What is the Role and Responsibilityof a For-Profit Public Company?

S TA R B U C K S D ESI GNERS REUSED O LD S HIPPING C O NTAIN ERS T O C RE ATE TH IS L E E D -CE RTIF IE D STOR E IN TUK W IL A, WASH IN GTON .
S I MI L A R STORES HAVE OPENED IN CHICAGO , ILLINO IS AND DEN V ER , COL OR AD O.

TA BLEO F

CO NT E NT S

M E S S A G E F R O M H O W A R D S C H U LT Z

01

ETHICAL SOURCING

02

INVESTING IN FARMERS AND THEIR COMMUNITIESENVIRONMENT06

L E A D I N G I N G R E E N R E TA I L

COMMUNITY

10C R E AT I N G PAT H W AY S T O O P P O R T U N I T Y

W H AT ’ S N E X T

14PROGRESS ON GOALS

15

ABOUT THIS REPORT

19

What is the Role and Responsibilityof a For-Profit Public Company?
A year ago, I posed this question at our annual shareholders meeting. This report includes some answers
to that question.
We have always believed building a great, enduring company requires being performance-driven throughthe lens of humanity. I am proud that Starbucks not only achieved another year of record financial
performance in 2014, but we did so while doing more for our people and the communities we serve thanat any time in our history. By staying true to our mission, values and guiding principles, I believe we’ve
proven it is possible to build a world-class company with a conscience.
Over the next few years, our efforts will increasingly focus in three areas where we think we can havethe biggest impact – building a future with farmers, pioneering green retail on a global scale, and creating
pathways to opportunity for young people. With your input, we want to set ambitious goals, some of which
we may not achieve. But I strongly believe that today, more than ever, companies such as Starbucks must
lead, using their platforms and resources to create opportunities for their people, as well as for thecommunities they serve.
We believe this is our role and responsibility.

A WO MAN PICKING COFFEE CHE R R IES IN RWA N DAETHICAL SOURCING

“When we started working with Starbucks in 1998, theycertified 30 or 40 million pounds of coffee. Today, almost
400 million pounds–or approximately 96% of Starbucks
purchases–are grown sustainably, in a way that protects
nature and improves far mers’ livelihoods. That’s
extraordinary, and it is fundamentally changing the industry.”
D r. M . S a n j ayan ,E x e c u t i v e Vi c e Pre si d e n t , S e n i o r S c i e n ti st,
C o n se r v a t i o n I n t e r n a ti o n al

At Starbucks, we know our success as acompany is linked to the success of thethousands of farmers who grow our coffee.
Over the past 15 years, we have pioneered a new
approach to ethical sourcing with an aim toboth ensure a long-term supply of high quality
coffee for our customers and positively impact
the lives and livelihoods of coffee farmers andtheir communities. Our holistic model includes:
responsible purchasing practices; farmer
support; economic, social and environmental
standards for suppliers; industry collaboration;and community development programs.

Our Journey to 100%
Ethically Sourced
In 1999, when Starbucks was a company of justover 2,000 stores in a handful of countries, werecognized the need to do more to ensure thelong-term supply of the high-quality coffee on
which our business depends. We turned toConservation International (CI) to help us
promote environmentally responsible
growing methods.
ETHICAL SOURCING

Addressing the environmental impact of coffee
farming was only one piece of the puzzle. We
needed a holistic approach to sourcing that
also ensured fair pay and working conditions,
economic transparency and sound resource
management. In 2001, CI helped Starbucks
develop broad quality, social, environmental
and economic guidelines for the sustainableproduction of high-quality coffee.
Starbucks launched Coffee and Farmer
Equity (C.A.F.E.) Practices in 2004 – one of thecoffee industry’s first sets of comprehensive
sustainability standards, verified by third-party
experts. In our first year, Starbucks purchased
43 million pounds of green coffee under the
program, representing 14.5% of our total green
coffee purchases. Early on, we decided to“open source” our program, encouraging othersin the industry to join us. We also continued towork with Fairtrade and other organizations
to purchase certified coffee that helps protect
the environment and the livelihoods of farmers
in coffee-growing regions.

Starbucks ethical sourcing program
continued to grow, and in 2008 we set a goalthat by 2015, 100% of Starbucks coffee would
be ethically sourced through C.A.F.E.
Practices, Fairtrade, or another externallyaudited system. In 2014, 96% (400+million
pounds) of our coffee met this standard, with
95.5% C.A.F.E. Practices, 8.6% Fairtrade, and
1% organic (some coffees receive multiple
verifications or certifications).
Over the past decade, C.A.F.E. Practices hashelped positively impact millions of workers,
and improved the long-term environmental
and social conditions on thousands ofparticipating farms around the world. In ourjourney to 100% ethically sourced, we plan towork to continue to improve sustainability
across our industry.

