Climate Change Data

Environmental Metrics

ESG Focus Areas

• Partners (Employees)
• Diversity
• Coffee
• Customers
• Community and Environment
• Profitability

Environmental Achievements

• Increased percentage of post-consumer fiber (PCF) content in paper purchases above the 20% goal.
• Customers used commuter mugs more than 13.5 million times, keeping 586,800 pounds of waste from landfills.
• Implemented energy conservation projects in over 2,700 stores.

Social Achievements

• 73% partner engagement rating, placing Starbucks among the best employers globally.
• CUP Fund provided $247,000 in financial relief to 306 partners.
• Exceeded the $75 million goal for spending with diverse suppliers.
• Opened 17 Urban Coffee Opportunities (UCO) stores in diverse communities.
• Make Your Mark program inspired over 110,000 volunteer hours.

Governance Achievements

• Appointed Senator Bill Bradley, Olden Lee, and Mike Ullman to the board, improving board diversity and independence.
• Updated charters for board committees (Audit and Compliance, Compensation and Management Development, and Nominating and Corporate Governance).
• Enhanced whistle-blower procedures.

Climate Goals & Targets

Environmental Challenges

• Soaring U.S. healthcare costs.
• Community opposition to store expansion.
• Economic challenges facing coffee farmers.
• Environmental impacts of coffee growing.
• Poor social conditions in coffee communities.
• Increased energy usage in stores despite conservation efforts.
• Concerns about genetically modified ingredients and rBST milk.
• Concerns over alleged forced child labor in cocoa production.

Mitigation Strategies

• Commitment to designing affordable healthcare plans.
• Open dialogue and community outreach.
• Implementing a long-term, sustainable strategy for coffee sourcing (fair prices, favorable terms, investment in social programs, purchasing certified coffees).
• Starbucks Coffee Sourcing Guidelines.
• Launching an 'Energy Test Bed' to monitor energy usage and test new conservation initiatives.
• Providing nutrition information online.
• Offering organic milk and soy alternatives (rBST-free).
• Relaying concerns to cocoa suppliers and supporting the World Cocoa Foundation.

Supply Chain Management

Responsible Procurement

• Starbucks Coffee Sourcing Guidelines
• Starbucks Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Moss Adams, LLP

Awards & Recognition

• FORTUNE's '100 Best Companies to Work For'
• Workforce Optimas Award
• Northwest Minority Business Council’s Regional Corporation of the Year
• FORTUNE's 'Ten Most Admired Companies in America'
• Business Ethics magazine's '100 Best Corporate Citizens'

Environmental Metrics

ESG Focus Areas

• Coffee Purchasing Practices
• Environmental Impacts
• Workplace Practices
• Diversity
• Stakeholder Engagement

Environmental Achievements

• Purchased renewable energy representing 20% of total energy used in US and Canada company-operated stores.
• Introduced hot beverage paper cups containing 10% post-consumer paper fiber in US and Canada stores.

Social Achievements

• Increased wages for the majority of hourly store partners in the US and Canada.
• Contributed $18 million (1.7% of pre-tax earnings) to charitable causes.
• Partners and customers volunteered 320,000 hours in Make Your Mark events.

Governance Achievements

• Amended company bylaws to include majority voting for shareholder election of directors.

Climate Goals & Targets

Environmental Challenges

• Disagreement with the Ethiopian government over trademark rights for certain coffee designations.
• Rising healthcare costs.
• Decreased recycling rate in some stores due to factors beyond Starbucks' control.

Mitigation Strategies

• Signed a distribution, marketing, and licensing agreement with the Ethiopian government.
• Absorbed the majority of health care cost increases for partners.
• Planning to work more closely with landlords and building owners to improve recycling programs.

Supply Chain Management

Supplier Audits: 78 assessments conducted in fiscal 2007

Responsible Procurement

• C.A.F.E. Practices for coffee
• Cocoa Practices
• Supplier Social Responsibility (SSR) Program and Standards for Manufactured Goods and Services

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting coffee crop yields and quality

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: Moss Adams LLP

Sustainable Products & Innovation

• Hot beverage cups with 10% post-consumer recycled fiber

Awards & Recognition

• Fortune's 'Twenty Most Admired Companies in America'
• Fortune's '100 Best Companies to Work For'
• Business Ethics magazine's '100 Best Corporate Citizens'
• Corporate Responsibility Officer magazine's '100 Best Corporate Citizens'
• First magazine's International Award for Responsible Capitalism (Howard Schultz)
• Black Enterprise magazine's '40 Best Companies for Diversity'
• Ethisphere magazine's 'World's Most Ethical Companies'

Environmental Metrics

ESG Focus Areas

• ethical sourcing
• environmental stewardship
• community involvement

Environmental Achievements

• Electricity use decreased by 1.7% in company-owned stores.
• Water use decreased by 4.1% in company-owned stores.
• Served 4.4 million more beverages in reusable cups in 2009 than in 2008.
• Renewable energy purchases increased to the equivalent of 25% of the electricity used in company-owned stores.

