GLOBAL SOCIAL IMPACT
2017 Performance ReportAt the heart of Starbucks is our mission: to inspire and nurture the human spirit—one person, one cup and
one neighborhood at a time. That sense of purpose extends beyond our stores, to our partners and their families,
the communities we serve, and the planet that we all share.
Since publishing our first social responsibility report in 2002, our business and our world have grown increasingly
complex. Every year since, we have set ambitious goals, shared our accomplishments and challenges, and thenstretched to new ones.
Our 2017 social impact report reflects our endeavor to transparently live our mission, and we have successes tocelebrate. Starbucks has reached 100 percent pay equity for partners of all genders and races performing similar
work across the United States and are working toward closing the gender pay gap for all partners in company-operated
markets worldwide. We made inroads in our effort to finding a solution to a greener disposable cup and are well on
our way to making coffee the world’s first sustainable agricultural product. We also opened our doors to our tenthCommunity store to help create local jobs and provide in-store job-skills training in underserved communities.
But we have also fallen short. The arrest of two African American men waiting for a friend at a Philadelphia Starbucks
was antithetical to our values and vision for the kind of company we want to be. On May 29, 2018, we closed more than
8,000 U.S. stores to gather as a Starbucks family and began the long-term work we must do to strengthen our cultureof belonging, welcoming and being a place for all. This was designed to be a powerful and uplifting day and, in someways, a new start for our company.
There is no finish line. Just a continuing aspiration to conduct our business in ways that will continue to earn your trust,
redefining the role and responsibility of a for-profit global company. I invite you to join us on this journey.
Respectfully,

Kevin Johnson
president and ceo
2The way forward.
Our 2017 Global Social Impact Performance report marks our progress as a company,
one that’s performance-driven through the lens of humanity. Together with our morethan 330,000 partners and organizations like Conservation International and Feeding
America, we can use our scale for good.
We’ve made this progress by being purposeful in our decisions and our collective actions,and we have bold, new aspirations for the years ahead. Our efforts are focusedin four areas where our commitment and scale can make the biggest impact:

SUSTAINABLE COFFEE 4Working to make coffee the world’s first sustainable agricultural product.

GREENER RETAIL 8

Building and operating the world’s largest green retail business.

CREATING OPPORTUNITIES 12

Investing in pathways to opportunity through employment, education and training.

STRENGTHENING COMMUNITIES 16
Welcoming all and creating impact on issues that matter.

starbucks.com/social-impact

3

OUR FUTURE IN SUSTAINABLE COFFEE
Committed to 100 percent ethically sourced coffee everywhere.

Since 2015 Starbucks coffee has been verified
99 percent ethically sourced, the largest coffee
retailer to achieve this milestone. While we arecommitted to our goal of reaching 100 percent,
we believe it’s that last one percent where our work
can make the biggest impact. It’s here—working
with still-developing coffee farmers—where we
can help them improve the quality of their coffee
and the growing conditions of their farms. And
by sharing our best practices with others in theindustry, we hope to reach not just 100 percent
in our own supply chain, but make coffee the firstsustainable agricultural product.
®

AN OPEN-SOURCE APPROACH
Behind the beverages served in our 28,000 storeseach day are more than two million farmers andworkers who grow our coffee around the world.
C.A.F.E. (Coffee and Farmer Equity) Practices is
our cornerstone coffee-buying program consistingof best practices that has the potential toincrease the prosperity and resiliency of farms
and livelihoods. Starbucks also invests in coffee

4communities, sharing agronomy practices andour coffee knowledge. We leverage technology todevelop new approaches to ensure the future ofhigh-quality coffee, including a new traceability
pilot project announced in 2018.
Starbucks operates nine Farmer Support Centersin key coffee-producing countries around theworld, from Yunnan, China, and Kigali, Rwanda,
to our newest center in Chiapas, Mexico, and a
Global Agronomy Center at Hacienda Alsacia in
Alajuela, Costa Rica. Our open-source agronomy
approach gives farmers access to the latest
findings from our top agronomists, including
new varietals of disease-resistant trees andsoil-management techniques.
In Colombia a public-private partnership with
USAID (U.S. Agency for International Development)
is training the country’s next generation of coffee
farmers in post-conflict regions and transitioning
farmers from growing coca (used for the
manufacturing of cocaine) to coffee.