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03

Building a Resilient Supply Chain
through Partnerships
Climate change represents significant
immediate and long-term risks to coffee farmers
around the world, and Starbucks is looking at
its potential impacts with organizations suchas CI. As a result of this work, Starbucks has
incorporated agricultural methods into
C.A.F.E. Practices that help reduce emissions,improve carbon storage through shade andconservation areas, and proactively manage
climate risks from pests and disease.
In addition, we are evolving our work with CI
to ensure farmers benefit from soundconservation practices either through accessto forest carbon markets or other payment forenvironmental services.

ETHICAL SOURCING

Starbucks has also gained valuable hands-on
experience with the purchase of its first farmin 2013, not far from the first Farmer Support
Center. Hacienda Alsacia is not only a fully
operational coffee farm, it is also an agronomy
research and development center that will help
us continue to develop sustainable farming
practices we can share with farming
communities around the world.

Collaborating with Coffee
Farmers through Open Source
Agronomy
For the thousands of farmers who grow
Starbucks coffee around the world,
nothing can match the power of making
a personal connection.
As Starbucks began to expand C.A.F.E.
Practices ten years ago, we needed agronomists
and quality experts in the field to help the
program take root. We started with a small teamin 2004 at Starbucks first Farmer Support
Center in San José, Costa Rica. Over the next
decade, Starbucks worked with cooperatives
and farmers to help them improve coffee quality
and farm productivity, and reduce production
costs, while striving to raise living standards.
Today, Starbucks operates six Farmer Support
Centers in key growing regions around theworld including: Rwanda, Tanzania, Ethiopia,
Colombia and China as well as a satellite officein Guatemala. We look forward to opening our
first Farmer Support Center in Indonesia in thenear future.

In 2014, we released a limited-time offering
coffee that demonstrates the benefits of ourapproach. Starbucks Reserve® Costa Rica
Geisha La Ines, was a special coffee that
resulted from a six-year collaboration between
our agronomy team and a local cooperative togrow a coffee varietal that is more disease
resistant and has exceptional quality.
The technical support Starbucks provides is
not limited to farmers whose coffee we buy,
but is available to all who are interested in
improving quality and best agricultural
practices. An innovative pilot launched

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04

in 2014 with the Grameen Foundation in
Colombia will allow us to monitor and evaluate
individual farm progress against our standards.
Farmer leaders are being trained on the
program so they can educate fellow farmers,
jointly develop farm management plans andtrack progress using tablet computers.

Creating Impact throughFarmer Loans and Community
Investments
Coffee is grown primarily in countries with
developing economies, and Starbucks green
coffee pricing model aims to foster pricestability and mutually beneficial relationships
with suppliers, while paying the prices premium
quality coffee commands.1
Providing access to credit at reasonable terms
is another important component of our farmer
support model. By investing in farmer loans,
we are helping cooperatives manage risk andstrengthen their businesses.

Starbucks investment in farmer loans with
Root Capital has grown from $150,000 in 2000
to $12 million today, including a $3 million
investment in 2014. Our contributions throughRoot Capital and other loan partners grew to$16.3 million in 2014, and we are optimistic
we will reach our goal of $20 million in total
investment in 2015.
The health and stability of coffee communities
impacts farmers and their ability to both beproductive and raise sustainable crops.
In 2014, Starbucks made a series of origin
community grants, funded by sales of our Ethos®
Water brand, to support critical infrastructure
improvements and agricultural diversification
projects. For example, in Tanzania, we’re working
with Heifer International to help smallholder
coffee farmers by introducing dairy cattle, andimproving access to clean water, sanitation
facilities, and renewable energy.

Starbucks paid an average price of $1.72 per pound in 2014.
This does not represent the coffee impact in the fiscal 2014
consolidated statement of earnings due to timing of when coffee
is purchased (amount referenced above) versus when it is used(amount reflected in the consolidated statement of earnings).
1

ETHICAL SOURCINGS TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 405

LI VI N G WA L L AT THE WA LT DI SNEY WO RLD RES O RT S TARBUCKS S TA R B U C K S 50 0 TH L EED ® - CERTIFIED S T O REENVIRONMENT

“Every time you order aStarbucks, you cast a votefor the powerful impact theretail environment can have on
our efforts to mitigate climatechange and improve thequality of life for all of us.”Ri c k Fe d r i z z i ,CEO a nd Foundi ng Cha i r m a n ,U. S. G reen B ui l di ng C o u n c i l

As a company that relies on agricultural products,
Starbucks has long been aware that the planet
is our most important business partner.
We are committed to addressing climate change
by minimizing our environmental footprint andcreating meaningful and sustained change. This
work includes our approach to green retail:building more energy efficient stores andfacilities; conserving energy and water; investingin renewable energy; and exploring new solutions
for recycling and making our cups sustainable.
While some of the ambitious environmental
goals Starbucks set in 2008 are within reach,
we have discovered unexpected challenges withothers. This doesn’t mean we should aim lower.
We believe in the importance of setting
aspirational targets rather than settling for lessambitious targets, as well as learning fromour experience to inform next steps.

ENVIRONMENT

Surpassing 500
LEED ®-Certified Stores

Nearing Our Water
Conservation Goal

Starbucks has been an industry leader in green
building for more than a decade, opening its first
LEED®-certified store in Hillsboro, Oregon
in 2005. Today, we continue to incorporate
environmental building strategies across ourstore portfolio.