Social Achievements

• Increased farmer loan commitments by $2 million.
• Engaged 20,868 young people in community activities through Youth Action Grants.
• Starbucks partners and customers contributed more than 186,000 hours of community service.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Extraordinary global economic conditions forced difficult business decisions.
• Decreased community service hours due to internal and external challenges.
• Wide variance in municipal recycling capabilities made efficient recycling difficult.
• Lack of commercially available LED lighting that met Starbucks' requirements (initially).

Mitigation Strategies

• Adopted considerable cost-saving initiatives.
• Invested in the customer experience to support long-term growth.
• Collaborated with external experts and organizations to find creative solutions.
• Developed a highly energy-efficient LED product with GE.
• Conducted a comprehensive water footprint audit to identify water-saving strategies.
• Implemented a new manually-operated hand-meter faucet to reduce water waste.
• Convened a cup summit with stakeholders to address recycling challenges.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• C.A.F.E. Practices verified coffee
• Fairtrade certified coffee
• Certified Organic coffee

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting coffee production

Transition Risks

• Not disclosed

Opportunities

• Linking coffee farmers to carbon markets

Reporting Standards

Frameworks Used: Null

Certifications: LEED®

Third-party Assurance: Moss Adams

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LED lighting

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Environmental Stewardship
• Community Involvement

Environmental Achievements

• Water consumption decreased by 17.7% since 2008.
• Electricity use decreased by 6.5% since 2008 (despite a 1.1% increase in 2012 due to weather).
• 69% of new company-owned stores achieved LEED certification.
• Purchased renewable energy equivalent to over 50% of electricity used in global company-owned stores.
• Introduced EarthSleeve™, saving nearly 100,000 trees annually.

Social Achievements

• More than 613,000 hours of community service contributed globally.
• Over 54,000 young people engaged in community activities.
• Opened three Community Stores, generating $245,000 for community revitalization programs.
• Supported various social development programs in coffee, tea, and cocoa growing regions (BLEND, CHAI, Guatemala Education Initiative).

Governance Achievements

• Integrated diversity and inclusion into core leadership competencies.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on coffee growing conditions and energy consumption.
• Varied recycling infrastructure across global markets.
• Operational challenges in implementing front-of-store recycling in some locations.
• Maintaining water conservation gains while improving beverage quality.

Mitigation Strategies

• Implementing energy-efficient technologies (energy management systems, hybrid water heaters).
• Developing material and infrastructure solutions for cup recycling in various markets.
• Working with NGOs, policymakers, and competitors to improve recycling infrastructure.
• Deploying new, more efficient water filtration systems.

Supply Chain Management

Supplier Audits: More than 500 factory assessments since 2006; 128 factories assessed in 2012, with 15 suppliers discontinued due to standards issues.

Responsible Procurement

• C.A.F.E. Practices program
• Fairtrade certification
• Social responsibility standards for suppliers
• Economic transparency clauses in contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting coffee growing conditions and energy consumption.

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Third-party Assurance: Moss Adams LLP

Sustainable Products & Innovation

• EarthSleeve™

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Environmental Stewardship
• Community Involvement

Environmental Achievements

• Reduced water use by 21.1% since 2008
• Reduced electricity use by 7.1% since 2008
• Purchased renewable energy equivalent to 54.9% of electricity used in global company-operated stores

Social Achievements

• Mobilized partners and customers to contribute over 630,000 hours of community service globally
• Engaged more than 50,000 young people in community activities
• Awarded nearly 100 Starbucks Youth Leadership Grants to local organizations in 16 countries

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenges in reaching energy consumption reduction goals due to increased food transactions and oven use
• Challenges in reaching 100% renewable energy goal due to international growth
• Challenges in implementing uniform recycling strategies due to varying infrastructure and policies across global locations
• Challenges in reaching 5% reusable cup goal