With this global network, we have already trained
nearly 25,000 coffee farmers and are working toreach 200,000 coffee farmers by 2020.
D ONATING HE ALTHY
COFFEE TREESNow more than ever, the future of coffee depends
on healthy trees. More than 21 million trees havebeen donated to coffee farmers since 2015, toreplace trees that are declining in productivity
due to age and disease, such as coffee leaf
rust. We are working toward a goal of providing
100 million climate-resilient coffee trees tofarmers by 2025.
GLOBAL FARMER FUND
The Starbucks Global Farmer Fund is a
$50 million commitment to provide loans
to coffee farmers to strengthen their farms
through coffee tree renovation and infrastructure
improvements, including a $2 million farmer
loan commitment from Starbucks in partnershipwith the Inter-American Development Bank (IDB)CARLOS MARIO
14-year partner
director of Global Agronomy, Costa Rica

to support 2,000 primarily women coffee growers
in Colombia. This investment in the future ofcoffee serves an important need by providing
financing to farmers who may not qualify forcommercial loans.
MAKING COFFEE THE
FIRST SUSTAINABLE
AGRICULTUR AL PRODUCTWe know that the greatest challenges can besolved faster if we work together. That’s why
Starbucks is one of the founding members of the
Sustainable Coffee Challenge, a diverse industry
coalition led by Conservation International withthe call to action of making coffee the world’s firstsustainable agricultural product.
The Challenge formed in 2015 at the United
Nations Climate Change Conference in Paris
with 18 like-minded organizations. It has sincegrown to more than 100 global partners acrossthe industry, including other roasters, nongovernmental organizations and the governmentsof Mexico and Rwanda, as well as U.S.
government partners USAID and USDA. Challenge
partners are urgently working together to increasetransparency, aligned to the common vision that
all coffee can be produced using sustainable
practices. In 2017 the Sustainable Coffee
Challenge launched its first four action networks
to coordinate industry action and investment,
including an effort to replace aging trees.

INVESTING IN SUSTAINABILIT Y
Starbucks issued its first sustainability bond in2016 with a U.S. corporate bond offering andour first global yen-denominated corporate
sustainability bond in March 2017 in Japan.
The net proceeds of the latest offering of 86
billion Japanese yen will go toward investments
in Starbucks ethical sourcing programs, including
operations of Farmer Support Centers in coffeegrowing regions and loans through Starbucks
Global Farmer Fund.
ADVANCING TEA AND
COCOA SUSTAINABILIT Y
Like coffee, our approach to buying tea is designed
to ensure a long-term, high-quality supply while
contributing positively to the environment andfarming communities. For more than 10 years,
we have partnered with the Ethical Tea Partnership(ETP) to ensure the tea Starbucks sources is
produced with sustainable practices and under safeand humane working conditions. As of 2017, nearly
72 percent of tea was ethically sourced and we’re
working toward a goal of 100 percent ethicallysourced tea by 2020.
For other ingredients such as cocoa, we are working
with industry partners such as the World Cocoa
Foundation to advance ethical sourcing practices,extending our policy around deforestation andcommitting to 100 percent ethically sourced
beverage ingredients by 2020.

5

Connectedby Coffee
The first time Alan Tong, director of the Starbucks
China Farmer Support Center, tasted Starbucks
Single-Origin Yunnan™ coffee he cried because it
was so much more than a cup of coffee. Grown inthe countryside of southern Yunnan Province, thecoffee trees flourish among acres of rolling green
hills, rice terraces and the stunningly surreal
karst landscapes the region is known for.
For Tong the rich flavor, herbal notes andsmoothness of this one-of-a-kind coffee spur
memories of farmers walking among the coffee
trees, seeing the faces of those who pick thecoffee cherries and all the care and precisionthat led to that moment.
Starbucks purchased its first coffee from China
in 2009 and in 2012 opened its sixth Farmer
Support Center, and its first in Asia, to offercoffee-growing guidance, soil testing and more
to local growers. “Come learn,” Tong invitedthe farmers.
Today the Yunnan Farmer Support Center in China
has trained nearly 10,000 farmers in sustainable
farming practices. And 1,200 farms are now
verified through C.A.F.E. Practices. For Tong,
the farmers of China are more than suppliers
and partners, they are his neighbors and friends
creating top-quality coffee shared with all ofChina—including the Starbucks Reserve™
Roastery in Shanghai.

