Costco
Lacks transparency. Publishes some details, but doesn't show its workers are paid and treated fairly.
Last researched 2 November 2026 · 5 sources
US membership warehouse club selling groceries and goods in bulk.
We couldn't confirm where Costco makes most of its groceries and household goods in bulk.
Also worth knowing
Most own-brand and fresh food is grown or made in countries such as Australia and China.
Other warehouse clubs and bulk brands
Nothing we've rated in warehouse clubs and bulk is better than Lacks transparency yet.
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Why it's graded Lacks transparency
- Not met: Meets 3 of 6 Good requirements.
- Holds the grade back: It doesn't show that workers are paid a living wage, and isn't certified as working towards one. On Track needs at least one of these.
- It isn't Harm on record, because there's no serious confirmed problem on its record.
- Lacks transparency is still a poor grade: in supply chains like this, workers who can't be seen to be treated fairly are usually underpaid or unprotected.
Good requirements 3 of 6
- Not met: Pays a living wage, or holds a strong fair-pay certificationLiving wage: no evidence
- Met: Respects worker rights
- Met: Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- Met: No confirmed child or forced labour findings or linksAn unconfirmed report of forced labour is listed below. It doesn't affect the grade.
- Not met: Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that list
- Not met: Farm and labour hire checks published, and high-risk ingredients (palm oil) traced or certified where they're a major part of its rangeNot traced or certified: palm oil
Red flags 1
- Red flag: No evidence it pays a living wage
Stars it would earn as Good
None yet. Stars only show on Good companies. About stars
Where it's made
We couldn't confirm where Costco makes most of its products, so this shows where own-brand and fresh food is usually grown or made.
| Country | Share | Worker rights | Legal minimum wage | Forced labour risk |
|---|---|---|---|---|
| Australia | 65% | Strong protections | About a living wage | Low |
| China | 12% | No guarantee of rights | Below a living wage | Moderate |
| New Zealand | 5% | Strong protections | About a living wage | Low |
| Thailand | 5% | No guarantee of rights | Below a living wage | Moderate |
| Italy | 4% | Strong protections | Close to a living wage | Low |
| Vietnam | 3% | Systematic violations | Well below a living wage | Moderate |
| Malaysia | 3% | No guarantee of rights | Below a living wage | Moderate |
| India | 3% | No guarantee of rights | Well below a living wage | High |
Evidence
What we found
- Modern slavery statement
- Independent social audits of all its main factories
- It requires ethical audits or Fair Farms certification of its Australian suppliers, but doesn't publish what the checks find and what workers were repaid, so it can't show that farm and labour hire workers get what they're owed.
- Doesn't show where its palm oil comes from. Palm oil is linked to forced and child labour on some Malaysian and Indonesian plantations, so it can't be graded Good until it traces or certifies it.
Research notes Costco runs 15 warehouses in Australia selling its own Kirkland Signature brand alongside others, but its Australian modern slavery statement doesn't say where products are made or grown, name suppliers, or mention checks on Australian farms, meatworks or labour hire. Globally it reported 6,839 third-party social audits in 86 countries in FY25, which found 414 sites rated critical and 40 critical violations involving forced labour indicators, but it discloses no remedy for workers. Kirkland Signature palm oil must be RSPO certified, with no supply chain model stated. Costco says it employs most of its workforce directly. Kirkland Signature seafood is graded in a separate Labour Lens record, which carries forced labour findings from 2014 and 2023.
What independent sources say
| Source | Result | Details |
|---|---|---|
| KnowTheChain | Listed | Costco scored 28 out of 100 and ranked 8th of 45 companies in the 2026 KnowTheChain Food & Beverage Benchmark, with particularly poor purchasing practices and remedy; it does not publish a first-tier supplier list. View |
| Australian Modern Slavery Register | Listed | Costco Wholesale Australia publishes a modern slavery statement; the statement for the year to 31 August 2025 was approved on 28 January 2026 and reports global audit results but nothing specific to its Australian suppliers. View |
| US Department of Labor goods lists | Listed | The US Department of Labor's 2024 list names palm fruit and palm oil from Indonesia and Malaysia as made with child and forced labour; Kirkland Signature products use palm oil. View |
Unconfirmed reports
Credible reports that haven't been confirmed by a regulator, completed investigation or the company. They're shown for your information and don't affect the grade.
- KnowTheChain's 2026 Food & Beverage Benchmark identified three allegations of forced labour in Costco's supply chains and found it disclosed no remedy outcomes for the workers affected (KnowTheChain, 2026). Source
Sources and actions
Sources 5
Show all 5 sources
- KnowTheChain 2026 Food & Beverage scorecard: Costco · search the archive · 28/100, ranked 8th of 45 (14th of 60 in 2023); three allegations of forced labour identified in its supply chains; no remedy outcomes disclosed; no first-tier supplier list
- List of Goods Produced by Child Labor or Forced Labor (US Department of Labor, 2024) · search the archive · 2024 list of goods produced with child or forced labour, including palm oil from Indonesia and Malaysia
- Win for Costco workers as new agreement approved (SDA) · search the archive · The SDA union negotiated an enterprise agreement for Costco's Australian staff that was approved
Published by Costco or its owner
- Costco Wholesale Australia FY25 Modern Slavery Statement · search the archive · Year to 31 August 2025, approved 28 January 2026; 15 Australian warehouses; more than 340,000 employees worldwide; 6,839 independent third-party audits in 86 countries prioritising Kirkland Signature and higher-risk suppliers
- Costco Wholesale Australia, Pty. Ltd. Modern Slavery Statement (Costco Australia) · search the archive · Costco Australia publishes its modern slavery statement
Company details
- Owned by
- Costco Wholesale Corporation
- Headquarters
- United States
- Employees
- About 340,000
- Last researched
- 2 November 2026
- Cite this page
- Labour Lens, "Is Costco ethical? Labour rating", https://www.labourlens.net/brand/costco, last researched 2 November 2026, accessed [date].
- Method
- Researched with AI assistance against published rules. How we check · What Lacks transparency means
Something missing or wrong?
Grades are opinions based on the evidence listed here. Send us evidence, or a right of reply if you represent Costco.