Mitigation Strategies

• Exploring new approaches to address energy demands
• Working to find more locally relevant energy sources
• Working with industry partners to improve recycling infrastructure and solutions
• Exploring new ways to encourage customers to bring their own cups

Supply Chain Management

Supplier Audits: 86 factories assessed in 2013

Responsible Procurement

• C.A.F.E. Practices
• Fairtrade
• Ethical Tea Partnership (ETP)
• Cocoa Practices program

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impact on coffee supplies

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED

Third-party Assurance: Moss Adams LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EarthSleeve™

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Ethical Sourcing
• Environment
• Community

Environmental Achievements

• Opened 500th LEED®-certified store (more than any other retailer)
• Reduced water use in company-operated stores by more than 23% over baseline levels
• Purchased renewable energy equivalent to more than 59% of the electricity used in global company-operated stores

Social Achievements

• Introduced the Starbucks College Achievement Plan
• Hired nearly 2,000 veterans and military spouses
• Awarded more than 100 grants through the Starbucks Youth Leadership program

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unexpected challenges with some ambitious environmental goals
• Technical challenges in international markets with LEED certification
• Barriers to recycling in stores due to municipal limitations and landlord restrictions
• Gradual improvements in customer use of reusable cups
• Energy performance only improved by 4.6% due to expanded food platform offsetting conservation gains

Mitigation Strategies

• Working with the U.S. Green Building Council to increase LEED adoption internationally
• Working across the industry to find innovative ways to reduce landfill waste
• Continuing to look for ways to encourage customer use of reusable cups
• Installing new Energy Management Systems in approximately 4,000 stores
• Exploring ways to reduce energy use

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• C.A.F.E. Practices
• Fairtrade
• Other externally audited systems

Climate-Related Risks & Opportunities

Physical Risks

• Climate change risks to coffee farmers

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED

Third-party Assurance: Moss Adams LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Coffee
• Greener Retail
• Creating Opportunities
• Strengthening Communities

Environmental Achievements

• Built more than 1,200 LEED® certified stores.
• Purchased the equivalent of 100 percent of global company-operated stores' electricity consumption using Renewable Energy Credits (RECs).

Social Achievements

• Exceeded the goal of hiring 100,000 Opportunity Youth two years ahead of schedule.
• Met the goal of hiring 10,000 veterans and military spouses 18 months early and expanded the goal to 25,000 by 2025.
• Donated over 1 million meals through the FoodShare program.

Governance Achievements

• Issued its first U.S. Corporate Sustainability Bond for $500 million to enhance sustainability programs.

Climate Goals & Targets

Environmental Challenges

• Productivity decline in Oaxaca, Mexico due to climate change, lack of market access, and other challenges.
• Need to increase recycling infrastructure for cups.
• Addressing hunger and food insecurity.

Mitigation Strategies

• Investing in coffee communities, sharing technical coffee knowledge, and innovating with new approaches.
• Developing a store verification program to drive innovation, sustainability, and efficiencies throughout the store portfolio.
• Partnering with Feeding America to rescue 100% of food available to donate from all U.S. company-owned stores by 2020.

Supply Chain Management

Responsible Procurement

• Ethically sourced coffee (99% in 2016), tea, and cocoa.

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacting coffee production

Environmental Metrics

ESG Focus Areas

• Sustainable Coffee
• Greener Retail
• Creating Opportunities
• Strengthening Communities

Environmental Achievements

• Achieved 100 percent of the electricity powering global company-operated stores from renewable sources in 2015.
• Built more than 1,500 LEED® certified stores in 20 countries.
• Donated more than 21 million coffee trees to farmers since 2015.

Social Achievements

• Reached 100 percent pay equity for partners of all genders and races performing similar work across the United States.
• Opened their tenth Community store to help create local jobs and provide in-store job-skills training in underserved communities.
• Hired 12,876 veterans and military spouses by March 2017 (exceeding their 2018 goal).

Governance Achievements

• Women make up one-third of the board of directors.

Climate Goals & Targets

Environmental Challenges

• The arrest of two African American men waiting for a friend at a Philadelphia Starbucks was antithetical to their values.

Mitigation Strategies

• Closed more than 8,000 U.S. stores to address the incident and strengthen their culture of belonging.

