Environmental Management System Costco Wholesale

Table of Contents
1.

Introduction ........................................................................................................... 4

2.
Initial Environmental Review ............................................................................... 4
2.1. Initial Environmental Review Checklist ................................................................... 5
3.

Environmental Policy ........................................................................................... 5

4.
Environmental Aspects........................................................................................ 6
4.1. Activities, Products and Services ........................................................................... 6
4.2. Significant Environmental Aspects ......................................................................... 7
5. Baselining ............................................................................................................. 7
6. Benchmarking Loblaws Canada ...................................................................... 7
6.1. Waste Reduction .................................................................................................... 8
6.2. Food Waste ............................................................................................................ 8
6.3. Packaging ............................................................................................................... 8
6.4. Energy Reduction ................................................................................................... 8
6.5. Fuel Reduction ....................................................................................................... 8
7.

Proposed Objectives and Targets for SEAs ...................................................... 9

8.
Environmental Management Plan ....................................................................... 9
8.1. Proposed Actions ................................................................................................. 10
8.1.1. Energy Consumption for Lighting ......................................................................... 10
8.1.2. Energy Consumption for Heating/Air Conditioning (HVAC).................................. 10
8.1.3. Consumption of Nylon/Paper Bags ...................................................................... 10
8.1.4. Solid Waste from Used Light Bulbs and Cellphones ............................................ 10
8.1.5. Hazardous Waste from Car Batteries and Pharmaceuticals ................................ 11
8.1.6. Consumption of Water .......................................................................................... 11
8.1.7. Fuel for Vehicles ................................................................................................... 11
8.1.8. Energy Consumption from Heavy Machinery ....................................................... 11
8.1.9. Energy Consumption for Patient Testing Devices ................................................ 11
8.1.10. Monitoring and Measurement Techniques ......................................................... 11
9.

Legislative Requirements .................................................................................. 12

10. Additional Requirements ................................................................................... 13

10.1. Environmental Management System Representative ........................................... 13
10.2. Employee Environmental Training ........................................................................ 13
10.3. Environmental Awareness .................................................................................... 13
10.4. Communication ..................................................................................................... 13
10.5. Documentation and Document Control ................................................................. 14
10.6. Operational Control ............................................................................................... 14

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10.7. Emergency Planning and Response .................................................................... 14
10.8. Environmental Monitoring and Measuring ............................................................ 15
10.9. Non-Conformance, Preventive and Corrective Action .......................................... 15
10.10.Records ................................................................................................................ 15
10.11.Audits ................................................................................................................... 15
10.12.Management Review ............................................................................................ 15
References
Appendices
Appendix A Initial Environmental Review Checklist
Appendix B Significant Environmental Aspects Chart

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Environmental Management System Costco Wholesale

1.

Introduction

Costco Wholesale is a Canadian enterprise involved in the wholesale of various

merchandise including appliances, baby and kids materials, farm equipment,
computers, drugs, pet supplies, home and decoration, health and beauty paraphernalia
and so on. The Costco Wholesale Corporation is an international membership
storehouse that operates with the general name of Costco Wholesale.
This environmental audit was carried out in accordance with ISO 14001 to assess
different parts of the business with an aim to ensure environmental compliance and
acceptability with international standards making it easy for the Company to compete
effectively with other business enterprises involved in the provision of similar goods and
services. This report serves to have an effective Environmental Management System
(EMS) process that will enable Costco Wholesale to reduce its environmental impacts
and increase its operating efficiency. This process includes an Initial Environmental
Review (IER), an environmental policy, assessment of environmental aspects and
impacts, baselining and benchmarking, development of environmental targets and
objectives, as well as a proposed plan of action.
Observations from the environmental audit shows different areas of significance where
the Company could save funds and still be effective in its business transactions.
Specifically, these aspects are waste generation and energy consumption. This report
suggests ways to ensure that there is a reduction in these areas.
There is a need for Costco Wholesale to implement an internal reporting system to
monitor environmental performances. This will ensure that its objectives and targets are
met and that there is continual improvement so that waste generation and energy
consumption are reduced while the Companys profit increases. The provision of this
information will help management to take action when required and redefine its
business strategies and policies where necessary and also communicate such to every
arm of its operation.
Furthermore, an EMS Representative must be appointed to oversee the implementation
of this EMS to ensure that the implementation is done in phases to promote
effectiveness. Training of personnel is also crucial to ensure that the objectives of the
EMS can be communicated and where necessary, a change in behavior can be
enforced in staff. Internal auditing and a time limit for its execution must be put in place
and the EMS Representative is saddled with this responsibility.
2.

Initial Environmental Review

The first step in the establishment and implementation of an Environmental

Management System is the IER. The purpose of the IER is to highlight the
environmental deficiencies within the Company and review the current state of the

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Companys environmental performance, existing systems and policies for analysis and
improvement. The strengths, weaknesses, risks and challenges within Costco
Wholesale will be identified in order to improve and reinforce the Companys
environmental commitments and responsibilities. The IER will also provide the basis for
Costcos environmental policy.
2.1.

Initial Environmental Review Checklist

The IER Checklist was completed to ensure that all the elements stated in the IER were
attended to during the interview and investigation process. The IER Checklist can be
found in Appendix A.
3.

