Csr Report of Starbucks

8/12/2019 Csr Report of Starbucks

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STARBUCKS GLOBAL RESPONSIBILITY REPORT

Each Starbucks is part of the fabric of the neighborhood it serves. Although we are a globalcompany with stores across the globe, each interaction is local. Starbucks is a gathering place, aplace to connect, a barista of fering a cup of coffee with an outstretched hand.

Since our first store in 1971, we have felt a responsibility to makea positive impact one person, one cuand one neighborhoodat a time. As we have grown to now more than 1,!!!stores in over "! countriewe recogni#e that commitment to corporate citi#enship is also a business imperative. $e can use ouscale for good, and cataly#e changeacross entire industriesso that Starbucksand everyone we touch caendure and thrive.

%n a global level, we are trying to be innovative in how we thinkabout communities. $e go beyond

the impact of a single company, to energi#e and activateour employees & who we callpartners& along

with our customers, suppliers and nonprofitpartners. %ur annual 'lobal (onth of Service is a great

e)ample, with more than *+!,!!! hours of service and *,1!! proects completed in April *!1*, and

with plans to e)pand in new directions in *!1+.

$e are seeing the impacts of climate change on our planet and are working to minimi#e our ow

environmental footprint. $e are also helping our farmers run their businesses in an environmentall

mindful way, making adustments to ensure the viability of their businesses despite shifting growin

conditions.

-n *!1*, we demonstrated the power tha t happenswhen ourpartners and a community come together

$e opened our third community store in ouston, /e)as, and helpeda city take hold of its own destiny

-n the words of one neighbor, 0ou have changedour neighborhood forever. -t2sbecause people see thi

going on and now they will be more likely to take action themselves.3

$e know global change ultimately resides in the power of each individual. 4nfortunately, many people hav

disengaged from their communities. Although they may desire change, and they may want to make a difference

they are often unsure of how and where to start. $e are working to engage and activate these individuals wit

our outh 5eadership 'rants program. %ur effort now reaches more than 6!,!!! young people each year

creating innovative and positive solutions to local needs while empowering young people.

At our armer Support 8enters, we work oneonone with farmers to help them manage their businesses mor

effectively, improve the :uality and productivity of their crops, and provide social services to their workers. ;

making these investments in human capital, we create ripples of change in thousands of farming communities.

%ur annual 'lobal


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more than reporting on past progress, it2s an opportunity to be more intentional and focused about what we ca

do in the future. $hile there are challenges to operating such a comple), e)panding global business as ours, w

will continue to balance local relevance with our global reach. ou have our commitment that we will continu

to push ourselves in new ways.


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Ethical Sourcing

$e have taken a holistic approach to ethically sourcing our products & from thecoffee we serve ou

customers to the green aprons worn by our baristas. $e strive to cultivate lasting relationships with th

people who grow ourproducts and createour manufactured goods as we work together to produc

high:uality, ethically sourced products.

%ur approach includes responsible purchasing practices, farmer support efforts, and sociaresponsibility standards for suppliers, and environmental programs. $e know that our supply chain i

vast, and we have an opportunity to use its scale to make positive changesindustrywide.

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-ncludes green coffee purchases for all Starbucksbrands.

B*!11 results include 8.A..E. =ractices only.

Coffee

$e are committed to buying and serving high:uality coffee that is responsibly grown and ethically traded. $e

honor this commitment through our responsible coffee purchasing practices, farmer support centers, loan

programs and forest conservation efforts. $hen we buy coffee this way, we believe that it helps foster a bette

future for farmers and helps mitigate the impacts of climate change for the planet

/he cornerstone of our approach is 8offee and armer E:uity ?8.A..E.@ =ractices, our comprehensive

coffeebuyingprogram that ensurescoffee :uality whilepromoting social, economic and environmenta

standards. 8.A..E. =ractices, which we developed in collaboration with 8onservation -nternationa

?8-@ a decade ago, has created significant social and economicimpacts for more than one million workers

and environmentalimprovements on the thousands ofparticipating farms.

arms and mills are evaluated using a comprehensive scorecard of more than *!! indicatorsby third

party verification organi#ations, which are overseen by S8S 'lobal Services.-n *!1*, 9!> of our coffee

was 8.A..E. =ractices verified.