In 2008 Starbucks set a goal to reduce our water
use in company-operated stores 25% by 2015.
We approached that goal in 2014 with a savingsof more than 23% over baseline levels.
We are continuing to make strides in water
conservation by implementing water-saving
solutions in new stores and water filtration
retrofits in existing ones. LEED-certified stores
have contributed to this progress by saving
an average of 25,000 more gallons of water
annually. Starbucks is actively collaboratingwith municipalities in water-stressed areas
around the world to find additional ways to help
reduce water consumption.

Since 2008, Starbucks has worked to build
all new company-operated stores globally to
LEED standards. In 2014, Starbucks opened
our 500th LEED-certified store – more thanany other retailer in the world. LEED has beensuccessfully implemented in many markets
where we operate, including 19 different
countries. In the Americas, 98% of companyoperated new stores were built to LEED
standards in 2014. Globally, the percentage
stands at 64%. Starbucks has experienced sometechnical challenges in international markets
where the U.S.-based LEED certification
program is still gaining traction. We are working
with the U.S. Green Building Council toincrease adoption of these standards.

Recognizing the Energy Impactsof our Evolving Business
When Starbucks set an energy conservation
goal of 25% in 2008, we knew it was ambitious.
Over the past six years, we have incorporated
energy conservation measures into our green

S TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 407

Breaking Down Barriers
to Recycling
Providing front-of-store recycling is an
important part of Starbucks effort to develop
comprehensive recycling solutions. In 2014 we
added customer-facing recycling to more than
760 stores, bringing our total to 3,849, or 47%
of our company-operated locations in the U.S.
and Canada.

L E E D-C ERTI F I ED STORE I N LANGS UAN, BANGKO K

construction strategy, such as using naturallighting where possible and installingenergy-efficient light fixtures and appliancesin both new and existing stores. The company
recently completed the installation of new
Energy Management Systems in approximately
4,000 stores to optimize heating and coolingand enable us to identify additional
opportunities in the future.
Despite these efforts, energy performancehas only improved a net total of 4.6% over ourbaseline levels, as energy requirements to
support our expanded food platform offset gains
from ongoing conservation measures. Even
with the significant change in our businessand associated increase in energy needs, we
still project a net energy reduction by the endof 2015 versus our baseline and will continue
to explore ways to reduce energy use
going forward.

ENVIRONMENT

Investing in Renewable Energy
In addition to reducing water and energy
consumption, Starbucks is focused on
advancing renewable energy sources throughpurchasing practices. For almost a decade,Starbucks has been one of the U.S.
Environmental Protection Agency’s top
purchasers of renewable energy in the UnitedStates, buying more than half a billion kilowatt
Starbucks community store . Langsuan . Bangkok
hours of wind energy over the past year alone.
In 2014, Starbucks purchased renewable energy
equivalent to more than 59% of the electricity
used in our global company-operated stores.
Although we have applied renewable energy
purchases to our total global energy footprint,
the renewable energy credits purchased wereprimarily designed to spur development of the
U.S. renewable energy market. We areworking with our international partners to
identify regionally relevant solutions. Currently,
we are on track to purchase renewable energy
equivalent to 100% of the energy used in our U.S.
and Canadian company-operated stores by theend of 2015.

By the end of 2015 we expect to complete therollout of our recycling program across the U.S.
and Canada. Unfortunately, this does not mean
we can provide recycling in every store. We
continue to face challenges with stores locatedin municipalities that don’t provide commercial recycling and with landlords who do notprovide access to recycling services. We willcontinue to work across the industry to findinnovative ways to reduce landfill waste andexplore alternative solutions.

Raising Awarenessof Reusable Cups
Reusable cups are an important componentof Starbucks overall waste reduction strategy.
For 30 years, we’ve rewarded customers with a
discount when they bring in a personal tumbler.
It is our goal to serve 5% of the beverages
made in stores in tumblers and mugs brought
in by our customers, and in 2014 our customers
did that 47.6 million times, up from 46.9 million
in 2013.
We have found that bringing a mug or tumbler to a Starbucks store requires a change inpersonal behavior, and have seen only gradualimprovements in tumbler use year-over-year.

S TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 408

Customer tumbler use briefly spiked up to 2.5%
for a short time during the launch of the $1
reusable cup (£1 in the UK) and other special
promotions such as the White Cup Contest,
but consumer adoption remained flat to 2013’s
overall level at 1.8%. We will continue to look forways to encourage our customers to make theswitch to reusable cups.

Looking Beyond our Stores
While our store operations account for the
majority of our direct environmental footprint,
we are also working to incorporate
environmental design into our manufacturing
facilities. This includes roasting plants,
coffee processing facilities, and our Evolution
Fresh juicery. We are excited that in 2014
Starbucks Roasting Plant and Distribution
Center in York, Pennsylvania was certified
for 100% Landfill Diversion by Underwriters
Laboratories.