Environmental Policy

Costco Wholesale is committed to ensuring a sustainable environment for current

generations and generations to come while also setting the stage for a more
responsible organization.
Costco Wholesale is committed to controlling and improving environmental performance
with respect to significant environmental aspects of its products, activities and services.
Costco Wholesale will work towards reducing costs and improving eco-efficiency, which
has been identified as the most effective means of reducing the impact on the natural
environment. Costco Wholesale is committed to protecting the values and choices that
its members have become accustomed to.
Costco Wholesale focuses its environmental policy on its energy management, carbon
emission footprint, development and site design according to LEED, packaging design
and recycling and waste management. A description of each area can be found below.
Energy Management

Tracking energy use and identifying ways of reducing energy

consumption, as well as using a warehouse energy
management system.

Carbon Emission
Footprint

The business and best practices of Costco Wholesale are

aligned with reducing greenhouse gas (GHG) emissions and
increasing carbon efficiency. Increasing carbon efficiency will
be achieved through bulk shipments, minimizing
transportation and using a highly efficient depot distribution
system.

Development and Site

Design According to

Costco Wholesale is committed to property improvements

using eco-friendly technology to obtain Green, Silver and

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LEED

Gold LEED certifications. Such improvements will be

achieved through the implementation of solar panels in
facilities, bioswale pollution prevention, bioretentive rain
gardens in green areas, storm water management as well as
using pervious pavement in paved areas.

Packaging Design

Costco Wholesale is committed to ensuring sustainable

packaging by focusing on the reduction in the total amount of
material required, opportunities for re-using materials and
securing durable and economical materials.

Recycling and Waste

Management

Costco Wholesale seeks to develop a recycling and waste

management system focused on energy reduction and the
diversion of waste from landfills. The system would include
reusing boxes, food court recycling programs, sling trash
compactors as well as incentivizing source separation from
bulk facilities and monitoring the amount of post-recycled
waste diverted from disposal.

4.

Environmental Aspects

4.1.

Activities, Products and Services

Costco Wholesale offers a variety of Activities, Products and Services (APS). The
sectors of Costco Wholesale and their subsequent APS are presented below in Table 1.
Table 1. Activities, Products and Services (APS) for Costco Wholesale.
Sector

Activities
Indoor maintenance
Outdoor maintenance
Stocking
Bulk storage
Environmental and emergency
response
Communication

Retail

Food Court

Indoor maintenance
Preparation/handling of food
Stocking
Communication

Pharmacy and
Optical/Hearing
Centres

Indoor maintenance
Preparation/handing of prescriptions
Stocking

February 22, 2016

Products
Appliances
Automotive
Baby, kids and toys
Electronics
Grocery
Funeral
Furniture
Health and beauty
Home, dcor and
improvement
Jewellery and fashion
Office
Patio, lawn and garden
Pet supplies
Sports and fitness
Travel and luggage
Food products

Prescriptions

Services
Check-out
Returns/exchanges
Membership
services

Check-out

Check-out
Clinical services

Environmental Management System Costco Wholesale

Photo Centre

4.2.

Communication

Indoor maintenance
Preparation/handling of photos
Stocking
Communication

Photos
Paper products (calendars,
cards, etc.)

Check-out
Ink cartridge refills
Printing services
Transfer of home
movies to DVDs

Significant Environmental Aspects

All Significant Environmental Aspects (SEAs) related to Costco Wholesale were

identified and can be found in Appendix B.
Of all the SEAs identified and documented, two SEAs were selected to be of particular
importance to the Company. The EMS of the Company will be heavily focused on these
two SEAs. The selected SEAs are as follows:
1.
2.

Generation of Waste
Energy Consumption

4.3.

Significance Process

Generation of waste and energy consumption were selected as the two most significant
SEAs upon review of the Significant Environmental Aspects Chart found in Appendix
B. It can be seen that energy consumption and waste generation are the two most
common direct impacts from the Companys activities, products and services. Virtually
every activity, product and service related to Costco Wholesale consumes energy and
results in some form of waste generation. Thus, it is imperative that these two SEAs are
thoroughly addressed.
5. Baselining
Quantitative data collection for Costco Wholesales baseline report was not accessible
at this time due to confidentiality issues. The baselining process will enable Costco
Wholesale to measure its initial environmental performance of each aspect and
compare the measurement to future progress or lack thereof in each aspect. A year of
internal audits must also occur so that the Company can achieve a baseline to
determine its progress for that year.
6. Benchmarking Loblaws Canada
Costco Wholesale will be benchmarked against Loblaws Canada in order to measure
any progress or a lack thereof. Loblaws Canada is a suitable candidate for

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benchmarking as the Company achieved the following targets in different areas of its
business.
6.1.

Waste Reduction

Loblaws Canada diverted 81% of its distribution centre-generated waste nationally.

There was also an increase in the use of Reusable Plastic Containers (RPCs) to 14.8
million cases. It diverted approximately 1,135,000 pounds of plastic plant pots and flats
from landfill in 2012. This contributed to a grand total of 5,235,000 pounds of plastic
plant pots and flats diverted from landfill since the commencement of its national
recycling program in 2008. Furthermore, it established the roll out e-stubs initiative (i.e.
paperless paystubs) for colleagues at corporate stores and distribution centres.
6.2.

