Costco Wholesale Corp: Establish a Due Diligence Protocol to Monitor Illegal Deforestation in its Avocado Supply Chains

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WHEREAS:  Public reporting suggests that Costco may source avocados from illegally deforested land,[1] harming ecosystem function and local communities and posing reputational and regulatory risks to Costco.

Mexico accounts for nearly 90 percent of avocado shipments to the United States.[2] It is estimated that, for the past decade, more than ten football fields a day of Mexican forests have been cleared for avocado orchards.[3]

Over the past two decades, virtually all avocado-related deforestation in the states of Michoacán and Jalisco – the largest sources of avocados for the U.S. market – has violated Mexican federal law, which prohibits conversion of forested areas to agricultural production without government authorization. The additional crime of intentionally setting forest fires frequently facilitates deforestation in this region.[4]

This burning and deforestation releases greenhouse gases, reduces carbon storage, increases floods and landslides, and undercuts biodiversity and the replenishment of aquifers.[5] Some of this deforestation is occurring within the Monarch Butterfly Biosphere Reserve, further imperiling an endangered species.[6]

Avocado production is also water intensive. Mexico’s main avocado-growing regions are currently in a severe drought,[7] and much of the water used for avocado plantations is obtained illegally.[8] The combination of illegally diverting streams, digging wells for irrigation, and replacing native forests with plantations is depleting water supplies for communities and making forests and farms more vulnerable to fires and disease.

The environmental damage from avocado-related deforestation has prompted lawsuits against major avocado importers over misleading sustainability claims.[9] Additionally, Mexican avocado imports into the U.S. have been suspended three times since 2020 due to security concerns related to criminal activity in avocado production.[10] Ensuring avocados are not associated with illegal activities can help reduce supply disruptions.

Costco expects its vendors to comply with all applicable environmental laws and regulations.[11] However, Mexican government records indicate that orchards containing illegally deforested land are supplying avocados to Costco,[12] calling into question the sufficiency of Costco’s due diligence protocols for its avocado vendors.

Importantly, a government-sanctioned tool to help retailers and suppliers identify orchards on illegally deforested land is available and is already being successfully used by major avocado importers including Calavo, Mission Produce, and West Pak.[13] Adequate due diligence of its supply chain standards will help Costco address the likelihood of supply chain disruption and lawsuits, prevent greenwashing accusations, and avoid reputational risk, while protecting human rights and critical habitat.

BE IT RESOLVED:  Shareholders request that Costco assess and report on the effectiveness of its due diligence policies in ensuring vendor compliance with federal, state, and local laws, such as illegal deforestation from avocado supply chains, and Costco’s Standards. 

SUPPORTING STATEMENT:  Proponents recommend, at management discretion, that the report identify actions Costco can take to identify, avoid, and/or reduce the future sale of avocados from illegally deforested lands.

Resolution Details

Company: Costco Wholesale Corp

Lead Filers: As You Sow

Year: 2026

Filing Date: 
August 2025

Initiative(s): Deforestation

Status: Resolution Withdrawn, Agreement Reached

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BiodiversityAs You Sowdeforestation, Deforestation, avocado, avocados, illegal, land, Costco, Costco Wholesale