Starbucks $1 reusable cup

ENVIRONMENTS TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 4

09

PART N E R S IN THE 2 3 RD & JACKS O N S T O RE IN S EAT T LE

COMMUNITY

“The partnership with
Starbucks has been so much
more than we imagined.
They go way beyond; theyroll up their sleeves and get
the work done with us.”B ea tri c e G a r z a ,P res i dent & CEO, AA M A

Participants in the Starbucks Apprenticeship Programme in the UK

Starbucks has always been a place that hasbrought people together. Our mission: to inspireand nurture the human spirit – one person,
one cup and one neighborhood at a time.
As a major employer - with 150,000 partners(employees) in the U.S. and more than 300,000
worldwide who wear the green apron - attracting
and retaining the best people is critical to ourbusiness. Almost 73 million youth worldwide arelooking for work, yet employers struggle to filljobs due to a lack of qualified candidates.
Something is broken. There’s clearly more needthan any one company or industry can address,
but Starbucks is increasingly focused on how we
can leverage our business and our scale to start torespond to the crisis – one young person at a time.

Building the Workforceof the Future
Our efforts to help build the workforce of the
future start with our own people. In 2014 weintroduced the Starbucks College Achievement
Plan - an innovative education benefit to help
Starbucks partners complete their degrees
online through Arizona State University.
We have also hired nearly 2,000 new partners
over the past year as a direct result of Starbucks
multi-year strategy to hire 10,000 veteransand military spouses by 2018. We view both
initiatives as key components of our strategy
to attract partners who share Starbucks mission
and values.

Investing in Lifelong Opportunity

In 2014 we awarded more than 100 grants
through the Starbucks Youth Leadershipprogram to local organizations in 14 countries.
Although the programs and organizations
vary around the world, the impact for youth
is significant.
In the United States, Starbucks and the
Schultz Family Foundation have supported
a barista training program in Seattle foropportunity youth through YouthCare and
FareStart for the past decade. In 2014 we
expanded the program nationally, working
with YouthBuild USA to create the Customer
Service Retail Excellence Training
Program, which helps students develop
customer service skills based on the training
Starbucks store partners receive.

Too many young people face systemic barriers
to opportunity due to lack of education and/or
skills needed to enter the workforce. This groupis often referred to as “opportunity youth.”

COMMUNITYS TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 4

11In Canada, Starbucks supports workplace
programs in Calgary, Toronto, and Vancouver, that combine in-class core life skills andemployability training with real-life on-the-job
work placement experience.
And in China, Starbucks is furthering our
relationship with China’s Soong Ching Ling
Foundation with a youth leadership development program to help students build theirskills and access mentorships with
Starbucks senior leaders.
As Starbucks continues to refine its focus on
supporting lifelong opportunity, our grants
program will shift to programs supporting
opportunity youth to help address needs in theircommunities. For more information, please
visit the Opportunity for Youth pageon our website.

Collaborating throughCommunity StoresStarbucks Community Stores program

COMMUNITY

supports local non-profit organizations in theirefforts to provide the training and educationthat can eradicate the cycle of poverty for thisgeneration of young people. Since opening our
first Community Store in 2011, Starbucks has
opened eight stores and raised over $900,000
toward local non-profits focused on providing
opportunities to young people in thosecommunities.
The Community Stores model creates a reliable
stream of resources for the non-profit organization, raises awareness of their work, and createsa space for community dialogue and engagement. In 2014, Starbucks added its second
international location, in Seoul, Korea as wellas two Military Community Stores to support
transitioning veterans in the United States in
Lakewood, Washington and San Antonio, Texas.

Promoting Global Service
with Impact

Starbucks worked with nonprofit organizations
to bring our partners, customers, andcommunity leaders together to contribute
more than 520,000 hours of volunteer service
around the world. During Starbucks fourthannual Global Month of Service in April, nearly
60,000 volunteers contributed over 232,000
hours in more than 30 countries. Altogether,
the projects benefitted an estimated 1.4
million people with a value of $5.2 million
for our communities.
Although the total number of hours in 2014
decreased slightly over the previous year, we’vealso seen some encouraging trends. For every
one hour contributed by a Starbucks partner,
nearly two hours came from a customer. Our
partners’ ability to bring their customers alongon the journey to improve communities is
one way we believe we are able to have abigger impact.

Coming together in service represents afundamental act of citizenship. In 2014,

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Starbucks Foundation andCorporate Giving
The Starbucks Foundation is a separate
501(c)(3) charitable organization that receives
funding primarily from Starbucks Corporationand private donations. The Starbucks
Foundation gave $13.1 million in 2014, making
144 grants to nonprofit organizations. Grants
included $3.37 million for Starbucks Youth
Leadership Grants and $4.2 million in social
development grants in coffee-growing
communities.
In 2014 Starbucks Corporation gave $11.4
million in cash, including $1.9 million to the
Starbucks Foundation, and $38.8
million in in-kind contributions. Corporate
giving included funding for communitybuilding programs – including a $2 million
donation from the sale of Teavana® Oprah Chai
Tea to the Oprah Winfrey Leadership Academy
Foundation, and our partnership with (RED)™
through which Starbucks and our customers
have generated more than $12 million since2008 for the Global Fund to help eradicate
HIV/AIDS in Africa.

