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GLOBALSOCIALIMPACTREPORTSTARBUCKS 2018
THE PURSUITOF DOINGGOODINTRODUCTIONREFLECTING ON OUR PROGRESS IN 2018From the first time Starbucks openedits doors in Seattle’s Pike Place Marketin 1971, we have been dedicated toexceptional coffee and customerservice – and something more.It started with our early travels tothe places where our coffee is grown,understanding that our future isinextricably tied to the futures of farmersand their families. We nurtured personalrelationships and built a global networkof support to create a new way toproduce coffee: one that is sustainable,transparent and good for people and theplanet. As the threats of climate changehave grown, we have been workingto help coffee farms adapt and findinnovative solutions in how we buildand operate our stores, while reducingthe environmental impact of our cups,straws and lids.Our stores are often the heart of aneighborhood, and we strive to makeeach one a welcoming and inclusiveThird Place. As we have grown, so toohas our opportunity to make a positiveimpact, from alleviating hunger throughour food donation program to makinginvestments in local partnerships andcoffee- and tea-origin communitiesthrough The Starbucks Foundation.Stitching all these efforts together isa common thread – a green thread –one that is woven in the fabric of ourcompany by the more than 300,000men and women who proudly wear thegreen apron. We are dedicated tomaking our partners proud, providingpay equity and investing in their success.And we are working to hire veterans andmilitary spouses, refugees, OpportunityYouth and those formerly incarcerated,and helping them build their futuresonce they are with us.As it has been from the beginning,our purpose goes far beyond profit.We believe in the pursuit of doing good.This report serves as a transparentacknowledgement of our efforts: wherewe have achieved and where we havefallen short, and the work still to come.As we look ahead to our centennialanniversary 50 years from now, wehope to build an enduring company bystaying true to Our Mission and Values,embracing new ideas and innovatingin ways that are meaningful to ourcustomers and inspiring to our partners.We hope you will continue to join us onthis journey.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 2
IMPACTSUMMARYLEADING IN SUSTAINABILITYRESPONSIBLE COFFEEOur vision is simple: to producesustainable coffee, served sustainably.For more than two decades, Starbuckshas partnered with ConservationInternational on C.A.F.E. Practices,our ethical coffee sourcing program.We now source 99 percent of ourcoffee this way, promoting quality,economic transparency and social andenvironmental impact with a vision tomake coffee the world’s first sustainableagricultural product in the world.Climate change represents significantimmediate and long-term risks tocoffee farmers around the world, andwe are taking steps to help ensure thesupply of high-quality coffee for futuregenerations. Core to ensuring the longterm sustainability of coffee is alsoensuring the economic profitability forfarmers. We are investing in innovationto offer farmers new climate-resilientcoffee tree varietals and support coffeefarming communities through our GlobalFarmer Fund to make sure farmers haveaccess to low-interest financing thatwill help them reinvest in their farms.We continue to share what we havelearned with others through agronomytraining for farmers, whether they sellto us or not. We are also supportingwomen and families in coffee- andtea-growing communities throughStarbucks Foundation Origin Grantsthat are focused on strengthening theirleadership skills and income-generatingactivities to diversify their income.We’re also working toward a goal of100 percent ethically sourced tea andcocoa for beverages by 2020. We areinvesting in sustainability, issuing ourthird sustainability bond in May 2019 forinvestors to participate in socially andenvironmentally focused projects andleveraging new technology to bringreal-time digital traceability to ourcoffee supply chain.GREENER CUPS ANDPAC K AG I N GThere is perhaps nothing morerecognizable for the Starbucks brandthan our cup. Yet our cups and packagingremain one of our biggest environmentalchallenges. We are looking for new waysto promote reusable cups and bettermanage the lifecycles of disposableones. We are testing a variety of greenercups that are both recyclable andcompostable in select cities throughthe NextGen Cup Challenge and arelaunching a lightweight strawless lidwith a hope to eliminate 1 billionsingle-use plastic straws annually. Overthe past decade we have struggled withour goal to significantly increase theuse of reusable cups in our stores. Weare continuing to test new ideas andapproaches to the challenge. In theUK we conducted a trial of a 5-pencedisposable cup fee and a 25-pencereusable cup incentive, which increasedreusable cup usage for hot drinks soldin stores nationwide from 2.2 to 5.8percent.