Food Waste

Loblaws Canada initiated a pilot program to divert perishable foods in partnership with
food recovery programs. Loblaws Canada also monitors and assesses perishable food
waste in its corporate stores and distribution centres
6.3.

Packaging

Loblaws Canada saw a reduction in non-recyclable packaging in 511 products on

display in different outlets. There is an effort toward overall 5% reduction in packaging
on control brand products. Loblaws Canada tested new types of recyclable packaging
and is working with different municipalities and regional recyclers to accept a broader
range of packaging for proper recycling.
6.4.

Energy Reduction

Loblaws Canada reduced its energy consumption by 3.1% per square foot and carried
out lighting retrofitting in 127 corporate stores. Loblaws Canada also implemented solar
panels to generate energy from renewable energy sources. In addition, it installed
transcritical oxygen refrigeration as an alternative to synthetic refrigeration.
6.5.

Fuel Reduction

Loblaws Canada uses long combination vehicles in its fleet to reduce the number of
vehicles used in the transportation of goods across the country. Shipping products

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by rail has also helped to reduce its carbon footprint and the subsequent generation of
GHGs from vehicles. Loblaws Canada added non-diesel burning equipment to its
vehicles to reduce the generation of GHGs during idling. It has also increased cube to
load volume by adding lift-a-deck systems to trucks used for the transportation of goods.
7.

Proposed Objectives and Targets for SEAs

Costco Wholesale has identified and set objectives and targets for its SEAs to ensure
environmental compliance and progress. The proposed objectives and targets for the
SEAs can be found in Table 3 below.
Table 3. Costco Wholesales register of environmental objectives and targets.
Aspect Description

Objective

Reduction
Target

Date

Key
Performance
Indicator
(KPI)

Use of electricity for

lightning

Reduce the annual consumption of

electricity for lightning

10%

April 3, 2016

kWh

Use of electricity for HVAC

Reduce the annual consumption of

electricity for HVAC

10%

April 3, 2016

kWh

Use of electricity for

electronics

Reduce the annual consumption of

electricity for electronics

10%

April 3, 2016

kWh

Consumption of
paper/nylon bags

Reduce annual consumption of paper and

nylon bags

20%

July 2, 2016

kg

Solid waste generation

from used light bulbs and
cellphones

Annual reduction of the generation of solid

waste (i.e. used light bulbs and cellphones)

5%

April 2, 2016

kg

Generation of recyclable
Materials

Reduce the annual generation of

recyclable materials

10%

February 5, 2016

kg

Generation of hazardous
wastes from car batteries
and pharmaceuticals

Monitor the streams and reduce the

generation of hazardous wastes materials
from car batteries and pharmaceuticals

5%

February 10, 2016

kg

Consumption of water

To reduce the amount of water consumed

10%

February 6, 2016

Consumption of fuel for

transportation vehicles

Annual reduction of fuel consumption used

in transport vehicles

10%

March 11, 2016

Use of heavy machinery

for transportation

Reduce the constant use of heavy

equipment for transportation (i.e. reduce
energy)

10%

February 3, 2016

kWh

Energy consumption
(powering devices for
testing patients)

Reduce energy consumption from

powering devices used in clinics

5%

April 5, 2016

kWh

8.

Environmental Management Plan

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In order to achieve the proposed objectives and targets for the identified SEAs, an
Environmental Management Plan (EMP) must be developed for the Company. The
specific EMP will help to ensure that every step is taken in order to mitigate activities
from Costco Wholesales environmental aspects. This will help the Company to reach
its environmental targets presented in Table 3.
8.1.

Proposed Actions

The following actions will be taken in each category to help ensure that Costco
Wholesale will reach its objectives and targets for the identified SEAs by the appropriate
deadlines.
8.1.1. Energy Consumption for Lighting
In order to reduce the consumption of energy for lighting, the following actions will be
taken:

Installation of light sensors to turn off the light when there is no movement during the
day
Tracking of energy consumption in all areas of the Costco Wholesale facility
Use of floodlights in large staging areas to reduce the quantity of light bulbs to be
used in the building

8.1.2. Energy Consumption for Heating/Air Conditioning (HVAC)

In order to reduce the consumption of energy for HVAC, Costco Wholesale facilities will
be modified so that natural air can circulate throughout the facility, requiring less
artificial heating and cooling.
8.1.3. Consumption of Nylon/Paper Bags
In order to reduce the consumption of disposable nylon and paper shopping bags,
customers will be encouraged by Costco Wholesale staff to adopt reusable shopping
bags. In addition, reusable shopping bags will be provided for sale within the Costco
Wholesale facility.
8.1.4. Solid Waste from Used Light Bulbs and Cellphones
In order to reduce the generation of waste from used light bulbs and cellphones, used
light bulbs and cell phones will be sent back to the producer company for proper
recycling instead of disposing of the products in landfills.