6

SUSTAINABLE COFFEE GOALSSOURCING COMMITMENT

100% Ethically
Sourced Coffee
STARBUCKS GLOBALFARMER FUND

Invest $50 Million in
Financing for Farmers
by 2020
PLANTING TREES

OPEN-SOURCE AGRONOMY

Provide 100 Million
Coffee Trees to Farmers
by 2025

Train 200,000 Coffee Farmers
by 2020

starbucks.com/social-impact

7

LEADING THE WAY IN GREENER RETAILStarbucks is building and operating stores with an aim to minimize ourenvironmental footprint with ambitious goals for 2020 and beyond.

GREENER STORESStarbucks is proud to have built more than 1,500
LEED (Leadership in Energy and Environmental
Design) certified stores in 20 countries including
all 50 U.S. states and Puerto Rico. We are thelargest builder of green stores in our sector andour stores account for 20 percent of the LEED certified retail projects globally. We’re developing
a new global store verification program todrive innovation, sustainability and efficiencies
throughout our store portfolio. The program will
include building standards for new and remodeled
stores, along with performance standards forall stores in energy and water efficiency, waste
reduction and partner engagement. With our goalof 10,000 greener retail stores by 2025, we hopeto truly leverage our scale for good and deliveron our ambition to become the world’s largest
green retailer.
®

®

GREENER CUPS & PACKAGING
Starbucks has a 30-year legacy of progress in oureffort to reduce the environmental impact of our
to-go cups and single-use packaging.

8

Since 1987 we have offered a discount to ourcustomers who bring in a reusable cup and wewere one of the early pioneers of the cup sleeveto eliminate double-cupping. We have been on
the forefront of new materials, becoming the first
to include post-consumer fiber in our hot cupsin 2006, and introducing a more recyclable cup
lid in 2017. We have also led the industry inadvocating for increased recycling infrastructure
to enable our cups to be recycled in morecommunities. While our cups can be recycled inmany communities today, we are working withlocal governments and stakeholders to increase
their acceptance in recycling systems.

a paper cup recycling launch in stores in The
Netherlands. Reusable cups are the greenest
option of all, so we are finding new ways topromote and incentivize the use of “for-here” wareand reusable cups. A pilot in London with a paper
cup charge has showed promise.

But we know we must do more. We are expanding
use of strawless lids and accelerating our efforts
to achieve a greener cup by 2022. We’re doubling
the recycled content in our cups and developinga global solution to give our cups a second life
through our new NextGen Cup Challenge. We also
are working with industry partners to double thenumber of stores and communities with access tocup recycling (over our 2016 baseline), including

As we embark on the next chapter of ourrenewable energy strategy, we continue to use
our scale to drive innovation across the renewableenergy sector. We are taking the next step withdirect investments in new geographically relevant
renewable energy projects. In North Carolina,
we have invested in a solar farm, which delivers
enough clean energy to power more than600 Starbucks stores in the Southern and

INVESTING IN GREEN POWER
We have invested in renewable energy since 2005,
steadily increasing our purchases of renewableenergy certificates until we achieved our goal of
obtaining 100 percent of the electricity powering
global company-operated stores from renewablesources in 2015.

®

Hacienda Alsacia, Costa Rica

Mid-Atlantic United States. And in Washington
State, we’re working with Puget Sound Energy to
power more than 100 Starbucks stores and ourroasting facility in Kent, with wind power from awind farm in nearby Olympia.
®

Starbucks joined with other companies in thecommitment to 100 percent renewable energy
with the RE100 in 2015, and we work to deepen
our impact and adhere to the RE100 Buyers’
Principles to improve our global reporting andpurchasing methodology. We are working tosource 100 percent renewable energy for
global store operations as well as our global
supply chain, headquarters and office locations.
We are committed to purchasing renewableenergy for each global market from projects
in the same grid region, and promoting local
renewable energy generation in all of the
global communities where we operate.
EMPOWERING
GREENER PARTNERS
Our partners are the heart and soul of ourcompany, and we are harnessing their passion
for sustainability to inspire and teach others.
Starbucks Greener Apron™ program is a voluntary
certification that helps partners learn about
environmental sustainability through three shortmodules created with Arizona State University’s
School of Sustainability. More than 6,000
partners have participated in the program since
its launch in 2016. Our goal is to engage 10,000
partners globally by 2020 through Partners for
Sustainability and the Starbucks Greener Apron™
program to create a network of sustainability
champions who advocate sustainability in storesand business every day.
®