Diversity and Inclusion
As a global company with a diverse customer
base and an ever-changing workforce, diversity
and inclusion is not just a business priority,
it’s a necessity. A key element of our long-term
growth strategy is creating a workforce thatreflects the communities we serve around theworld.

COMMUNITY

To achieve this, we are working to create
opportunities to attract, develop, retain andengage our future workforce. We are focusedon how we continue to evolve our diversity andinclusion strategy, to meet the challenges of ourincreasingly global business. From providing aplatform for open conversation about inclusion,
race, and other differences, to offering training
focused on unconscious bias and elevating ourpartner networks, we not only want, we needpartners to be actively engaged in our efforts.
Currently, about 40% of our U.S. partners
are minorities; 65% are women. Of our vicepresidents, 48% are women and 15% areminorities. Among our top leaders – defined
as senior vice president or higher – 18% areminorities and 29% are women.
We know there are tremendous opportunities
to engage diverse job candidates and partners,
particularly through key company initiatives
such as the Starbucks College Achievement
Plan and the UK Apprenticeship Program.
As part of this work, we are continuing to buildand foster partnerships with diverse professional organizations, nonprofit organizations,businesses, civic leaders and individuals as key
resources and connections to talent and thecommunities we serve.
As we continue to build our global footprint in
the marketplace, diversity and inclusion willcontinue to be our strength, and a criticalcomponent of how we do business.

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13W H AT ’S

N EXT

It’s clear to us that Starbucks has its
greatest potential for impact when the company
works with farmers, partners, customers, andlike-minded organizations to move ourindustry forward. Looking ahead to where
Starbucks wants to be in five years, we believe
we can continue to move our sourcing model
toward greater sustainability, find new ways
to minimize our environmental footprint, andcreate new opportunities for young people as
we build our workforce of the future.

Building a Future with Farmers
As Starbucks continues it’s journey to 100%
ethically sourced coffee, we believe it ispossible to make coffee the world’s firstsustainable commodity. We are also applying
what we have learned to other areas ofStarbucks business such as tea, cocoa,
and manufactured goods.

Pioneering Sustainable Solutions
Using our scale to innovate and test green
practices, we are now challenging
ourselves to harness what we’ve learned tocontinue to drive positive change both within
our own stores and across the entire industry.
We will also continue to mitigate the risks toeconomic, social and environmental stability
and advocate for climate legislation throughBusiness for Innovative Climate and Energy
Policy (BICEP) and others.

Creating Pathways
to Opportunity

By collaborating with passionate and knowledgeable organizations across every sector,
we will identify and implement innovative
solutions to challenges at local, national, andinternational levels.
As we near the end of our 2015 objectives,
Starbucks looks ahead to a new chapter
setting goals for 2020. Over the next year,
Starbucks looks forward to engaging
stakeholders around the world as we determine how best to deliver on our responsibility
as a for-profit public company.
Please feel free to share your feedback withus at globalresponsibility@starbucks.com.

We believe taking a comprehensive approachto creating pathways to opportunity offers
Starbucks a way to contribute to theneighborhoods in which we do business,while supporting the young people who will
be our future workforce. As a key next step,
we have committed to hire 10,000 opportunity
youth by 2018.

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14

2014 GOAL CHARTS ETHICAL SOURCINGGOAL

PROGRESS

Ensure 100% of ourcoffee is ethicallysourced by 2015

96% of our coffee was
ethically sourced in 2014
through C.A.F.E. Practices,
Fairtrade, or anotherexternally audited system.

KEY LEARNINGS

Taking a comprehensive approach –including external verification, on the
ground farmer support and farmer
loans – has been instrumental in moving
us toward our 100% goal.

Total coffee purchases

396

461

Total ethically sourced
coffee purchases

377

441

95%

96%

100%

2013

2014

2015

(in millions of lbs)

(in millions of lbs)

Includes green coffee purchases for all Starbucks brands.

GOAL

Invest in farmers
and their communities
by increasing farmer
loans to $20 million
by 2015

PROGRESS
Increased our investment
to $16.3 million, a 27%
increase over 2013.

KEY LEARNINGS
2015
$20M
2014
$16.3M2013$11.9M

Access to affordable credit for coffee
cooperatives and farmers can increase
productivity and quality and helps create
sustainable livelihoods for small-scale
farmers.

$

Commitment is defined as being made either by public declaration of intent or signed contract.

GOAL

PROGRESS

Implement
front-of-store
recycling in ourcompany-operated
stores by 2015

An additional 763 stores in
the U.S and Canada
entered the program in2014, bringing us to 47%
of company operated storesin those markets.

100%
2015

Percent of store locations
with front-of-store recycling

47%
2014

39%
2013

U.S. and Canada company-operated stores.

S TA R B U C K S G L O B A L R E S P O N S I B I L I T Y R E P O R T 2 0 1 415

2014 GOAL CHARTS ENVIRONMENT
2013

2014

2015

Includes green coffee purchases for all Starbucks brands.