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Environmental Management System Costco Wholesale

8.1.5. Hazardous Waste from Car Batteries and Pharmaceuticals
In order to minimize hazardous waste from car batteries and pharmaceuticals, proper
storage techniques will be implemented, if needed, and training will be delivered to
individuals directly dealing with such materials at the Costco Wholesale facility.
8.1.6. Consumption of Water
In order to reduce the consumption of water, internal and external audits will be
conducted and used as a baseline to monitor the use and consumption
of water. Annual reviews of water utility bills will also be implemented to ensure that
water is being used sustainably at the Costco Wholesale facility.
8.1.7. Fuel for Vehicles
Research has shown that the consumption of fuel for vehicles is directly related to
changing speeds, poorly inflated tires, the engine of the vehicle and its heating/air
conditioning system. To encourage low fuel consumption, the following information will
be provided in training sessions for Costco Wholesale employees directly involved with
facility vehicles:

Drivers will be encouraged to reduce and maintain a constant speed.

Drivers must ensure that the vehicle tires are properly inflated.
Drivers must check and ensure that car engine is not turned on by accident.
Drivers must avoid the unnecessary use of the heating and cooling system of the
vehicle.
Drivers must maintain the vehicle by regularly changing air and oil filters.

8.1.8. Energy Consumption from Heavy Machinery

In order to reduce the use of heavy machinery, and subsequently reduce energy
consumption, Costco Wholesale staff directly dealing with heavy machinery will be
made aware that the machinery must only be used when necessary, and must be
powered off immediately after usage to conserve energy.
8.1.9. Energy Consumption for Patient Testing Devices
In order to reduce the consumption of energy for patient testing devices used during
clinical services offered at the Costco Wholesale facility, more energy efficient
technologies will be installed in the clinics. In addition, staff will be made aware to
ensure that devices are only powered on when required and are turned off immediately
after usage to conserve energy.
8.1.10. Monitoring and Measurement Techniques

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In order to implement monitoring and measuring techniques, the following steps will be
taken in each Costco Wholesale facility:

9.

Installation of thermostats to monitor energy consumption in each facility.

Establishment of a waste collection point where generated waste will be sorted into
different streams (e.g. paper recyclables, plastic recyclables, organics, etc.).
Non-hazardous waste will be weighed to keep track of the volumes and waste
generating areas.
Legislative Requirements

Environmental law is the legal framework that helps to govern the impacts of human
activities on our environment. In ensuring strict compliance to the environmental laws,
Costco Wholesale has established an Environmental Register which states specifically
which laws are directly related to its environmental aspects. The Environmental Register
will help to fulfil the legislative and regulatory obligations of Costco Wholesale with
respect to Canadian environmental law. Regular review of the Environmental Register
will be conducted by the EMS Officer in order to ensure that it is kept up to date with
new environmental legislation.
The website of the Ministry of the Environment and Climate Change (MOECC) and
other related journals were used to establish the following specific environmental laws
and guidelines related to Costco Wholesale presented in Table 2.
Table 2. Environmental laws and guidelines related to Costco Wholesale.
Description of
Environmental
Impact
Use of electricity for
computers, printers
and other store
electronics
Use of electricity for
lighting
Use of electricity for
HVAC
Generation of waste
paper and
recyclables from
store activities
Generation of solid
waste
Air emissions from
heating the facility
Spilling of ink/liquid
pharmaceuticals
Spill from storage and
use of diesel for
emergency generator

Legal or Other Requirement

Source

Evidence Required for

Compliance

Current
Compliance?
(Yes/No)
Yes

Annual reporting of electricity

usage to Ontario Energy Board
(OEB)

Electricity Act

Monitoring and reporting

of electricity usage to
OEB

Waste management plan,

waste audits, monitoring the
amount of waste generated and
provision of waste equipment
structure to aid recycling
Minimizing solid waste to
reduce impact to human health,
development of waste
management plan
Requisition of air specific
standard, permits and
certificates of approval
Ensure that ink and liquid drugs
are stored properly
Include spillage in annual report
and ensure that appropriate
training is given and spill kit is

Waste Reduction
Act

Annual report of waste

management plan to
MOECC

No

Ontario Regulation
347

Report of progress
regarding waste
management plan to
MOECC
Report of progress
regarding air emissions
to MOECC
Adequate storage

Yes

Certificate from ISO

14001:2004

Yes

February 22, 2016

Ontario Regulation
419/05

ISO 140001:2004

Yes
Yes

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Environmental Management System Costco Wholesale

Labour

Noise and nuisance

Safety

10.

provided
Ensure workers are safe and
that an Internal Responsibility
System (IRS) is established

Occupational Health
and Safety Act

Control plans to mitigate noise

Fire extinguishers and First Aid
Kits are available at facilities

Local bylaws
Fire Protection and
Prevention Act

Monitoring of IRS
progress, investigation
of work accidents and
refusals, constant
inspection
Preventative measures
such as monitoring and
checking of areas
susceptible to fires.
Mitigation measures
should be reported
annually to provincial fire
department services

Yes

Yes
Yes

Additional Requirements

10.1. Environmental Management System Representative

Costco Wholesale will appoint a management representative to hold general
responsibility over the EMS. There will be an EMS Representative appointed in each
Costco Wholesale facility. This individual is responsible for ensuring that departmental
heads are knowledgeable regarding the EMS and have informed/trained their staff to be
as well. This individual is also responsible for informing other employees of any
changes to the EMS.
10.2. Employee Environmental Training
Costco Wholesale will be training its Joint Health and Safety Committee (JHSC) at each
facility in order to obtain a sound understanding of ISO 14001. The skills acquired
during training will be utilized to train other members of staff and to equip staff with the
requirements of the EMS objectives. Employees that undergo training will sign a training
form for due diligence purposes, which will be filed and maintained in a binder for easy
access.
10.3. Environmental Awareness
The Costco Wholesale team at each facility will be knowledgeable regarding
Environmental Awareness Training which includes information about Costco
Wholesales environmental policy, environmental objectives and targets and its EMS.
The implementation of Costco Wholesales environmental management systems will be
completed by departmental heads in each facility.
10.4. Communication