=urchasing thirdparty certified or verified coffees not only meets our customers2 e)pectations, but can

also help protect the environment and the livelihood of farmers in coffeegrowing regions. $e hav

offered airtrade coffee since *!!!, and remain one of the largest purchasers of airtrade certified

coffee in the world. -n *!1*, . million pounds ?.1 >@ of our coffee purchases were airtrad

certified. $e alsopurchased .7 millionpounds ?1.">@ of certified organiccoffee in *!1*.

-n *!1*, 9+ > of our coffee was ethically sourced through 8.A..E. =ractices, airtrade andCor othe

e)ternally verified or certified programs , with some coffees receiving multiple verifications o

certifications. -t is our goal that by *!16,1!! > of our coffee will be sourced this way.

Another important component of our approach is a green coffee pricing model that aims to pay th

prices premium:uality commands, while fosteringprice stability and mutually beneficial relationship

with suppliers. Starbucks sourced 66 million pounds of premium :uality green ?unroasted@ coffe

from *9 countries in *!1*, and paid anaverage price of D*.6" per pound. -n *!1*, 9> of our contract

included an economic transparency clause.
http://www.conservation.org/campaigns/starbucks/Pages/default.aspxhttp://www.conservation.org/campaigns/starbucks/Pages/default.aspxhttp://www.conservation.org/campaigns/starbucks/Pages/default.aspxhttp://www.conservation.org/campaigns/starbucks/Pages/default.aspxhttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.conservation.org/campaigns/starbucks/Pages/default.aspxhttp://www.conservation.org/campaigns/starbucks/Pages/default.aspx


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Tea-n a similar way we approach responsible coffee sourcing, we are committed to a longterm strategy o

ethical teasourcing, which includes helping support farmers and their communities throughout our te

supply chain. $e havebeen working with the Ethical / ea =artnership ?E/=@ since *!!6 to collaborate

with others in the tea industry, and tomake sure that our tea isproduced in a socially responsible way. -n

*!1*, we strategically sourced from estates that are a part of the E/=program and subect to third

party independent audit on the social and environmentalcriteria outlined in the E/= 'lobal Standard.

%ur work with E/= is complementedby our support of the 8A- ?8ommunity ealth and Advancemen

-nitiative@proect with (ercy 8orps. -n *!1* we celebrated the 1!year anniversary of 8A-. Sinc

*!!+ 8A- has directly impacted 76,!!! people and their families in more than *!! farming

communities in -ndia and 'uatemala.

Cocoa%ur approach to buying cocoa is also based on a commitment to ensuring a longterm supply of high

:uality, ethically sourced cocoa while contributing positively to the environment and to cocoafarming

communities. %ur 8ocoa =ractices program seeks to verify the supply chain for the cocoa beans used

in our beverages, with inspections performed by independent verifiers overseen by S8S 'loba

Services.

Store Merchandise$e2re also committed to social responsibility standards for the merchandise, furniture and other item

found in our stores. $e2ve set st r ong standa r ds for our suppliers and offer them assistance when

corrections need to be made to their business practices. Adherence to those standards informs ou

sourcing decisions and ensures we are working with suppliers who share our commitment to ethica

sourcing. %ur buyers work directly with suppliers, negotiating contracts for the products we need in ou

operations or sell to our customers.

-n *!1* we assessed 1* factories and found that +" of them failed our #erotolerance standards. Even

though our approach is to work with suppliers to correct the issues, there are times when we hal

business due to the natureof the issues and until ade:uate resolution takes place. $hile we were able to

implement improvement plans with almost half of these factories, we discontinued working with 16factories as suppliers for standards issues. Since starting the program in *!!", we have engagedin more

than 6!! factory assessments and continueto work with more than 7! factories on programs to improve