“Starbucks is invested indeveloping solutions that seekto improve the sustainabilityof their products. Whencompanies begin to rethinktheir plastic footprint,innovation, research andmeasurement are the keyelements needed to set themon a path toward continuousimprovement,” said Erin Simon,Director of Sustainability R&Dat the World Wildlife Fund.GREENER STORESWe know that designing and buildinggreen stores is not only environmentallyresponsible, it is good business. Wealready operate more than 1,600LEED-certified stores around the world,making us the world’s largest greenretailer. We are building on that legacyby developing a new Greener Storeframework for 10,000 stores globallyby 2025, which could save 50 million inutilities costs over the next 10 years.And we’re empowering our partnersto help us in that effort by offeringsustainability certification throughour Greener Apron program.GREENER POWEROver the past two years, Starbucks hascommitted to more than 140 million inrenewable energy to power our stores,reducing our environmental impact andsupporting access to green power. It’senough to power 100 percent of ourmore than 9,000 company-operatedstores in the United States, and 77percent of our global operations.We plan to locally source more than50 percent of our renewable energyin the U.S by 2020, including from ournew solar farm in North Carolina, whichdelivers enough clean energy to powerthe equivalent of the energy consumedby 600 Starbucks stores. And we arepartnering with developers to bring2new projectsonline, including a wind 1farm planned near Olympia, Wash., and08a new wind farm in Illinois that will power360 stores in that state, including thefuture Chicago Roastery.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 3
IMPACT SUMMARYLEADING IN SUSTAINABILITYCOFFEE & TEA99%E T H I C A L LYSOURCED COFFEE95%E T H I C A L LYSOURCED TEAGoal100% ethically sourced coffeeGoal100% ethically sourced tea by 2020DescriptionFor the fourth year in a row, more than99% of our coffee was verified as ethicallysourced under C.A.F.E. Practices – that’snearly 650 million pounds of it. Althoughwe are constantly striving for 100%, it’sthat last 1% where some of our mostimportant work happens, bringing onnew farmers and cooperatives to helpensure the long-term future of coffee.DescriptionOur tea is verified as 95% ethicallysourced by third-party organizationsincluding the Ethical Tea Partnershipand Rainforest Alliance to ensure thetea Starbucks sources is produced withsustainable practices and under safeand humane working conditions.31M TREES DISTRIBUTEDT O FA R M E R SGoalProvide 100 million trees to farmersby 2025DescriptionStarbucks has donated more than 31million coffee trees over the past threeyears (9.4 million in 2018) to farmers inMexico, Guatemala and El Salvador. Theseclimate-resilient trees replace ones thatare declining in productivity due to ageand disease, such as coffee leaf rust.21.7MINVESTED INFA R M E R L O A N SGoalInvest 50 million in farmer loans by 2020DescriptionIn 2018, loans reached thousands offarmers in 14 countries to strengthen theircoffee farms through tree renovation andinfrastructure improvements.52K FA R M E R STRAINEDGoalTrain 200,000 coffee farmers by 2020DescriptionOur expert agronomists have providedfree training to 52,240 coffee farmersthrough our nine farmer support centersin coffee-producing countries aroundthe world in the past two years, including27,938 in 2018. We will explore new waysto further scale our efforts.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 4
IMPACT SUMMARYLEADING IN SUSTAINABILITYGREENER CUPS& PACKAGING1210%NEW CUPTECHNOLOGIESP O S T- C O N S U M E RFIBERGoalDevelop 100% compostable andrecyclable cups by 2022GoalDouble the recycled content of our cupsby 2022DescriptionWe are currently testing a dozenpromising cup technologies developedthrough the NextGen Cup Challengewith the goal of creating an entirelyrecyclable and compostable cup.DescriptionOur hot cups currently contain 10% postconsumer fiber (PCF) and we are workingto double the recycled content.GoalEliminate single-use straws worldwide by 202070%*FEWER STRAWSDescriptionSince we announced our intention to eliminate single use-straws in July 2018,we developed and engineered a new strawless lid that eliminates the need for aplastic straw and reduces the amount of plastic by 9% versus the traditional lid andstraw. We have launched this strawless lid as the default for all iced beverages inSeattle and Vancouver, with seven more major markets planned for summer 2019.