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Internal and external communications regarding Costco Wholesales EMS will be
implemented at each facility. This will ensure that every Costco Wholesale employee is
knowledgeable regarding who the main EMS Representative is, and has access to their
contact information if contact is needed. Employees are also encouraged to pass the
contact information of the EMS Representative on to other authorities who require it,
including auditors.
10.5. Documentation and Document Control
All EMS documents will be stored in two formats at each facility: as a hard copy and
electronically. All copies are expected to have the appropriate name, date and version,
if applicable. Hard copies will be bound, assigned to specific binders and kept where
they can be accessible for staff for reference. Similarly, electronic copies will be filed
into appropriate folders and kept in a location that can be accessed by all staff for
reference. Review of EMS documents will be done by the EMS Representative and any
old policies, or documents that are no longer applicable, will be removed and updated to
reflect newer policies and changes.
10.6. Operational Control
Internal audits and the implementation of Costco Wholesales approval system will be
carried out at each facility to ensure that the operations of Costco Wholesales APS are
on par with its environmental policy.
10.7. Emergency Planning and Response
Costco Wholesale facilities may experience technical and/or natural emergency
situations including but not limited to: fires, explosions, spills of flammable liquids,
accidental release of toxic substances, loss of electrical power, loss of water supply,
loss of communications, floods, severe storms and severe temperatures.
In order to be better prepared to handle emergency situations, a process that includes
identifying the what, how and who will be implemented at each Costco Wholesale
facility. This process will include the following:

What will identify all varieties of emergency hazards that could take place in the
facility to enhance preparedness (e.g. fires, spills, loss of electrical power, etc.).
How will formulate arrangement procedures and action plans such as declaring the
emergency, initiating evacuation plans and emergency routes, using First Aid kits if
necessary and the installation of fire fighting equipment.

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Who will identify the individual(s) in charge to implement the action plan in an
emergency situation. The individual(s) will monitor and evaluate the implementation
of the action plans on a regular basis. The individual(s) responsible should be
knowledgeable of and properly trained in health and safety procedures.

Emergency plans and procedures for each Costco Wholesale will be documented in
hard copy, bound and placed in an easily accessible area for reference by all staff if and
when necessary. This documentation will include all possible emergencies,
consequences, required actions and procedures, available resources, the contact
information of personnel, facility floor plans and facility maps with evacuation routes.
10.8. Environmental Monitoring and Measuring
Internal audits will be carried out periodically at each facility to monitor the
environmental progress of Costco Wholesales environmental objectives and targets to
ensure that all employees are aware of the Companys policies.
10.9. Non-Conformance, Preventive and Corrective Action
For the purpose of due diligence, any issue that is identified during the monitoring and
measuring phase will be corrected in order to prevent any future problems. All
corrections and changes will be documented both in hard copy and electronically and
placed in areas that are easily accessible by staff.
10.10. Records
All Costco Wholesale records of training, compliance, implementation, change of policy,
etc. shall be kept in appropriate binders and placed in an accessible area in each facility
to ensure that the EMS is followed accordingly. Records can be requested to be seen
by an auditor.
10.11. Audits
An internal audit process and schedule will be monitored and implemented by the
EMS Representative at each facility to ensure that there is compliance with Costco
Wholesales EMS. All audits will be documented in hard copy and electronically, bound
and placed in an area easily accessible by staff.
10.12. Management Review

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Management reviews will be carried out periodically by the Costco Wholesales
management board members. Management reviews will be well-documented both in
hard copy and electronically. Results will be easily accessible by staff.

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16

References
Australian Government Department of the Environment (2016). Guide for Conducting
an Initial Environmental Review (IER). Retrieved from
https://www.environment.gov.au/system/files/pages/1fb781a6-fa14-4c46-884f486e53a87c86/files/env-review-checklist.pdf
Canadian Centre for Occupational Health and Safety (2016). OHS Answers Fact Sheets
Emergency Planning. Retrieved from
https://www.ccohs.ca/oshanswers/hsprograms/planning.html
Costco Wholesale (2016). Corporate Sustainability, Energy & Animal Welfare. Retrieved
from http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-sustainability
Loblaws Companies Limited (2012). 2012 Corporate Social Responsibility Report.
Retrieved from http://www.loblaw-reports.ca/responsibility/2012/targets-andachievements/respect-the-environment/
Practical advice for Northern Ireland Business (n.d.). Plan and set up your
environmental management system (EMS). Retrieved
https://www.nibusinessinfo.co.uk/content/carry-out-initial-environmental-review

Appendix A

Costco Wholesale
Initial Environmental Review Checklist

Store Equipment
Photocopiers, computers, faxes, printers. Note the condition, energy rating, and

~142 000 employees worldwide

brand. Are parts recyclable?

