Costco’s partnership with Citibank is environmentally and morally troubling

Costco’s credit card partnership with Citibank has resulted in significant environmental consequences. Since 2016, Citibank has invested a staggering $332 billion in new fossil fuel investments. This funding has contributed to climate-driven catastrophes worldwide as emissions from dirty energy continue to warm our planet with dire consequences.

For the past 20 years, significant portions of Colorado have experienced drought, and the Colorado River is in peril. This river provides water for 40 million people in seven states. We’ve experienced the devastating impacts of climate change locally with our 2013 flood and the 2021 horrific Marshall wildfire. Last July was the hottest month in recorded history in Colorado. Climatologists say 2023’s extreme heat is the product of a long-term warming trend caused by climate change.

Costco is the third-largest retailer in the U.S. and a big client of Citibank’s. Costco has the power to persuade Citibank to switch its funding from dirty to clean energy.

Costco considers itself an ethical company with strong values. They are doing some good things like paying employees well, agreeing to reduce plastic packaging, selling more organic food and switching to cage-free eggs. An ethical company should not do business with an unethical corporate partner like Citibank. There are other climate-friendly credit card company options.

Costco has the opportunity to be a leader among large retailers by addressing the climate impacts of its banking relationships. They should follow their own corporate motto and “do the right thing” by either using their power to persuade Citibank to clean up its investing or chose a better credit card banking partner.