*Estimated reduction once fully implemented.10MA JOR CITIE S CURRE NTLY RECY CLE OUR CUPSGoalDouble the recyclability of our cupsby 2022DescriptionOur cups are accepted for recyclingin: Amsterdam; Boston; Dallas; Denver;London; Louisville, Ky.; New York City;San Francisco; Seattle; Washington, D.C.;and Vancouver, B.C.1.3%BEVERAGES SERVEDIN PERSONAL CUPSGoalDouble the use of reusable cups by 2022DescriptionIn 2018, 1.3% of customers in companyoperated stores in the U.S., Canada andEMEA received a discount for bringing theirown mug or tumbler, saving more than 42million disposable cups. We are workingto find new ways to encourage customeradoption of reusables, and to begin totrack for-here beverages in our reporting.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 5
IMPACT SUMMARYLEADING IN SUSTAINABILITYGREENER STORES1,600 LEED-CERTIFIEDSTORESGoalBuild and operate 10,000 greenerstores globally by 2025DescriptionStarbucks has 1,612 LEED-certified storesin 16 countries, including all 50 U.S. statesand Puerto Rico. We are also developinga new open-source framework to ensurethat all Starbucks stores are deliveringhigh standards of environmentalperformance.This year, we will launch the GreenerStore framework in 300 stores and willbe verifying that these stores are: 100% powered by renewable energy 25% more energy efficient 30% more water efficient Recycling and diverting waste Sourcing responsible materials Delivering a healthy environment Empowering partners to besustainability champions77%GREEN ENERGYG L O B A L LYGoalInvest in 100% renewable energy topower operations globally by 2020DescriptionStarbucks purchases enough renewableenergy to power 100% of its more than9,000 company-operated stores in theU.S., Canada and the UK with cleanenergy. Worldwide, more than threequarters of Starbucks operations arepowered by renewables.7,200 GREENER APRONPARTNERSGoalEmpower 10,000 partners worldwide tobe sustainability champions by 2020DescriptionMore than 7,200 Starbucks partnershave enrolled in the Greener Apronsustainability training program throughthe Starbucks Global Academy withArizona State University in the UnitedStates, Canada and Britain.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 6
IMPACTSUMMARYSTRENGTHENING COMMUNITIESFrom the neighborhoods where ourstores are located to the fields whereour coffee is grown, we are dedicated tocreating and investing in opportunitiesfor people around the world. Ourmission: to inspire and nurture thehuman spirit – one person, one cupand one neighborhood at a time.Our commitment begins with cultivatinga culture of belonging for the more than100 million people who come throughour doors each week. On May 29, 2018,we closed more than 8,000 storesacross the United States so our partnerscould join a learning session on race,implicit bias and our recommitment tothe Third Place. As our ceo KevinJohnson said, this training session wasjust one step in a journey for us to growas a company that elevates equity,diversity and inclusion in all we do. Wehave developed additional trainingmodules, asked Arizona State Universityto develop an anti-bias curriculum, andpublished a Civil Rights assessmentthat evaluates our ongoing efforts topromote equity, diversity and inclusionfor our partners, customers and thecommunities we serve.We have designed stores to servespecific community needs as well,including 12 Community Stores withyouth training in diverse, underservedcommunities in cities like Dallas,Birmingham, Ala., and Brooklyn, N.Y. Ourmore than 50 Military Family Storesserve as a hub for U.S. active servicemembers, veterans, families andcommunities. Our Signing Stores, likethe one that opened in near GallaudetUniversity in Washington, D.C. inOctober 2018, are led by partners whoare fluent in American Sign Language.2108“What you have created hereis not just an opportunity foremployment and leadershipfor people who are Deaf anda way for them to show theirwonderful talents, but a placewhere we will be able to see thevibrancy of our language,” saidRoberta Cordano, President ofGallaudet University.Our stores are dedicated to servingmore than coffee – they also servethe greater community. We encourageall our stores to participate in serviceprojects, and thousands of partners haveanswered the call with 78,000 hoursin 2018 alone. Our partners have alsorescued more than 10 million pounds offood through our FoodShare program,donating fresh, unsold meals to localfood banks in partnership with FeedingAmerica. The Starbucks Foundation hassupported organizations working tocreate job and education opportunitiesfor young people, including 1.3 millionin Opportunity for All grants in 2018.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 7