®

9

NextGen Cup
Challenge
In partnership with Closed Loop Partners and
its Center for the Circular Economy, Starbucks
is committing $10 million to establish agroundbreaking consortium to launch the
NextGen Cup Challenge. This is the first step inthe development of a global end-to-end solutionthat would allow cups around the world to be
diverted from landfills and composted or given
a second life as another cup, napkin or even achair—anything that can use recycled material.
Through the NextGen Cup Challenge, theconsortium will award accelerator grants toentrepreneurs working on ideas that could leadto the development of more sustainable cup
solutions and invite industry participationand partnership on the way to identifying a
global solution.
Throughout development, the solution will be
open source so others can benefit and innovateon the path toward the development of recyclable
and compostable cups around the world.
“We want to make sure this technology isavailable to everyone because it’s the right thing
to do,” said Andy Corlett, director of packaging
R&D for Starbucks. “The idea of environmental
sustainability in packaging is not just a Starbucks
issue. It’s a global issue. Anything that gets us
closer to that goal is not something we want tokeep to ourselves.”

1010

GREENER RETAIL GOALSGREENER STORES

Build and Operate 10,000 Greener
Retail Stores Globally by 2025
GREENER CUP

Double the Recycled
Content, the Recyclability
and the Reusability of
Our Cup by 2022

GREENER APRONS

Empower 10,000
Partners Worldwide
to be Sustainability
Champions by 2020

GREENER POWER

Invest in 100% Renewable Energy toPower Operations Globally by 2020

starbucks.com/social-impact

11

CREATING OPPORTUNITIES THAT MATTERAs a leader in hiring great talent, Starbucks has and will always look to create
opportunities for our partners and customers in the communities we serve.

INNOVATINGPARTNER BENEFITS
Starbucks customizes benefits to meet partner
needs around the world. In the U.K., Starbucks
is the first private company to help pay rental
deposits by providing interest-free loans toemployees. Home Sweet Loan offers eligible
partners a loan of up to one month’s wages, paid
within four weeks of application, to be repaid overthe course of a year.
In China, eligible partners can earn a monthly
housing subsidy and help care for aging parents
with the Starbucks China Parent Care Program,which offers critical illness insurance for eligible
partners. In India, partners have a five-day work
schedule, down from the country’s customary
the six-day workweek. In Canada, the Starbucks
Work Placement Program is helping support youth
employment programs in Calgary, Toronto andVancouver, which combine in-class core life skills
and employability training with real-life on-thejob work placement experience. And in the U.K.,

12

Starbucks national apprenticeship program has
created more than 1,300 apprenticeships for ourpartners to grow their skills and careers.
MAKING COLLEGE A REALITY
In the United States, Starbucks helps partners
achieve a college degree through the Starbucks
College Achievement Plan, a groundbreaking effort
in partnership with Arizona State University. We
are also lowering barriers to college with efforts
such as Pathways to Admission, a program thatprovides partners the ability to work towardadmission tuition-free. More than 1,000 partners
have diplomas in hand and more than 9,000 are
working toward their degree.
HIRING VETERANS ANDMILITARY SPOUSES
Hiring and honoring veterans and military spouses
allows us all to benefit from their leadership,
experience and willingness to make a difference.
In 2013 Starbucks committed to hiring at least
10,000 veterans and military spouses by 2018.
In March 2017, we met our goal 18 months earlyand have extended it to 25,000 hires by 2025.
Our commitment goes beyond hiring. It includes
the ability for partners who are current membersof the U.S. Armed Forces or veterans to extend
their College Achievement Plan benefit to a
spouse or child.
WELCOMING REFUGEES
Refugees represent a population who seek achance to rebuild their lives and have a fresh
start in the face of extraordinarily difficult
circumstances. In keeping with our longstanding
history to create opportunity for all and to invest
in the people who are a part of the communities
where we do business, Starbucks is leading
a global effort during the next five years towelcome and employ 10,000 refugees by 2022,
including 2,500 refugees in Western Europe
and 1,000 refugees in Canada. In the U.S., ourefforts include a focus on hiring interpreters,
personnel and their families who served alongside
U.S. troops overseas to champion their talent,
experience and resilience.