standards.
http://www.ethicalteapartnership.org/http://www.ethicalteapartnership.org/http://www.ethicalteapartnership.org/http://www.mercycorps.org/indiahttp://www.mercycorps.org/indiahttp://www.mercycorps.org/indiahttp://www.mercycorps.org/indiahttp://starbucks.com/responsibility/sourcing/cocoahttp://starbucks.com/responsibility/sourcing/cocoahttp://starbucks.com/responsibility/sourcing/cocoahttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://starbucks.com/responsibility/sourcing/store-productshttp://starbucks.com/responsibility/sourcing/store-productshttp://starbucks.com/responsibility/sourcing/store-productshttp://www.ethicalteapartnership.org/http://www.mercycorps.org/indiahttp://www.mercycorps.org/indiahttp://starbucks.com/responsibility/sourcing/cocoahttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://www.scsglobalservices.com/starbucks-cafe-practiceshttp://starbucks.com/responsibility/sourcing/store-products


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"

$e are continuing to collaborate with others in our industry to address ethical sourcingbest practices in

our shared supply bases. Starbucks is a member of the 'lobal Social 8ompliance =rogram, abusiness

driven effort to promote the continuous improvement of environmental and working conditions o

global supply chains.

Farer S!""ort$e know our success as a company is linked to the success of the thousands of farmers who grow oucoffee.

Starting in *!! with our first farmer support center in 8osta


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7

/he fund represents a uni:ue collaboration between a social investment firm and two global nonprofit

that focus on helping rural communities in developing countries./he fund launched in 5atin America in

*!1* with farmers in multiple coffeegrowing countries. ;y investing inprograms that provideaccess t

credit, we2re helping farmers manage risk and strengthen their businesses. 5ooking forward, we ar

e)ploring innovative relationships to help us better leverage the loans in concert with our technica

support, social development investments and coffee purchases. /he fund will also e)pand into the Afric

andAsia=acific farming regions.


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Red!cin$ O!r En%ironenta& I"act

%ur comprehensive approach to reducing our environmental impact mea ns looking at all aspects o

our business, how they intersect, and how we can integrate new solutions to create meaningful and

sustainedchange.

;eyond the proactive efforts within our control, the realities of climate changeare a growing challengeand we felt the impact during *!1* & the hottest year on record. rom co f feeg r owing conditions in

8osta


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Greener Stores$e know that more than !> of our direct and indirect g r eenhouse gas emissions come from the energyused to power our stores, offices and roasting plants. $e are intently focused on improving thenvironmental performance of our facilities and more than 1,!!! stores with green store design anenergy and water conservation strategies.

'%A5 = of our stores to a sustainabl

building standard.
http://starbucks.com/responsibility/environment/climate-changehttp://starbucks.com/responsibility/environment/climate-changehttp://starbucks.com/responsibility/environment/climate-changehttp://starbucks.com/responsibility/environment/climate-changehttp://starbucks.com/responsibility/environment/climate-changehttp://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://www.usgbc.org/http://starbucks.com/responsibility/environment/climate-changehttp://www.usgbc.org/


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Gevelop

comprehensive

recycling solutions for

our paper and plasticcups by *!1*

$hile weproved therecyclabilityof our cups in 4.S.,

8anada, 4 and 'ermany, and

continueto e)pand recycling in

those countries,we are stillworking toward materialsandCorinfrastructuresolutionsfor our

remainingcompany9owned

markets.

Gesign

8ollection

INPROGRESS

-nfrastructure

Findin$ C!" Rec(c&in$ So&!tions;ecause recycling infrastructure varies widely in countries around the world & even from one city tanother & a onesi#efitsall approach does not work for a global business with stores in more than "countries.

$e have proven that our used cups can be accepted in a variety of recycling systems, and we are bringing this to scale in the 4nited States, 8anada, the 4niteingdom and 'ermany. $e are developing material and infrastructure solutions in additional markets, working toward our goal to provide all customers access to cu

recycling by *!16.

;y working with nongovernmental organi#ations, policy makers, competitors and others, we can tacklcommon challenges. As a member of the Pa"er Reco%er( A&&iance and the =lastics

*!16

=ercent of store locations

with frontofstore recycling

1>

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*>

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Rec(c&in$ in O!r Stores

Although most of our customers take their beverages to go, providing frontofstore recycling is a

importantpart of our effort to develop comprehensive recycling solutions.