GOAL

PROGRESSGOALPROGRESS

Build all new,company-operated
Invest toin farmers
storesachieve®
and
theircommunities
LEED certification
by increasing farmer
loans to $20 million
by 2015

We have achieved LEED®
certification in over 500
stores in 19 countries – more
Increased our investment
than any other retailer.
to $16.3 million, a 27%
increase over 2013.

KEY LEARNINGS
612

629

2015
$20M
65%

64%

2013

2014

2013
$11.9M2014$16.3M

Green building strategies have been
incorporated into both new and existing
stores, including international stores.
We continue to experience challenges insome of our high growth markets where
LEED® is still gaining traction and areworking to address this issue.

$
Percentage of total stores vs number of new company-operated stores
built per year to achieve LEED® certification.
Commitment is defined as being made either by public declaration of intent or signed contract.

GOAL

Implement
front-of-store
recycling in ourcompany-operated
stores by 2015

KEY LEARNINGSPROGRESSAn additional 763 stores in
the U.S and Canada
entered the program in2014, bringing us to 47%
of company operated storesin those markets.

100%
2015

Percent of store locations
with front-of-store recycling

47%
2014

39%
2013

U.S. and Canada company-operated stores.

GOAL

Serve 5 percent ofbeverages made in
our stores in personal
tumblers by 2015

KEY LEARNINGSPROGRESS
Personal tumbler use
increased by over 640,000
beverages in 2014 but
remained flat as a percentage
of total beverages served.

Although we will have rolled recycling out
to all US & Canada markets by end of 2015,
we continue to face challenges. We did not
anticipate barriers to execution including
landlord alignment, space constraints
and limitations of municipal infrastructure.
We will continue to look for ways to improve
performance and leverage learnings
internationally.

Percent of beverages served in personal tumblers

1.8%

1.8%
46.9 Million
Beverages

20135%
47.6 Million
Beverages

2014

Our customer personal tumbler use peaked
at a monthly average of 2.5% with the $1
reusable cup introduction and promotions.
While interest increases with innovationsuch as the White Cup Contest, consumer
demand and behavior change remains low.
We will continue to work to leverage successand increase awareness.

2015

U.S., Canada, UK, France, Germany, Netherlands company-operated stores.

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service per year byservice2015 per year by
2015

2014
Includes2013
all global markets regardlessof ownership.

2015

Includes all global markets regardless of ownership.

2014 GOAL CHARTS ENVIRONMENT
GOAL
GOAL

Reduce energy
Reduceenergyconsumption
byconsumption
by
25% in our company25%
in ourstorescompanyoperated
operatedstoresby 2015
by 2015

PROGRESSPROGRESSOur energy performance
Our
energyperformance
declinedslightly
in 2014,declinedin 2014,to
as energyslightly
requirements
asenergyourrequirements
supportexpanded tosupportour expanded
food platform
offset gains
foodoffset gains
from platform
ongoing conservationfromongoing conservation
measures.
measures.

KEY LEARNINGSBASELINE
BASELINE

7.1%
Decrease
7.1%
Decrease

When we set this aspirational goal, we
did not foresee the transformation in
our food business, which has increased
energy use in our stores. Despite thissignificant change in our business andassociated increase in energy needs ,we still project a net energy reduction at
the end of 2015 from our baseline.

4.6%
Decrease
4.6%
Decrease

25%
Decrease
25%
Decrease

2008

2013

2014

2015

6.8
KWH
2008

6.32
KWH
2013

6.49
KWH
2014

5.10
KWH
2015

6.49 KWHU.S. and Canada
5.10 companyKWH
6.8 KWH
Averageelectricity use6.32
per KWH
square foot/store/month
operated stores. Percentage change to the 2008 baseline.
Average electricity use per square foot/store/month U.S. and Canada companyoperated stores. Percentage change to the 2008 baseline.

GOAL
GOAL

PROGRESSPROGRESS

Purchase renewable
Purchase
renewableenergy equivalentenergyequivalent
to 100% of theto100% ofusedtheelectricity
electricity
usedin our globalinour global
company-operated
company-operated
stores by 2015
stores by 2015

We purchased renewableWepurchased
renewableenergyequivalent
to moreenergyequivalent
to morethan 59%of the electricity
than
ofglobalthe electricity
used59%in ourused
in our global storescompany-operated
company-operated
stores-- and 74% of that usedin-andthat used in
the
US74%
and ofCanada.
the US and Canada.

GOAL
GOAL

PROGRESSPROGRESSKEY LEARNINGS

650 Million
KWH
650 Million
KWH
785 Million
KWH
785 Million
KWH

54.9%
54.9%
59.3%
59.3%
100%
100%

2013
2013
2014
2014
2015
2015

KEY LEARNINGSBASELINE

Reduce water
Reducewater
consumption
consumption
by 25% in ourby
25% in ourcompany-operated
company-operated
stores by 2015
stores by 2015

Water consumption
Water
consumption
decreased
2% over thedecreased
2% over us
thetoprior year, bringing
prior
bringing
us toa totalyear,
decreaseof 23%
asincetotal2008.
decrease of 23%
since 2008.

