainability commitment by volume or value.
Costco reported to SeaChoice that 51% of its Kirkland Signature products by volume were in line with its commitment in 2022 (personal communication, T. Lim, 18/04/2023).
3.3 Suppliers are required to agree in writing to uphold the grocer's commitment to sustainable seafood.
Costco’s sustainability requirements are communicated by its buyers to its suppliers through product specification sheets. Costco also issues an annual global supplier seafood survey to capture key sourcing information, as well as its Seafood Policy which suppliers are required to sign and which reiterates Costco’s seafood commitments. Furthermore, the survey requires suppliers to indicate if products are certified, and Costco’s NGO partner, WWF, works with suppliers to verify this information (personal communication, T. Lim, 22/02/2023).
3.4 Suppliers are required to sign a code of conduct to uphold the grocer's commitment to socially responsible seafood.
Costco’s Human Rights Policy (last updated in December 2022) states that its global Supplier Code of Conduct applies to all suppliers and their facilities, as well as to Costco-owned manufacturing facilities. To align with international standards, the Code is derived from the policies, standards and conventions of the United Nations and the International Labour Organization, as well as other leading independent standards, such as the Responsible Business Alliance and Worldwide Responsible Accredited Production (WRAP). Where any applicable laws and regulations are absent, or exceeded by the Code, Costco expects its suppliers to uphold the higher standard. Costco emphasizes auditing suppliers of Kirkland Signatureâ„¢ merchandise and suppliers whose product or country of origin poses an increased risk. Costco reported on the social audit outcomes for all suppliers (including seafood) in FY2022 through its Human Rights Policy. The support provided to low and critically performing suppliers to remedy non-compliance includes corrective action plans and e-Learning lessons. Costco also has a global confidential ethics hotline to monitor compliance against its Human Rights Policy (personal communication, T. Lim, 22/02/2023).
Step 4: Transparency
4
Transparency
4.1 The grocer labels products with the information that allows consumers to make informed decisions.
And in-store audit conducted by SeaChoice on April 20, 2023 revealed that Costco Canada labels most of its Kirkland Signature products as wild or farmed, but no products with scientific name, geographic origin or gear type or farming method.
4.2 The grocer follows best practice guidelines for making environmental claims on its products.
All species deemed at risk by Costco must be labeled with the MSC logo. For Costco’s Kirkland Signature products, the application of eco-labels on applicable product labels is preferred but not required of its suppliers (personal communication, T. Lim, 22/02/2023).
4.3 Key information regarding the grocer's products has been made publicly available.
Costco does not publicly dislose this information.
4.4 The grocer reports how much of its seafood meets its sustainability criteria by volume or value of sales on an annual basis.
For two years in a row, Costco has reported to SeaChoice on the percentage of products by volume that met its commitment.
Step 5: Education
5
Education
5.1 Training programs are conducted for seafood staff.
Costco does not have ‘seafood counter staff’ in its stores as a result of its warehouse model. Costco’s seafood buying teams are well versed on its Fisheries and Aquaculture Policy and receive training on its Supplier Code of Conduct. Additional training is conducted on an ad hoc basis and as issues or concerns arise. When Costco receives inquiries from consumers on its seafood products, it is the responsibility of the buying team to address them (personal communication, T. Lim, 22/02/2023).
5.2 There is a description of the grocer's seafood commitments in store.
There is no description of Costco’s commitments to sustainable and socially responsible seafood in store (personal communication, T. Lim, 22/02/2023).
5.3 The grocer has taken actions to ensure its suppliers are aware of its sustainable seafood commitment.
Costco’s buying team informs seafood suppliers of its sourcing expectations and typically engages with them through in person meetings at suppliers’ facilities. If suppliers require assistance to meet Costco’s expectations, Costco directs them to its NGO partners, World Wildlife Federation (WWF) and Seafood Task Force (STF) for guidance. Additionally, all of Costco’s private label suppliers are subject to an annual social audit based on its Supplier Code of Conduct, and Costco provides these suppliers with e-learning modules to help address any concerns raised by the audit results (personal communication, T. Lim, 22/02/2023).
Step 6: Taking Initiative
6
Taking Initiative
6.1 Farmed Atlantic salmon (Salmo salar)
Within the past year, Costco attended a workshop in Chile coordinated by its NGO partner, WWF, in an effort to support a small pelagics FIP and endorse the new feed standard for farmed salmon. Additionally, Costco does carry any genetically engineered or modified farmed salmon and has no plans to sell these products (personal communication, T. Lim, 22/02/2023).
6.2 Farmed shrimp and prawns (Multiple spp).
Costco preferentially sources ASC certified versions of its Kirkland Signature shrimp products, and does not sell many third-party farmed shrimp products. Costco also financially supported farmed shrimp AIPs over the past year via ASC’s Improver Programme. Finally, Costco has full chain traceability of all its Kirkland Signature products (personal communications, T. Lim, 22/02/2023).
6.3 Skipjack tuna (Katsuwonus pelamis)
In November 2022, Costco signed on to a letter coordinated by the NGO Tuna Forum to the Western and Central Pacific Fisheries Commission (WCPFC) advocating for the implementation of harvest control rules. Additionally, Costco is a founding member of the Seafood Task Force (STF), which includes a government advocacy subgroup for skipjack tuna. All of Costco’s Kirkland Signature and third-party branded canned tuna suppliers are required to be members of the STF. Finally, the company reviews the product traceability and mapping to vessels of its Kirkland Signature canned tuna supply chains (personal communication, T. Lim, 22/02/2023).
6.4 Other species
Costco preferentially sources ASC certified versions of its farmed products and MSC versions of its wild products. Additionally, the company requires its wild shrimp suppliers to be members of a roundtable focused on the gulf of Mexico. Finally, the company has full chain traceability of all its Kirkland Signature seafood products (personal communication, T. Lim, 22/02/2023).
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