'%A5 = of their waste from

landfills with this method, and we are testing ways to increase this percentage. ;y leveraging th

solutions from our different markets around the world, we can help buildcapabilities in markets newer t

recycling.


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;ackofstore recycling is also a priority, as most of our instore waste is generated behind the counter. -

*!1* 7> of the +,17 stores in the 4nited Statesand 8anada where Starbucksis responsible forprovidin

waste removal services recycled cardboard bo)es and other items. Among our remaining 4.S. an

8anada retail locations, the maority were limited by operational impasses, such as a lack of store spac

for recycling carts or the unavailability of commercial recycling services. $e are working hard to resolv

thesebarriers.

Red!cin$ )aste *ith Re!sa+&e C!"s of the beverages made in our stores in tumblers and mugs broughtin by our customers.

-n *!1* customers brought their own tumblers into our stores +6. million times, saving more than 1.

millionpounds ofpaper from landfills. Although customers brought in their personal mugs 1." millio

more times in *!1* over the previous year, the percentage of customers choosing reusable mug

remainedflat from last year. -nprevious years, we calculated the percentage of customer tumbler us

over total transactions. -n collecting data from our stores around the world and analy#ing custome

behavior, we determined that abetter measurement of this goal is to calculate the percentage of time

a personal cupCtumbler is used over our total beverage sales, which is a more precise measure of th

total beverages we sell.

$e2ll continue to find innovative ways to engage customers to work with us to reduce wasteL includinlaunching aD1 reusable cup in the 4.S. and 8anada in *!1+ with plans to e)pand to other markets. $challenge ourselves, ourpartners in our support centers and our stores, to use reusable cups and remaicommittedto e)ploring new ways to reduce our cup waste.


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'%A5 = of aparticipating farmer2s income.

-n Sumatra, -ndonesia, we are continually e)ploringthe feasibility of a forest carbonmarket programwit

local and regional government organi#ations to lay the groundwork for the future. $e are investing in

the development of the Aceh /engah 8offee 8limate 8hange Adaption plan, building the first of si)

nurseries in *!1*, organi#ing climate mitigation and adaption trainings for farmers, and establishing

plans to plant +!!,!!! treesby *!1+.

$e e)panded the partnership to the (inas 'eris region in ;ra#il2s Atlantic orest for the first time in

*!1*, and distributed *!!,!!! native tree seedlings to farmers. $e are helping farmers gain access t

e)isting governmentprograms that providecash incentives for forest preservationand restoration. $e ar

also conducting research to better understand opportunities for improved productivity, increased

income and resilience to climate change.

/esting these approaches in different regions helps us refine our strategies so they can be applied t

other coffee growing communities and replicatedby other government and industry partners.


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Co!nit(

%ur communities are not ust where we have stores. /hey are every place ou r business touches, from

the backyards of our customers, to the farms whereour coffee is grown. $e have a responsibility to

make our communities stronger& using the scale of our business forpositive change.

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As we engage in communities in the present, we are also planning for the future. $e2re helping

develop the ne)t generation of e)traordinary leaders through our outh Action 'rants. /hes

investments help young people learn the skills re:uired for our changing global economy, such a

business savvy, social conscience and collaborative communication.

$hen we created the 1outh Action program in *!!, we set an ambitious goal of engaging 6!,!!

young people by*!16. or each of the past three years, we have e)ceeded this goal. /hese youth leader

in turn mobili#ed more than 1. million hours of community service in *!1* and created ripples o

change in communities around the world. As we look to the future with our 1outh5eadership grants

we hope to help the ne)t generation of leaders to build successful and socially responsible businesse

and nonprofit organi#ations.

Co!nit( Stores

$e are e)ploring new ways we can be more directly involved with the communities we serve. %u8ommunity Stores are helping create engaged citi#ens through an innovative business model anpartnerships. 8ommunity Stores serve as the hub of our community service and training programs thapromoteleadership and ob and lifeskill development.