Although we have applied our renewableenergy purchases to our total global energy
footprint, they are primarily designed tospur development of the US renewableenergy market. We are working with ourinternational partners to develop regionally
relevant solutions.

BASELINE

21.1%
Decrease
21.1%
Decrease

23.1%
Decrease
23.1%
Decrease

2008

2013

2014

24.35
gal
2008

19.22
2013gal

18.73
2014gal25%
Decrease
25%
Decrease

Although key water savings equipment
has been identified, it takes time to retrofit
our store portfolio and start generating
results. We currently plan for 500 morewater filtration retrofits, which should
help us toward our 25% reduction goal.

2015
18.27
2015gal24.35 gal
gal
18.73andgalCanada 18.27
gal
Average water
use per square 19.22
foot/store/month
U.S.
company-operated
stores.
Percentage change to the 2008 baseline.
Average water use per square foot/store/month U.S. and Canada company-operated stores.
Percentage change to the 2008 baseline.

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17

2013

2014

2015

2014 GOAL CHARTS COMMUNITY

U.S., Canada, UK, France, Germany, Netherlands company-operated stores.

KEY LEARNINGS

GOAL

PROGRESS

Mobilize ourpartners (employees)
and customers tocontribute 1 million
hours of community
service per year by2015

We continued to provide
over half a million
community service hours
in 2014.

GOAL

PROGRESS

Although pleased with our total numberof hours, we believe our partners andcustomers volunteered more hours than
this total reflects. We’ve updated ourcommunity service website and willcontinue to address other obstacles toreporting hours. We are exploring ways
to convey a more holistic story of impact
from our community service andsocial investments.

1 Million
630,912
Hours

Hours

523,974
Hours

2013

2015

2014

Includes all global markets regardless of ownership.

2014 GOAL CHARTSGOAL SUMMARYBASELINE

4.6%
Starbucks Global Responsibility Goal7.1%
Performance
Summary
Decrease

Our energy performance
Reduce energy
declined slightly
Goal
Unit in 2014, 2008
consumption by
as energy requirements to77
Ensure 100%of our coffee
is ethically sourced by
2015
supportour %expanded25%
in ourcompanyfood platform offset gains
Invest in farmers and their communities by
operatedstores$M
12.5
increasing farmer loans to $20 million by 2015 from ongoing conservationby
2015
measures.
Mobilize our partners (employees) and customers to2009

Decrease
2010

2011

2012

2013

2014

Goal

Footnotes

81

84

86

93

95

96

100%

2008-2011 results include C.A.F.E. Practices only.

14.5

14.6

14.7

15.9

11.9

16.3

$20M

Commitment is defined as being made either by
public declaration of intent or signed contract.

25%
Decrease

contribute 1 million hours of community service per
year by 2015

Hours

245,974

186,011

191,224442,353613,214

630,912523,974

1M

Engage a total of 50,000 young people to innovate
and take action in their communities by 2015

PeopleN/A

20,86853,67350,05054,848N/A

N/A

50,000

2008

2013

2014

2015

Implement front-of-store recycling in our companyoperated stores by 2015%

N/A

6.8 KWH

6.32 KWH

6.49 KWH
18245.10 KWH

39%

47%

100%

Average electricity use per square foot/store/month U.S. and Canada company382
1,390
1,843
3,087
operated stores. Percentage change to the 2008 baseline.

3,849

Serve 5 percent of beverages made in our stores inpersonal tumblers by 2015

GOAL
Reduce energy consumption by 25% in ourcompany-operated stores by 2015

StoresN/A

5

5%2008 results for US and CA including Youth Action
Grant service hours; 2009-2014 includes all global
markets regardless of ownership.
2010-2012 ACHIEVED; now tracking new youth
leadership metrics.

2010-2013 U.S. and Canada company-operated stores.

2008-2011 results restated using total beverages vs.
total transactions.

%

1.1%

1.4%

1.5%

1.5%

1.5%

1.8%

1.8%

#

22,090,511

26,257,492

32,650,747

34,199,507

35,754,382

46,970,869

47,611,577

0

1.7%

3.3%

7.5%

6.5%

7.1%

4.6%

25%

Pecentage change to the 2008 baseline.
Average energy use per square foot/store/month
U.S. and Canada company-operated stores.

6.69

6.58

6.29

6.36

6.32

6.49

5.10

Avg electricity use per square foot/store/month U.S.
and Canada company-operated stores.

650 Million
25KWH

54.9%58

50

51

55
2013

59

100%

259.5

580

558

586

650

785

-21.7%-17.6%-17.5%-21.1%-23.1%

25%

22.36

100%19.09

20.11

20.08

2015
19.22

18.73

18.27

N/A

N/A

75%

69%

65%

64%

100%

U.S., Canada, UK, France, Germany and Netherlands
company-operated stores.