>500 locations
Is double-sided copying available and automatically programmed?

Utilizes an Energy Management System (EMS) to allow locations to control and manage
Is there any awareness material about energy use near the equipment?
HVAC and lights directly from the warehouse managers PC
Is equipment switched off after hours or when not in use?

Individual control using the EMS system allows managers to customize their operations to
their specific needs and in the process save considerable amounts of energy and dollars
Check for energy-saving functions

Photocell-controlled lighting triggers the day lighting management control system to turn
Is the equipment able to use recycled paper? Where is equipment located?
on or off the interior warehouse lights, as well as the exterior site lights
Is there a dedicated room, is there ventilation? Does equipment have an energy

saving/standby function?
*** See individual categories for specific energy-saving features
What is the ratio of personnel to equipment?

Store Paper Products and Consumables
Is there any awareness material about using recycled paper and other products?

Paper is recycled within the facilities using a triple waste stream (i.e. waste stream,
recyclables stream and food and paper stream)
What stationery products are used?

Costco offers recycled paper products for sale (e.g. green toilet paper, paper towels, etc.)
Is recycled paper used, and for what purposes? Note the % post-consumer product,
forest or plantation source, bleached etc.
Is paper collected for recycling?
How is paper disposal managed? i.e. how often, by whom, costs.
Store Lighting
Describe the lighting system

Uses ~200 skylights per facility to maximize natural light

Note: Number of lights controlled per switch, type of lights; fluorescent tubes,

Uses interior and exterior HID lighting systems

incandescent globes, energy saving globes Is lighting zoned and to what extent,

Interior sales lighting is reduced from 100% to 66% to 33% to 0%, based on daylight
are light fittings clean?
contribution through the skylights
How are old fluorescent tubes disposed?

Utilize high-efficiency ballasts (electronic for fluorescent and high efficiency HD ballasts)
Do screens or furnishings block natural light? Are blinds available to control glare and radiant
Utilize high-efficiency light source (pulse start Metal Halide (HID) and bi-level switching for
heat?
fluorescent fixtures

Utilize LED lighting in jewellery cases and freezer coolers

LED canopy on gas stations

LED entrance canopy light

Indoor Air Quality
Ventilation: Do print rooms, garages and basement car parking have exhaust systems?

HVAC comfort systems are controlled by a computerized building management system to

maximize efficiency and reduce costs
What system is in place to control temperature? Is the cooling tower and system
maintained in accordance with AS3666 Air Handling and Water Systems of Buildings -

Utilizes dozens of fans inside the facility for the destratification of air (i.e. to move warm air
Microbial Control? Obtain available reports.
at the ceiling down to the floor to reduce the energy load for the HVAC unit)
Has Legionella monitoring been undertaken? (may be covered by existing OH&S monitoring)

Utilize only high-efficiency air conditioning units

Utilize variable speed motors on make-up air units and booster pumps

Energy
Is there an Energy Management Policy? Has the Energy Management Policy

Building envelopes are al insulated to meet the current energy code requirements or
been implemented?
better
Is there an Energy Management Plan? Has the Energy Management Plan been

Use of exterior architectural panels made from recycled materials

implemented?

Pre-engineered metal building is designed and made utilizing the least amount of steel so
as to use the least amount of material

Costco Wholesale
Initial Environmental Review Checklist

The Plan may include initiatives such as: Information displays about energy efficiency/use.
(e.g. near light switches)
Have energy audits been conducted? Obtain report
Analysis of energy bills?
Installation of energy saving devices?
Adjusting timer switches for seasonal and daylight saving changes?
Allowing Staff access to stairs as an alternative to lifts?

When masonry and concrete are utilized, the materials are purchased locally to the project
to minimize the transportation and impact to local road networks
Buildings employ Cool Roof designs to reduce heat transfer/heat island effects through
the roof
Non-VOC floor sealant covers 100% of concrete warehouse sales floor
Five LEED certified locations in the USA
Place high priority on the sale of energy-efficient products such as Energy Star certified
appliances to members

Fire Safety
Is there a Fire Safety Policy?

There is a Fire Safety Policy in place, but details are not known
Has the Fire Safety Policy been implemented? Is there a Fire Safety Plan?

Emergency procedures in place in each facility

Has the Fire Safety Plan been implemented? The Plan may include initiatives such as: fire and

Fire extinguishers throughout the facility

emergency procedures, emergency telephone contact list, does emergency telephone contact
list include relevant environmental authorities.

Purchasing and Packaging

Is there a Packaging and Purchasing Policy? Has the Packaging and Purchasing Policy

Replacing PVC clamshell packs with paperboard-blister (i.e. printed paperboard and
been implemented?
recycled PET thermoforms) packaging
Are environmental issues factored into the Policies?

Replacing round container shapes to square container shapes (packaging change saves 600
outbound depot trucks per year)
Is packaging being reused, recycled or sent back to the supplier?

Saddle bags for fresh chicken (packaging change saves 224 truckloads of Styrofoam
materials annually)

Fruit clamshells made from recycled PET plastic (e.g. blueberries, grapes, Organic Spring
Mix and Mixed Baby Greens)

Service packaging changes in food court eliminated 1 million containers to landfill

Plastic wrap and paper are baled at each warehouse and sold into the commodities market

Shrink-wrap is recycled and processed into new products

Kitchens and Bathrooms
Number and Locations

Two large public washrooms per facility (one for women, one for men) near the Food Court
at the exit of the facility (but this may change depending on the facility)
Is there a Water Conservation Policy? Has the Water Conservation Policy been
implemented?