IMPACT SUMMARYSTRENGTHENING COMMUNITIESHIGHLIGHTS10M 66K MEALSSHAREDGoalRescue 100% of food available to donateby 2020 in company-operated stores inthe United StatesDescriptionMore than 10 million meals have beenshared through our FoodShare program,including 7.4 million meals in 2018.We are looking at ways to expand theprogram globally, with the effort nowunderway in Canada and pilot programsin Beijing and Shanghai.HOURS OFCOMMUNITY SERVICECommunity service is a part of ourheritage, and our partners contributedmore than 66,000 hours of service to theneighborhoods they serve. We encourageevery store to take part in service in away that is relevant and impactful totheir communities.60 COMMUNITY & MILITARYFA M I LY S T O R E SStarbucks now operates more than50 Military Family Stores near majormilitary bases across the United States,connecting local veterans and theirfamilies to services and resources. Wehave also opened 13 Community Storesin the U.S., Thailand and South Korea,each serving the unique needs of theircommunities.MAY 29, 2018175,000Starbucks took the unprecedented step of closing more than 8,000 storesin the United States for training and conversations about bias and inclusion.This work continues through ongoing training sessions.PARTNERS PARTICIPATEDIN ANTI-BIAS TRAINING2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 8
IMPACTSUMMARYCREATING OPPORTUNITIESWe believe opportunities thrive everyday in our stores. It’s inherent in ourvalues, the benefits that we provide forour partners, and the way we work tomake a difference in our communitiesand around the planet. It is rooted inour belief that it is possible to do well inthe world and do well in business at thesame time.We hope to not just create opportunity,but equal opportunity. In March 2018 weannounced we had achieved 100 percentpay equity for men and women andpeople of all races in the United Statesperforming similar work along with acommitment to achieve gender payequity in all company-owned marketsglobally. We announced 100 percentgender pay equity in Canada and Chinaone year later, and have joined theEmployers for Pay Equity consortium tohelp close the U.S. gender pay gap. Westrive to make our workplace an inclusiveone, supporting our DACA partnersand all Dreamers and efforts to offer asecond chance to Americans who havebeen incarcerated. We have expandedbenefits for transgender partners andbeen recognized as a top employer forLGBTQ workplace equality.“Strong leaders lead by exampleand Starbucks is one of thestrongest leaders in the fightfor equality and inclusion,” saidBillie Jean King.2108We have made a series of hiringcommitments to welcome newpartners from communities that mayexperience barriers to employment,with goals to hire 25,000 veterans andmilitary spouses; 10,000 refugees; and100,000 young adults not currentlyworking or in school.And we’re finding new ways to engagepartners in meaningful initiatives. Werecently completed a six-month pilotfor the Starbucks Service Fellows with36 Starbucks store partners working 20hours in their store each week whilespending another 20 hours with a localnonprofit. These models will informhow we catalyze our partners to buildenduring change in our communities.We are investing in pathways toopportunity through employment,education and training. SinceStarbucks began offering partnersan online bachelor’s degree programthrough Arizona State University withfull tuition coverage, more than 2,400have graduated and 12,000 moreare currently enrolled. There is norequirement to stay with the company:graduates are free to pursue theirdreams wherever they take them.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 9
IMPACT SUMMARYCREATING OPPORTUNITIESHIRING22K VETERANS ANDMILITARY SPOUSES71K OPPORTUNITYYOUTHGoalHire 25,000 veterans and militaryspouses by 2025GoalEmploy 100,000 Opportunity Youthby 2020DescriptionSince 2013, we’ve hired 22,500 veteransand military spouses, including 3,000in 2018, and reached the milestone of50 Military Family Stores.DescriptionSince launching the 100,000Opportunities Initiative coalition withother employers in 2015, Starbucks hashired 71,145 Opportunity Youth, 16- to24-year-olds who are out of work andnot in school.1,600 REFUGEESGoalEmploy 10,000 refugees globally by 2022DescriptionWe have welcomed and hired 1,672refugees in the United States, Canadaand Europe. We rely on partners toself-identify, which leads us to believethe total number of refugees hired isactually much higher.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 1 0