PROGRESS%We purchased
KWHrenewable 6.80
Purchase renewableenergy equivalent to moreenergyequivalentthan 59% of %the electricity 20
Purchase renewable energy equivalent to 100% ofused in our global
to
100%used
ofinthethe electricity
our global company-operated
company-operated
Million KWH stores211.3
stores by 2015
electricity
used-- and 74% of that used in%0
the US and Canada.
consumption by 25% in our companyinReduceourwater
globaloperated stores by 2015
Gallons
24.35
company-operated
Build all new,company-owned
storesby
2015 stores to achieve%
N/A
LEED certification

785 Million
KWH

-8.3%

59.3%

2014

2008-2010 goal and results based on for 50% of U.S.
and Canada company-operated stores.

Percentage change to the 2008 baseline. Averagewater use per square foot/store/month U.S. andCanada company-owned stores. 2009-2012 results lower
by .1-.2% due to differences in rounding methodology.
Percentage of new company-owned stores built toachieve LEED® certification.

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18

A B O U T

T HE

2 014

RE P ORT

Scope

Our report for fiscal 2014 focuses on our performanceagainst the goals we set in 2008 in three key areas: ethicalsourcing, environmental stewardship and community
investments. We’ve also included links to
information and resources publicly available atstarbucks.com regarding our financial, corporate
governance, workplace and diversity policies, andperformance because these commitments are directlytied to our business.
In developing this report, we’ve covered topics and issues
that are important to Starbucks and our stakeholders basedon year-round engagement with and feedback fromadvocates and investors, and via easily accessible
customer and Starbucks partner (employee) tools suchas My Starbucks Idea, Starbucks social media channels(Starbucks and Starbucks Partners Facebook, Twitter,
Instagram) and our Customer Service team. These efforts
are complemented by industry and trend analysis conductedby strategic advisory firm SustainAbility and Edelman
public relations, along with direct conversations with themany organizations with which we work. By ensuring bothinternal and external engagement is a critical component of
how we do business, we help ensure our programs, policies,
and the content of this report are material to our businessand our stakeholders.

Boundaries

As with previous Global Responsibility reports, this year’s
report highlights the work we are doing in ethical sourcing,community investments and environmental stewardship.
These areas are critical to our business and are also where
we know we can and do have the greatest impact. Based on
our stakeholder engagement efforts, we also believe they
are important to our customers, our partners (employees),
non-governmental organizations (NGOs) and investors.
In addition, issues related to health and wellness andworkplace policies are vital elements of our business andof considerable interest to key stakeholders.
While our commitments are global, our reporting – withthe exception of our coffee purchases – is focused largely

on Starbucks U.S. and Canada company-operated retail storesand global supply chain operations. These operations, together
with our coffee purchases, currently represent the mostsignificant segment of Starbucks social, environmental andeconomic impacts based on percentage of revenue and numberof stores covered. Information regarding the coffee sold andserved by all Starbucks brands and retail stores globally,
company-operated or licensed, including Starbucks Coffee,
Seattle’s Best Coffee and Torrefazione Italia, is covered.
Starbucks uses the Credit360 program to manage oursustainability data for the purposes of reporting on andtracking key performance indicators, providing ongoing
visibility into our operations and impacts enterprise-wide, as
well as for approval and audit purposes. We continue to workto validate and improve our global reporting efforts so we canconsistently and accurately report on our performance.

Reporting Year

Starbucks fiscal year 2014 (September 30, 2013September 28, 2014), unless otherwise noted.

Currency

All references to currency are in U.S. dollars, unlessotherwise noted.

Previous Reports

Starbucks has produced an annual report since 2001.
Previous years’ Global Responsibility Reports areavailable on our website atwww.starbucks.com/responsibility/global-report.

Information Integrity

Starbucks management is responsible for the preparation andintegrity of the information reported for fiscal 2014. Througha system of internal controls, including a comprehensive
verification process involving internal subject matter experts,
we believe this information accurately represents our global
responsibility activities and performance results for the fiscal
year 2014. External verification is provided by Moss Adams
LLP. All infographics related to our goal performance arevisual representations of progress, and not to exact scale.

Forward-Looking Statements

Our reporting on global responsibility for fiscal 2014
includes forward-looking statements about the company’sbusiness and its future business plans, initiatives, goals andobjectives. These forward-looking statements are basedon currently available operating, financial and competitive
information and are subject to a number of significant risks
and uncertainties. Actual future results may differ
materially depending on a variety of factors including, but
not limited to, coffee, dairy and other raw material prices
and availability; successful execution of the company’s
blueprint for growth and other strategies; cost reduction
and other initiatives; fluctuations in U.S. and international
economies and currencies; the impact of competition; theeffect of legal proceedings; and other risks detailed in thecompany’s filings with the Securities and Exchange
Commission, including the “Risk Factors” section ofStarbucks Annual Report on Form 10-K for the fiscal
year ended September 28, 2014. The company assumes
no obligation to update any of these forward-looking
statements.

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To inspire a nd nurtureth e human spirit – one p erso n ,one c up and one neighb orh o o d
at a time .