FAQs for Why Costco Should Drop Citibank

Many of us like shopping at Costco—free samples, infamous cakes, bulk buys, $1.50 hot dogs—and we’d like it even more if Costco shopped for a better, cleaner, climate-friendly credit card. There are other ways you can help too, as described in the FAQs below.

1. I like Costco. Why are you targeting Costco on climate?

Costco, the third largest retailer the US, is a powerful corporate client of Citibank. Costco’s climate action plan outlines steps to reduce its supply chain (Scope 3) emissions and achieve other sustainability goals, but Costco continues to contract with one of the dirtiest banks in the world to issue its co-branded credit card in the US. For Costco to achieve its own climate commitments, it should address the climate pollution associated with all of Costco’s suppliers, including its financial service providers.

Around one in three US residents shop at Costco warehouses, with membership growing most quickly among millennials and Gen Z. As many people are unaware of how big banks continue to fund the expansion of dirty oil and coal, we have an important opportunity to build the climate movement in the US through outreach to Costco members and potential members alike. We’re asking people to use a different Visa credit card when they shop at Costco warehouses or online, instead of the dirty Citi Costco credit card.

Citibank, not Costco, is the real target here. When big businesses like Costco bank with Wall Street giants that fund the dirty fossil fuel industry, especially Citibank, they are enabling the problem. Costco has an opportunity to be a climate leader in the retail sector. We want Costco to make good on its motto and “do the right thing” and clean up the pollution stemming from its Citi credit card.

2. Citi is a bank, not an oil or coal company. What’s the problem?

Without vital funding from banks, the oil, gas and coal industries would not be able to build new projects that are behind the continued warming of our planet. There is a global consensus among scientists that to stabilize our climate and reduce global warming pollution, there must be a rapid transition to clean, renewable energy, and that there can be no new investments to expand oil, gas, and coal.

Despite this warning, globally, big banks have pumped $6.9 trillion into these dirty projects since 2016 and Citi is the second biggest funder of fossil fuels in the world. Here are some examples of what Citi is funding: new oil and gas projects destroying the Amazon rainforest; new gas export terminals in the Gulf South that will add toxic pollution to communities in Louisiana and Texas; tar sands pipelines through the Great Lakes and Native American lands that threaten drinking water supplies for millions; loans to ConocoPhillips, the developer of the huge new Willow oil complex in Alaska. The impacts and pollution from Citi’s lending also has devastating impacts on Black, Brown, and Indigenous communities. Citi’s environmentally racist practices have been called out by community leaders from around the world.

If Citi leads in switching its funding from dirty to clean energy this could be a major way to reduce carbon pollution and the impacts of climate change, as well as invest in healthy communities.

3. What are the climate impacts of using a credit card issued by Citi?

A new report by Topo Finance, The Carbon Bankroll 2.0, describes how a large corporation’s choice of banking partner drives up its carbon emissions. The climate impact of an institution’s banking relationships stems from the fact that as much as 90% of an institution’s cash kept in a bank is loaned out by that bank, and a significant portion of that goes to providing loans to develop new coal, oil, and gas projects. Costco’s cash, investments, and co-branded credit cards can have a major positive—or negative—climate impact.

Third Act and Stop the Money Pipeline commissioned Topo Finance to conduct an independent analysis to estimate the global warming pollution associated with Costco’s cash holdings using carbon intensity figures averaged for the six big Wall Street banks (because aside from the Citi credit card which banks Costco partners with is not publicly available information). The findings are that the 2023 estimated indicative financed emissions enabled by Costco’s cash holdings is 4.02 million metric tons of CO2e. Costco’s cash emissions are equivalent to 85.3% of Costco’s operational emissions (Scope 1, 2, and 3) of 4.7 million metric tons (operational emissions come from energy used for heating, lighting, refrigeration, deliveries, and more). If cash emissions were considered part of Costco’s operational emissions, then this would be the majority source of its operational carbon footprint. Costco’s emissions from its “financial carbon footprint” are equivalent to emissions from 10 gas-fired power plants operating for a year.

If Costco continues to contract with Citi for its credit card and Citi continues to use its significant deposits to finance coal mines and oil extraction, we’ll continue to see increases in greenhouse gas emissions incompatible with global climate goals. Alec Connon’s op-ed in The Hill summarizes this report and makes the case that companies that care about climate change need to care about their choice of banks.

4. Will Costco switching credit cards really make a difference in the climate fight? 

Yes! Our goal is to persuade Costco that its contract with Citibank is becoming a liability in its US market. We want Costco  to put pressure on Citi to improve its climate policies or drop Citi because a message from a huge retailer and important client like Costco could have a significant impact on Citi. What’s the one thing that banks care about? Money. And Citi’s Costco Anywhere Visa card makes Citi a ton of money. So if Citi thinks that its business with Costco is going to be jeopardized because of Citi’s inadequate climate policies, then Citi will finally listen and clean up its act. Corporations like Costco need to choose banking partners that align with their goals in climate action and sustainability – so we’re targeting the third largest retailer in the world because they can make a big difference. We need to get the message out that no one wants to do business with a dirty bank!

5. I’m a Costco member. What else can I do to persuade Costco to clean up the climate impacts from its Citi credit card?

Costco members are especially important in this campaign, as they have a special role in telling Costco to clean up its credit card. We know Costco cares about its members and that its members have special opportunities and access to Costco warehouses and ways to complain to Costco directly. That’s why we particularly need Costco members taking action.

• The first thing to do as a Costco member is sign the petition and share it with other friends and family (especially fellow Costco members!). You’ll be joining 40,000 people who already signed and we want to get even more signers!
• After you sign the petition, you’ll be invited to take other digital and in-person actions to help persuade Costco to do the right thing.
• As a Costco member, you can provide written feedback at the warehouse kiosk or Customer Service desk, or submit feedback to Costco’s online form here.

6. I’m a Costco member and I have a Costco Anywhere Visa Card by Citi. What should I do?

If you are a Costco member, you can stop using the “Costco Anywhere Visa by Citi” credit card anytime and help deprive them of profits from your transactions. Costco stores accept any Visa card, so you can use a different Visa card. And you can find a more climate-friendly Visa card using these resources.

Before you cancel or cut-up your Costco Visa card, you will need to get a physical Costco membership card to use instead by going to the membership counter at any Costco store. Stop by the customer service desk to pick up a separate Costco membership card for your entrance ID. Let Costco know you won’t be using the Citi credit card anymore by leaving written feedback at the warehouse kiosk or submit feedback to Costco’s online form following these instructions.

Since Costco only provides Citi credit card rewards once per year (in February), do not cancel your Costco Citi Visa credit card until after you’ve received your annual reward certificate. Please also review tips about canceling a card and your credit score before you cancel or apply for any credit card.

7. I am not a Costco member. Can I sign the petition? What else can I do?

Any person concerned about climate change can sign the petition and share it with other friends and family (and any Costco members you may know). Once you sign the petition, you’ll be invited to take digital and in-person actions to help persuade Costco to do the right thing. We need Costco to understand that a lot of people know their Citibank partnership is bad for the planet and that’s part of why they elect to shop elsewhere.

 

Original FAQs were published in September 2023 when the campaign launched. FAQs were updated in July 2024.