SUSAN
five-year partner, military spouse & SCAP graduate
Alexandria , Virginia

EMPLOYINGOPPORTUNITY YOUTH
Starbucks is embracing and employing tensof thousands of youth, ages 16–24, who are
disconnected from work and school to help themachieve their dreams. Starbucks led the launch of
the 100,000 Opportunities Initiative with 50 other
employers in 2015. We have since hired 50,000
Opportunity Youth, representing one in five of
every partners hired, with a goal of hiring 100,000
in the U.S. by 2020. The coalition is now pushingtoward 1 million opportunities by 2021, working
together to create new recruiting and humanresources practices tailored to hiring, retaining
and advancing these young people. Starbucks
Canada also launched a new initiative in 2018
to hire 40,000 Opportunity Youth.
In several low- to medium-income U.S.
communities we now have Community storesthat are equipped with training centers where
we work with local nonprofits to provide
job-skills training to young people. Our new
National Mentoring Partnership, announced in2018 with LinkedIn, MENTOR, Big Brothers Big
Sisters, City Year and Year Up, will help close thegap for 10,000 youth who are awaiting a mentor.
Around the world, we offer training and support toyoung people in ways relevant to their needs andopportunities, such as Starbucks Opportunity Caféin the Middle East, which hosts youth training
workshops at local Starbucks stores. We arecommitted to the success and retention ofthese new partners at all levels.

MENG
Beijing, China®

13

A Dream Grows
in Brooklyn
The new Starbucks in Bedford-Stuyvesant(which everyone calls Bed-Stuy) is vibrant, andcommunity-minded, not unlike its new manager,
Juanita Vasquez. She was born in Brownsville, a
couple of miles from the new store, and raised in
East New York. There, her family lived right nextdoor to a church, where she served as a youth
leader until she was 21.
Bed-Stuy is the tenth Community store Starbucks
has opened as part of its initiative to invest in
at least 15 underserved communities in the U.S.
These stores create local jobs, partner with area
nonprofits to provide in-store job-skills training
for young people ages 16 to 24 who aren’tin school or working, and partner with local
women- and minority-owned contractors,
suppliers and vendors.
The store has a bustling schedule of community
events—job training, mentorship meetings, open
mic nights and Coffee with a Cop, where officers
from the local New York Police Department 103rd
precinct drop by to visit with neighbors.
“This is a safe haven,” said store manager
Alisha Wrencher. This is not something we
expected at all, to come into the community andbring people together like this. There’s a bigger
purpose here than just coffee.”

1414

JUANITAsix-year partner
Brooklyn, New YorkCREATING OPPORTUNITIES GOALSSTARBUCKS COLLEGE
ACHIEVEMENT PLAN

Graduate 25,000
Partners by 2025 andIncrease Accessibility
and Performance

VETERANS AND MILITARY SPOUSES

Hire and Honor 25,000 Veteransand Military Spouses by 2025

REFUGEESOPPORTUNITY YOUTH

Welcome and Employ
10,000 Refugees
Globally by 2022

Embrace and Employ
100,000 Hires by 2020

starbucks.com/social-impact

15

STRENGTHENING COMMUNITIESIN OUR GLOBAL NEIGHBORHOOD
Each Starbucks® store is a part of a community, and we’re committed
to strengthening neighborhoods wherever we do business.
DONATING
RE ADY-TO -E AT ME ALS
Starbucks partners have long advocated fora practical way to donate unsold food to thecommunities we serve. Through our partnershipwith Feeding America, we are working to rescue
100 percent of food available to donate from allof our U.S. company-owned stores by 2020. In
our first year of the program, we donated foodeach night from more than 1,700 stores in 17
U.S. markets from Seattle to New York, and havedonated more than 3 million meals to food banks.
We were also able to provide local food banks withfresh food, water, coffee and snacks
to communities facing natural disasters in the
U.S. Once the program rollout is complete, we
expect to increase our donations to 50 million
meals each year.
COMMUNITY SERVICE
We have always believed Starbucks can—and should—have a positive impact on thecommunities we serve. Community service reflects

16

our mission and values, who we are as a company
and one of the single biggest ways we individuallyand collectively come together to help fill a need.
In 2017 we launched our goal to achieve 100
percent participation by Starbucks stores acrossthe globe in community service each year by theend of 2020. This first year, 125,000 Starbucks
partners participated in more than 16,500
partner-led projects with a focus on sustainability,
hunger, youth, veterans and refugees. Projects
ranged from cleaning Amsterdam’s famous canals
to providing narration for the Cinema for the Blindin Beijing. In the U.S., partners participated in
more than 150 projects during Martin Luther King
Jr. Day of Service 2017.
®

THE STARBUCKS FOUNDATION
Established in 1997, The Starbucks Foundation
strengthens communities around the world byadvancing opportunities for youth, veterans,
refugees and coffee, tea, and cocoa farmers andtheir families; supporting communities affectedby disaster; and promoting civic engagement.