IMPACT SUMMARYCREATING OPPORTUNITIESE Q U I T Y, D I V E R S I T Y& INCLUSION42%19%SENIOR LEADERSARE WOMENSENIOR LEADERS AREPEOPLE OF COLORGoalAt the senior leadership level, 50% womenand a 50% increase in representation bypeople of color over 2015DescriptionAmong our senior leaders (senior vicepresidents and above) 42% are women,an increase of 13% since 2015, and 19%are people of color, which is the samepercentage as 2015. We have seen anincrease in representation for people ofcolor at the vice president and directorlevels since 2015.100%PAY EQUITY IN U.S.;GENDER EQUITY IN PAYIN CANADA AND CHINACOLLEGEGoal100% global gender pay equity in U.S. and company-owned marketsDescriptionWe have reached 100% percent pay equity for partners of all genders andraces performing similar work across the United States from 2017-2019. InMarch 2019, we announced that we have achieved gender pay equity inCanada and China. We have also joined with other U.S. companies to helpeliminate the gender pay gap nationwide.2,400 DIPLOMASGoalGraduate 25,000 partners by 2025through the Starbucks CollegeAchievement PlanDescription12,000 partners are currently enrolledin the program and 2,400 partners haveearned a bachelor’s degree since 2014.We are also building accessibility andimproving performance through ourPathways program.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 1 1
ABOUTTHISREPORTCONCLUSIONSCOPEREPORTING YEAROur report for fiscal 2018 focuses on ourperformance against the goals we set inthree key areas: leading in sustainability,strengthening communities, and creatingopportunities. These areas are critical toour business and are also where we knowwe can and do have the greatest impact.We’ve also included links to informationand resources publicly available atStarbucks.com regarding our financial,corporate governance, workplace anddiversity policies and performance,because these commitments are directlytied to our business.Starbucks fiscal year 2018 (October 2,2017–September 30, 2018), unlessotherwise noted.Starbucks is committed to the UnitedNations Sustainable DevelopmentGoals and uses these goals as a lensfor our social impact programs andcollaborations with others. Based onour stakeholder-engagement efforts,we also believe these areas areimportant to our customers, ourpartners, non-governmentalorganizations (NGOs) and investors.While our commitments are global,some reporting reflects results forspecific markets where noted. Wecontinue to work to validate andimprove our global reporting efforts,so we can consistently and accuratelyreport on our performance.CURRENCYAll references to currency are in U.S.dollars, unless otherwise noted.PREVIOUS REPORTSStarbucks has produced an annual globalsocial impact report since 2001. Previousyears’ annual reports are available onour website.I N F O R M AT I O N I N T E G R I T YStarbucks management is responsiblefor the preparation and integrity of theinformation reported for fiscal 2018.Through a system of internal controls,including a comprehensive verificationprocess involving internal subject matterexperts, we believe this informationaccurately represents our globalresponsibility activities and performanceresults for the fiscal year. Externalverification is provided byMoss Adams LLP.F O RWA R D - LO O K I N GS TAT E M E N T SOur reporting on global responsibilityfor fiscal 2018 includes forward-lookingstatements about the company’sbusiness and its future business plans,initiatives, goals and objectives. Theseforward-looking statements are basedon currently available operating, financialand competitive information and aresubject to a number of significant risksand uncertainties. Actual future resultsmay differ materially depending ona variety of factors including, but notlimited to, coffee, dairy and otherraw material prices and availability;successful execution of the company’sblueprint for growth and other strategies;cost reduction and other initiatives;fluctuations in U.S. and internationaleconomies and currencies; the impactof competition; the effect of legalproceedings; and other risks detailed inthe company’s filings with the Securitiesand Exchange Commission, includingthe “Risk Factors” section of StarbucksAnnual Report on Form 10-K for thefiscal year ended September 30, 2018.The company assumes no obligation toupdate any of these forward-lookingstatements.2 0 1 8 S TA R B U C K S G L O B A L S O C I A L I M P A C T R E P O R T 1 2
2018 STARBUCKS GLOBAL SOCIAL IMPACT REPORT 6 IMPACT SUMMARY LEED-CERTIFIED STORES GREEN ENERGY GLOBALLY Goal Build and operate 10,000 greener stores globally by 2025 Description Starbucks has 1,612 LEED-certified stores in 16 countries, including all 50 U.S. states an