Guring fiscal *!1* we opened our first two 8ommunity Stores in arlem, Hew 1ork, and the 8renshawcommunity of5os Angeles. $e opened a third store in ouston, /e)as, in early fiscal *!1+.

-n the first 1* months of the 8ommunity Store program, this effort generated D*6,!!! for holisti

community revitali#ation programsfocused on education, safety, housing, health and employment. A

we celebrate the first year of 8ommunity Stores, we are pleased with the personal and financia

impacts they have made in these neighborhoods. /hese storeshave shed light on the role our store

can play in creating community connection.

Farin$ Co!nities

%ur commitment to communities e)tends beyond our stores to include the regions that supply ou

coffee, tea andcocoa. Starbucks invests inprograms designed to strengthen local economic and socia

development. $e are working collaboratively with nongovernmental organi#ations that hav

e)perience and e)pertise in working with farming communities.

-n addition to social investments, we also support communities through farmer loans and ethicasourcing programs with 8onservation -nternational and airtrade, among others.

-n -ndonesia2s Aceh province, Starbucks has teamed with Save the 8hildren to improve children2s health

and education in coffeegrowing communities through ;5EHG ?;etter 5iving, Education,Hutrition, and

Gevelopment@.
http://www.starbucks.com/responsibility/community/youth-actionhttp://www.starbucks.com/responsibility/community/youth-actionhttp://www.starbucks.com/responsibility/community/youth-actionhttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://savethechildren.org/http://www.starbucks.com/responsibility/community/youth-actionhttp://starbucks.com/responsibility/community/community-storeshttp://starbucks.com/responsibility/sourcing/farmer-supporthttp://starbucks.com/responsibility/sourcinghttp://starbucks.com/responsibility/sourcinghttp://savethechildren.org/


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'i%ersit( and Inc&!sionAs our company has grown to reach our neighborhoods and communitiesaround the world, diversity and

inclusionhave become increasingly important to success. $e understand that meetingthe needs of th

global community re:uires creativity and innovation. $e intend to leverage the diversity of thought tha

our partners, communities and suppliersbring to us.

At Starbucks we strive to create a culture that values and respectsdiversity and inclusion. $e e)pect to b

the leader in diversity and inclusion from our partners in the field to our senior leadership teams. /

ensure that our goal is

a reality, starting in *!1* we have integrated diversity and inclusion into the core of our leadership

competencies. $e e)pect that all leaders within Starbucks practice behaviors that demonstrateinclusion

/he new leadership competency reads that, as leaders, we will 0reach out to leverage diversepoints o

view, talents and capabilities. $ork and think across teams, functions and businessesL across markets

channels and organi#ationsL across cultures and communitiesL across physical and digital spaces.3

/o strengthen these efforts, we also collaborate with diverse p r ofessional o r gani#ations, nonp r ofi

o rgani#ations,businesses,civic leaders and individuals who share our values.
http://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationshipshttp://starbucks.com/responsibility/learn-more/relationships


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A+o!t the /01/ Star+!c,sRes"onsi+i&it(Re"ort

Sco"e

/he report for fiscal *!1* focuses on our performance against the goals we set in *!! in three areas

ethical sourcing, environmental stewardship and community involvement. $e2ve also included helpfu

links to information and resources publicly available on Starbucks.com regarding our financia

corporate governance, workplace and diversitypolicies and performance.

-n developing this report, we2ve covered topics and issues that are important to Starbucks and ou

stakeholders, based on feedback from sources like (yStarbucks-dea, customer feedback via ou

8ustomer Service center and industry analysis conducted by Sustainability and Edelman, along wit

direct conversations with the many o r gani#ations we work with. $e share information about thos

topics in the body of the report or direct readersto other resources.

%ur report has alsobeen guidedby the 'lobal


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Bo!ndaries

%ur 'lobal


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Inforation Inte$rit(

Starbucks management is responsible for the preparation and integrity of the information being reported fofiscal *!1*. /hrough a system of internal controls, including a comprehensive verification process involvininternal subect matter e)perts, we believe this information fairly represents our global responsibility activitieand performance results for the fiscal year *!1*. E)ternal verification is provided by (oss Adams 55=.

Csr Report of Starbucks

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