OPPORTUNITY FOR ALL
In 2017 The Starbucks Foundation worked with75 NGO partners to directly support more than
25,000 young people, veterans, military spouses
and refugees in developing job and leadershipskills and connecting them to employment.
SUPPORTING COFFEE, TEA
AND COCOA COMMUNITIES
Since 2005 The Starbucks Foundation has
awarded origin grants to support farming families
in coffee- and tea- growing communities totalingover $21 million, including projects with Eastern
Congo Initiative and Heifer International. On
National Coffee Day 2017, The Starbucks
Foundation announced a $500,000 grant toWorld Neighbors for a three-year project in coffee
communities in Guatemala’s Huehuetenango
region, to help improve access to water, promotewomen’s leadership through savings groups, andincrease food security. The Starbucks Foundation
will continue to invest in coffee-, tea- and cocoagrowing communities with a focus on empowering
women and families with a goal of reaching
250,000 women and families by 2025.

Huehuetenango, Guatemala

HELPING NEIGHBORS IN NEEDIn the past year we have seen hurricanes hit
Texas, Florida and the Caribbean, earthquake
devastation in Mexico City and wildfires in
California. Starbucks acted quickly to provide
support, working with nonprofit partners tomobilize immediate relief and longer-term
rebuilding efforts. Our customers also joined
us in responding to disaster-relief efforts,
resulting in more than $2 million in support
between The Starbucks Foundation, Starbucks
and customer contributions.
In addition The Starbucks Foundation has joined
local businesses, organizations, foundations,and individuals to help local nonprofits address
the crisis of unsheltered families and children in
Seattle and King County with emergency shelter
and more stable housing. In Europe, Starbucks
celebrated milestone anniversaries in Greece, The
Netherlands, Denmark and Austria with donations
to local charities that serve children and youth.
CRE ATING A CULTURE
OF INCLUSION
Consistent with our mission and values, we arecommitted to ensuring our partners, customers
and the communities we serve are treated withrespect and dignity. We are an equal opportunity
employer. In addition we consider all qualified
applicants for employment without regard
to the federally protected categories of race,
national origin, age, sex, religion and disability.
We are committed to nondiscrimination policies
regarding sexual orientation, marital status,
veteran status, and gender identity or expression
in decisions regarding hiring, transfer, promotion,compensation, eligibility for benefits andtermination.

Women make up one-third of our board of
directors, and we have strong representationof both women and minorities throughout thecompany. Our aspiration is for our leaders toreflect the diversity of our overall workforce, so
in 2015, we committed to a 50 percent increasein the representation of women and minorities
among our top leaders (senior vice presidents
and above) by 2020.
PROMOTING PAY EQUIT Y
We are dedicated to achieving and maintaining
100 percent pay equity for women and men andpeople of all races performing similar work.
In 2017, women and men who perform similar
work in the United States were paid within
99.7 percent of each other. In March 2018, weannounced that we reached 100 percent pay
equity in the U.S., with a goal of achieving andmaintaining 100 percent gender pay equity for all
partners in company-operated markets. In supportof that goal, we are committed to the principlesof equal footing, transparency and accountability
in our approach to compensation. In the U.S.,
our pay equity best practices include not asking
job candidates about prior salary, paying newly
promoted partners what they deserve for their
new role rather than a salary that is tied to what
they made before, disclosing pay ranges to job
candidates on request, conducting comprehensivecompensation analyses of all rewards
recommendations with the aim of identifying
and addressing any unexplained differences, andpublishing our pay equity progress annually.

Earthquake Relief
Mexico City, Mexico

EMPOWERING HUMANITY
Variation and adaptability are expressionsof humanity, and we look at diversity in a
multitude of ways. Our nine partner networks

17

(employee resource groups) highlight an areaof diversity with a focus on development ofmembers, community engagement and providing
insights to our organization. Our commitment to
LGBTQ inclusion was recognized with a score of
100 on the Human Rights Campaign’s Corporate
Equality Index from 2015 through 2018. We areproud to have tohave participated in a 2017 White House panel
on disability employment and to have achieved a
100 percent score on the Disability Equality
Index from 2015 through 2017. In our effort tobecome the world’s most welcoming environment
for people with disabilities, their families andtheir communities, we launched our Accessibility
Office in 2017.

