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?

Citi and its credit cards, not Costco, are the target here. Costco has made some good stances on sustainability, now it needs to clean up its credit card and choose a different issuer because Citi is one of the world’s dirtiest banks funding the expansion of oil, gas, and coal that are contributing to climate destruction. 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. Costco can make a significant positive impact by addressing Citi’s role as one of the largest sources of fossil fuel financing, which is causing the devastation of communities and life around the globe. 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. 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. I’m just trying to buy groceries at Costco, why is this important?

This is important because most of us are unaware of how the big banks are continuing to fund the expansion of dirty oil, coal, and gas that is contributing to climate disasters. So we are unconsciously fueling the profits of these dirty banks. Most of us have either been affected directly by climate change or know someone who has. This past summer millions grappled with extreme heat and smoky skies, lost lives and property to flooding and deadly wildfires, or withstood hurricanes. Some of us have even lost the right to clean air and water due to pollution from the fossil fuel industry. The fossil fuel industry also directly infringes on the rights of Indigenous people and their sovereignty by building on and polluting Indigenous peoples’ lands. Costco is the third biggest retailer in the US and has a lot of power and influence. Money talks! Costco’s motto is “do the right thing.”  Costco members, in particular, can play a vital role in persuading Costco to do the right thing on climate by pushing Citi to clean up its act.

3. 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 $5.5 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.

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.

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

You bet. Our goal is to persuade Costco to put pressure on Citi to improve its climate policies 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. 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!).

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. The next thing is to register for the launch call on October 18 at 5 pm Pacific/8 pm Eastern where we are going to give you the creative tools you need to have some fun collecting more petition signatures outside of a Costco warehouse near you and engaging even more Costco members to join this campaign. All are welcome and no experience is needed! Invite your friends and family who are fellow Costco members to come to the call with you. (Even if you can’t make it on Oct 18th, make sure to register anyways so that you’ll get a recording of the call.)

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 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.

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. Cancel the card after. 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. The next thing is to register for the launch call on October 18 at 5 pm Pacific/8 pm Eastern where we are going to give you the creative tools you need to have some fun collecting more petition signatures outside of a Costco warehouse near you, engaging even more Costco members to join this campaign, and raising the visibility of Citi’s dirty practices. (Even if you can’t make it on Oct 18th, make sure to register anyways so that you’ll get a recording of the call.)

8.  What are “financed emissions” and “cash emissions”?

Costco’s cash, investments, and co-branded credit cards can have a major positive—or negative—climate impact. The climate impact of a company’s banking stems from the fact that the bank loans out cash it gets from its clients, and a significant portion of that goes to providing loans to develop new coal, oil, and gas projects. When companies account for the financed emissions that result from their banking and investment practices, their carbon footprints are revealed to be much larger. Our coalition commissioned TOPO, a think tank, to conduct an independent analysis to estimate the indicative emissions generated by Costco’s banking. You can read more about TOPO’s analysis and methods here.