Electric hand drying facilities

Is there a Water Conservation Plan? Has the Water Conservation Plan been

Gas water heaters are direct vent and 94% efficient or greater
implemented?

High efficiency restroom fixtures (i.e. low flow fixtures) provide 40% water savings over
fixtures currently required by code
The Plan may include initiatives such as: Information displays about conserving water use.
Installation of water saving devices (eg screened faucets, dual-flush toilets).

Utilize reclaim tanks to capture heat released by refrigeration equipment to heat domestic
Notification and repair of leaking taps. Monitoring water consumption.
water in lieu of rejecting heat to the outside
Identification of high demand water use areas. Reduction strategies.

Refrigeration is based upon atmosphere-friendly cooling system in lieu of a freon-based

system
Investigation of sewer and stormwater discharge, determine where run-off enters
stormwater drains.

Anti-sweat controls to reduce condensation

Detailing vehicle washing (source of water, type of cleaning agents, draining of waste

Recycles meat scraps and rotisserie chicken grease to the animal feed industry
water)

Utilize chicken grease separators to separate the water and solids from the rotisserie
What types of hand drying facilities are available?
grease
e.g. cloth, electric or paper towel

Grease is picked up by a national contractor (clean grease has an increased value in the
biodiesel market as well as other uses)
Paper products (% post-consumer product, forest or plantation source, bleached)

Costco Wholesale
Initial Environmental Review Checklist

Cleaning products (are soaps and detergent phosphate free or biodegradable?)

List kitchen appliances (note energy rating and whether refrigerators are CFC free)
Have waste disposal costs ever been assessed? Can this be done?
Who collects waste and what charges apply?

Produce and deli waste is de-packaged and fill bins that the fresh produce is delivered in;
the bins are picked up local farmers, local worm farm operators that turn organic waste
into compost or local composting facilities

Emphasizes sustainably sourced products (examples include coffee, flowers, French green
beans, shrimp, tilapia and vanilla)

Hazardous Materials
Are hazardous materials present?

From available information, there are no hazardous materials present in warehouse

designs (e.g. PCBs, lead, etc.)
Have hazardous material audits been undertaken: (if yes, obtain report or include details)

Freon-based cooling systems replaced with atmosphere-friendly cooling systems

Asbestos?

USTs at Costco gas stations, which are corrosion-proof and double-walled and are
PCBs? (e.g. in light fittings)
continuously monitored for any leaks
Ozone depleting substances? (check fridges) Chemicals (cleaning/industrial)?

Costco has implemented 3E MSDS On Demand, 3E Poison & Exposure Hotline and 3E Spill
Lead (in paint coats, dust, soil, roof lining)? Are current Material Safety Data Sheets
Hotline programs throughout the organization to provide 24-7-365 access to 3E hazmat
available? Where? Who maintains them? Are they updated?
specialists via the HazMat Mission Control Center for MSDS requests, medical advice and
Are underground storage tanks present? If so, have the tanks been investigated? (Note: Check
access to toxicologists and physicians in the event of a poison or exposure incident and
boiler system fuel - Has the boiler fuel been converted from oil to gas previously? Where were
chemical cleanup advice if a hazardous material is spilled in the warehouse
oil tanks located?)

Is there a composting scheme?

Does landscaping make appropriate use of drought tolerant plants?
Describe irrigation system including the water source
Describe herbicide and pesticide use. Are there any community problems? i.e.
interactions with humans e.g. noise, traffic, flora and fauna

Landscaped and External Areas

Bioswale pollution prevention

Bio-retention rain garden

Stormwater management using swales, rain garden and landscape islands

Pervious sustainable pavement in paved areas

Use of drought tolerant, water efficient plant materials

Transport
Does carpooling take place?

Do many people use public transport? What are public transport facilities

like?
Inspect car parks: How many and where are they? Note condition of stormwater drains in the
car park

Cars, vans, trucks number, size and make, Green Vehicle Guide rating.
Delivery/Loading dock inspection. What supplies are delivered (chemicals, office supplies,
machinery)?
Is there potential of spillage?
Vehicle Maintenance: How are vehicles maintained? Who is responsible? Where are
records kept?

Vehicles

Yes carpooling is in place

Minimize number of deliveries of product to warehouses by consolidation of freight at
distribution centres and maximizing the load per truck
Use of Fast Pass system to improve the flow of trailers in and out of depots
Depots strategically located throughout North America to provide the most efficient routes
of transportation to facilities by maximizing full-trailer quantities to each location
Import container movement from the port to depot occurs at night to allow for quicker
deliveries and less fuel and emissions in peak traffic times
Utilizes plastic pallets, which reduce deforestation, have a much longer use-life and are
repairable and recyclable
Utilizes quad pallet jacks that move freight at one time resulting in less moves and less
energy

Gas stations have corrosion-proof double-wall USTs and piping that are continuously
monitored for leaks through an electronic monitoring system
Secondary containment system ensures that even a rare leak will not actually reach the
environment
If a leak is detected, the entire station will automatically shut down

Costco Wholesale
Initial Environmental Review Checklist

Is fuel type and consumption monitored?