MLK Jr. Day of Service, NYC
Laine’s Bake Shop, Chicago

We are committed to building an infrastructurethat enables universal design in technology,
communications, physical environments andservices. In 2017, our first Starbucks signing store
in Malaysia celebrated its one-year anniversary,and the store has become a model for our othermarkets. We invite our Deaf retail partners aroundthe world to wear green aprons with “Starbucks”
embroidered in sign language as a source of
cultural pride and a helpful cue for customers.
SUPPLY CHAIN DIVERSIT Y
AND INCLUSIONThe Starbucks Supplier Diversity and Inclusion
Program strengthens our supply chain and serves
as a critical component of our commitment
to ethically source our products. Our program
focuses on developing business relationships
with companies that are at least 51 percent
owned and operated by a minority, woman,
LGBTQ, veteran, person with a disability,

18

or small businesses classified as HUB Zoneor 8(a). By actively seeking diverse suppliers,
we support our business and invest in thecommunities where we do business, like Laine’s
Bake Shop in South Chicago and Midnite
Confection’s Cupcakery in Baltimore. These
relationships help us deliver high-quality,
innovative products and services across all
business channels, while driving value andeconomic development.
Since reporting our purchases with diverse
suppliers in 2000, we have spent a cumulative$6 billion with diverse suppliers. We have also
increased from a yearly spend of $38 million tomore than $600 million annually. This accounts
for approximately nine percent of our total spend
in the U.S. and Canada. We have set yearover-year growth targets with an ultimate goalof achieving 15 percent of spend with diverse
suppliers.
As we look forward, we aim to increase imapct
by working closely with all of our suppliers toencourage further support of diverse suppliers,
thus expanding the first- and second-tier suppliersaligning with the program.
This comprehensive approach to supplier diversity
ensures our program and goals are part of thefoundation of our strategic sourcing process. In
addition to setting purchasing targets reflected
throughout our supply chain goals, our sourcing
team proactively supports diverse supplierdevelopment. Beyond simply identifying strong
candidates, we actively coach and develop
suppliers who meet our diversity standards.

STRENGTHENING COMMUNITIES GOALSFOODSHARE

Rescue 100% of Food Available
to Donate by 2020 in U.S.
Company-Owned Stores

COMMUNITY SERVICE

Have 100% of Our Stores Worldwide
Participating in Community Service
Annually by 2020

starbucks.com/social-impact

19

Liberty’s Kitchen
In 2006 New Orleans was still physicallydestroyed after Hurricane Katrina, but its spirit
was very much alive. “People were still going
to work, helping their neighbors and trying toapproach each day with hope,” said Starbucks
district manager Troy James.
The optimistic sense of service that inspired atroubled city also launched a nonprofit called
Liberty’s Kitchen—an organization designed togive unemployed youth leadership and life skills,
and practical foodservice job training.
Eleven years later, The Starbucks Foundation
awarded Liberty’s Kitchen the 2017 Opportunity
for All grant. This, its fourth grant from The
Starbucks Foundation, is $50,000 to fund staff
development and training, uniforms for students,
activities for alumni and special events topromote the organization.
Dennis Bagneris, New Orleans native andLiberty’s Kitchen’s director of Youth Successsaid, “We want to change the face of what itmeans to be workforce development. We want
to work against disparities, challenge racialinequities and promote new types of learning toprovide the best outcome for young people.”Those who finish the nearly one-year program
receive a certificate of completion for learninga variety of cooking methods, knife and otherculinary skills and the importance of personal
responsibility. Today 92 percent of the program’s
graduates find work.

20

GOALS SUMMARY

21

AREA OF IMPACT

GOAL

F Y17

PROGRESS COMMENTARYSOURCING COMMITMENT

100% ethically sourced coffee

99%

Ethically sourced 99% of coffee purchases verified
under C.A.F.E. Practices

SOURCING COMMITMENT

100% ethically sourced tea by 2020

72%

Continuing our work with the Ethical Tea Partnershipto reach 100% ethically sourced tea

PLANTING TREES

Provide 100 million coffee trees
to farmers by 2025

21 million trees
distributed
since 2015

Methodology now reflects trees distributed to farmers
in Mexico, Guatemala and El Salvador

GLOBALFARMER FUND

Invest $50 million in farmer loans by 2020

$22.3 million

Announced $2 million farmer loan commitment from Starbucks
in partnership with the Inter-American Development Bank tosupport primarily 2,000 women coffee growers in Colombia

OPEN-SOURCEAGRONOMY

Train 200,000 coffee farmers by 2020

24,302Trained nearly 25,000 farmers in 2017 through our nine Farmer
Support Centers in coffee-producing countries around the world

GREENER CUP
AND PACKAGING

Double the recycled content, recyclability
and reusability of our cup by 2022

Cups contain 10%
post-consumer fiber(PCF)

GREENER STORES

Build and operate 10,000 greener storesglobally by 2025

1,400

Starbucks now has 1,400 LEED -certified stores in 16 countries,
including all 50 U.S. states and Puerto Rico

GREENER POWER

Invest in 100% renewable energy to power
operations globally by 2020

62%

We are striving to purchase local renewable energy in regions where
we have operations. We have purchased Renewable Energy Certificates(RECs) to cover 62% of our electricity usage globally

GREENER APRONS

Empower 10,000 partners worldwide to besustainability champions by 2020

5,139

More than 5,000 partners enrolled worldwide. Expanded theStarbucks Greener Apron™ sustainability training program to
Canada and the U.K. in 2017.