Supply Chain Management

Responsible Procurement

• C.A.F.E. Practices (Coffee and Farmer Equity Practices)
• Ethical Tea Partnership
• Work with World Cocoa Foundation

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Creating Meaningful Opportunities
• Strengthening Communities

Environmental Achievements

• More than 99% of coffee ethically sourced under C.A.F.E. Practices
• Trained nearly 88,000 farmers
• Distributed 40 million climate-resilient coffee trees since 2015
• 99% ethically sourced tea
• 2.8% reusability rate in company-operated stores in the U.S., Canada, Japan, and EMEA (saving more than 105 million disposable cups)
• Continued rollout of strawless lids and sustainable material straws (anticipated global elimination of single-use plastic straws by end of 2020)
• 10% post-consumer fiber (PCF) in hot cups
• Increased recycling acceptance of hot cups from 24% to 25% in the U.S. and Canada
• Built more than 1,600 LEED®-certified stores
• 72% of Starbucks operations powered by renewables

Social Achievements

• Published a Civil Rights Assessment
• More than 4,500 partners earned first-time bachelor’s degrees through Starbucks College Achievement Plan
• New mental health initiative and family support benefits announced for U.S. and Canadian partners
• 100% global gender pay equity in U.S. and company-owned markets
• ~175,000 partners participated in anti-bias training
• Spent $7.5B with diverse suppliers since 2000
• 61,000+ Opportunity Youth hired
• ~28,000 veterans and military spouses hired
• ~2,100 refugees hired

Governance Achievements

• Hiring of first global chief officer of sustainability, inclusion and diversity, and ethics and compliance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and communities
• Last 1% of coffee sourcing for ethical sourcing
• Regulatory and manufacturing challenges in rolling out sustainable straws due to COVID-19
• Logistical challenges of ongoing perishable food delivery in FoodShare program
• Decrease in renewable energy share due to transition away from company-owned renewable energy-powered markets and increase in stores in markets still building a path toward renewable energy

Mitigation Strategies

• $10 million emergency relief fund for partners
• Temporary benefits for partners in the U.S. and Canada
• Food and coffee donations to hospitals and frontline workers in Asia
• Continued commitment to shift to more reusable packaging and fully recyclable and compostable packaging
• Investments in solar and wind farms
• Continued work to buy more renewable energy

Supply Chain Management

Responsible Procurement

• Supplier Diversity and Inclusion program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Third-party Assurance: Moss Adams LLP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Security
• Waste Reduction
• Biodiversity

Environmental Achievements

• Reduced carbon emissions (progress towards 50% reduction by 2030 from a 2019 baseline)
• Reduced waste sent to landfills (progress towards 50% reduction by 2030 from a 2019 baseline)
• Conserved or replenished water (progress towards 50% reduction by 2030 from a 2019 baseline)
• Distributed over 9.5 million climate-tolerant coffee trees globally
• Achieved 100% renewable energy for North America company-operated facilities
• 72% renewable energy powered company-operated facilities globally
• 3,508 Starbucks stores were certified Greener Stores

Social Achievements

• Launched the ‘GOOD GOOD’ Movement in China to promote sustainable lifestyles
• Empowered 250,000 women and girls in coffee and tea communities
• Provided nearly $2 million to support water replenishment and WASH projects
• Launched a new Starbucks Partner Waste and Recycling App

Governance Achievements

• Board-level oversight of climate-related and water-related issues
• Executive compensation linked to ESG performance (10% of bonus tied to planet-positive results and 10% to inclusive environment)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events
• Increased cost of high-quality arabica coffee beans due to climate change
• Challenges in sourcing renewable energy in China and Japan
• Challenges in achieving waste reduction goals due to COVID-19
• Limited availability of recyclable and compostable hot cup solutions

Mitigation Strategies

• Investing in regenerative agriculture, reforestation, and water replenishment
• Developing alternative sourcing strategies
• Investing in renewable energy projects
• Implementing waste reduction initiatives (e.g., reusable cups, strawless lids)
• Participating in the NextGen Cup Challenge to develop sustainable packaging

Supply Chain Management

Responsible Procurement

• C.A.F.E. Practices
• Zero deforestation requirement
• Sustainable Dairy Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of plant-based menu options
• Increased demand for sustainable products

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Greenhouse Gas Protocol, GRI, RE100

Certifications: LEED

Third-party Assurance: SCS Global Services

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Starbucks initiatives contribute to these goals through water conservation, renewable energy use, sustainable packaging, emissions reductions, and biodiversity protection.

Sustainable Products & Innovation

• Greener Stores
• Sustainable packaging
• Plant-based menu options

Awards & Recognition

• EPA Green Power Leadership Award