What are the utilities in place and what steps are taken to reduce the bills?

Utility Bills

Electronic alarm systems for leaks are monitored around the clock by employees and
outside service
Gas stations have underground oil/water separators which trap surface hydrocarbons
before they can enter the storm sewer system
Gas stations have vapour recovery systems, which capture gasoline vapors displaced during
vehicle refueling and route vapours back to the USTs
Gas station attendants are trained on how to properly clean up surface spills before it
evaporates or finds its way into the soil (attendants use a fuel migration solution called
FM-186 which is sprayed on the spill and mixed in with a brush to render the spill nonflammable)

As a result of diverting 17 509 tonnes of post-recycled waste from landfill, Costco has:
Avoided 17 509 tonnes of CO2 equivalent GHGs
Reduced the need for 4 377 tonnes of coal or 735 378 gallons of fuel oil
Achieved GHG offsets equal to pulling more than 3 648 cars off the road for a year
Generated 9 629 950 kWh of renewable electricity

Appendix B

Costco Wholesale
Significant Environmental Aspects (SEAs) Chart

Sector
Retail

Process (APS)

Indirect Aspects

Direct Aspects

Disposal costs,
customers producing
waste

Waste (from packaging)

Reduced landfill capacity

and land quality

Supply chain
implications

Energy consumption
(generating goods)

Increase in electricity
bills, reduction of
resources and air quality

Cost savings from

using
recyclable/reusable
materials

Generation of recyclable and

reusable materials

Preservation of natural
resources and landfill
capacity

Increased company
costs

Energy consumption

Increase in electricity
bills, reduction of
resources and air quality

Disposal costs

Generation of waste (nonhazardous)

Reduced landfill capacity

and land quality

Increased company
costs

Water consumption

Increase in water bills,

reduction of resources

Increased company
costs

Energy consumption (lighting,

toilets, sinks, etc.)

Increase in electricity
bills, reduction of
resources and air quality

Disposal costs

Generation of wastewater

Sewage, reduced land

quality

Cost savings from

producing
compostable waste

Generation of organic waste

Preservation of landfill
capacity, available for
composting

Increased company
costs

Energy consumption (lighting,

kitchen appliances)

Increase in electricity
bills, reduction of
resources and air quality

Outdoor maintenance

Increased company
costs

Energy consumption (from

powering maintenance
equipment)

Increase in electricity
bills, reduction of
resources and air quality

Indoor maintenance

Disposal costs

Generation of wastewater

Sewage, reduced land

quality

Increased company
costs

Energy consumption (lighting,

electronics, HVAC, etc.)

Increase in electricity
bills, reduction of
resources and air quality

Disposal costs

Generation of solid waste

(from customers and staff)

Reduced landfill
capacity, reduced land
quality

Increased company
costs

Energy consumption
(computers, telephones, etc.)

Increase in electricity
bills, reduction of
resources and air quality

Disposal costs

Generation of solid waste

(from staff)

Reduced landfill
capacity, reduced land
quality

Goods

Bulk storage

Bathrooms

Food court

Administrative (offices)

Impacts

Costco Wholesale
Significant Environmental Aspects (SEAs) Chart

Pharmacy/
Optical/
Hearing

Photo
Centre

Communication
(telephone, fax, etc.)

Increased company
costs

Energy consumption (from

powering communication
devices)

Increase in electricity
bills, reduction of
resources and air quality

Medical appointments
(vision/hearing)

Increased company
costs

Energy consumption (powering

devices for testing patients)

Increase in electricity
bills, reduction of
resources and air quality

Medical prescriptions
(over the counter)

Disposal costs,
customers producing
waste

Waste (solid waste from

packaging, medical waste)

Reduced landfill
capacity, reduced land
quality

Diet and nutritional

supplements

Disposal costs,
customers producing
waste

Waste (solid waste from

packaging, product waste)

Reduced landfill
capacity, reduced land
quality

Maintenance/
housekeeping (cleaning,
technological
maintenance)

Disposal costs

Waste (wastewater, potential

medical waste from spills)

Reduced landfill
capacity, reduced land
quality

Increased company
costs

Energy consumption

Increase in electricity
bills, reduction of
resources and air quality

Other products (glasses,

contact lenses, hearing
aids, etc.)

Disposal costs,
customers producing
waste

Waste (solid waste from

packaging, actual products)

Reduced landfill
capacity, reduced land
quality

Photo lab

Increased company
costs

Energy consumption (powering

devices)

Increase in electricity
bills, reduction of
resources and air quality

Printing services

Increased company
costs

Energy consumption (powering

devices)

Increase in electricity
bills, reduction of
resources and air quality

Disposal costs,
customers producing
waste

Waste (paper waste)

Reduced landfill
capacity, reduced land
quality

Ink cartridges (for

purchase, refills)

Disposal costs,
customers producing
waste

Waste (solid waste from

packaging, ink waste)

Reduced landfill
capacity, reduced land
quality

Other products
(electronics, frames,
etc.)

Disposal costs,
customers producing
waste

Waste (solid waste from

packaging, products)

Reduced landfill
capacity, reduced land
quality