VETERANS ANDMILITARY SPOUSES

Hire and honor 25,000 veterans andmilitary spouses by 2025

12,876Opened our 40th Military Family store and donated more than
2.5 million cups of coffee to service members overseas in 2017STARBUCKS COLLEGE
ACHIEVEMENT PLAN

Graduate 25,000 partners by 2025 andincrease accessibility and performance

OPPORTUNITY YOUTH

Embrace and employ 100,000
Opportunity Youth by 2020

REFUGEES

Welcome and employ 10,000 refugees
globally by 2022–

FOODSHARE

Rescue 100% of food available to donate
by 2020 in U.S. company-owned stores

3.5 million pounds

COMMUNITY SERVICE

Have 100% of our stores worldwide participate
in community service annually by 2020

Tested more than 12 technologies for cup liners, with recycled content
tests under way. Paper cups currently are recyclable in four major U.S.
markets. Piloted an increased reusable cup discount in the U.K. market.
®

®

939 graduates and
9,000 partners
enrolled

By March 2018, more than 1,282 partners have graduated,and over 10,000 partners are currently working toward
their degree through Arizona State University

46,737 hired

63 partnerships in 10 countries directly supported more than
20,000 young people in developing job and leadership skills
and connecting them to employment–

Currently developing global methodology for refugee partner
self-identification. Launched partnerships with global organizations.
Donated 5 million meals, equating to 4 million pounds of foodfrom more than 2,700 storesRefining tracking for store-level participation by market.
Partners led 16,744 projects globally including 126,612 partners
in 40 countries

ABOUT THISREPORT
SCOPE
Our report for fiscal 2017 focuses on our
performance against the goals we set in four key
areas: sustainable coffee, greener retail, creating
opportunities and strengthening communities.
We’ve also included links to information andresources publicly available at starbucks.com
regarding our financial, corporate governance,
workplace and diversity policies, and performance,
because these commitments are directly tied toour business. In developing this report, we’ve
covered topics and issues that are important
to Starbucks and our stakeholders based on
year-round engagement with and feedback fromadvocates and investors, and via easily accessible
customer and Starbucks partner tools such as
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 conducted by the strategic advisory firm
SustainAbility and Edelman public relations,along with direct conversations with the manyorganizations we work with. Ensuring both internaland external engagement is a critical componentof how we do business—we help ensure ourprograms, policies and the content of this report
are material to our business and stakeholders.

22

BOUNDARIESAs with previous global responsibility reports,
this year’s report highlights the work we are doingin ethical sourcing, community investments andenvironmental stewardship. These areas are
critical to our business and are also where weknow we can and do have the greatest impact.
Starbucks is committed to the United Nations
Sustainable Development Goals, and uses thesegoals as a lens for our social impact programs
and collaborations with others. Based on our
stakeholder-engagement efforts, we also believethese areas are important to our customers,
our partners, non-governmental organizations(NGOs) and investors. In addition issues related
to health and wellness and workplace policies
are vital elements of our business and of
considerable interest to key stakeholders.
While our commitments are global, our reporting—with the exception of our coffee purchases—
is focused largely on Starbucks U.S. and Canada
company-operated retail stores and global supply
chain operations. These operations, together withour coffee purchases, currently represent themost significant segment of Starbucks social,environmental and economic impacts based on
the percentage of revenue and the number ofstores covered. Provided information pertains
to the coffee sold and served by all global
Starbucks brands and company-operated or
licensed retail stores.
Starbucks uses the CRedit360 program to
manage our sustainability data for the purposesof reporting on and tracking key performanceindicators, providing ongoing visibility into ouroperations and impacts enterprise-wide, as well as
for approval and audit purposes.

We continue to work to validate and improve our
global reporting efforts, so we can consistently andaccurately report on our performance.
REPORTING YEAR
Starbucks fiscal year 2017 (October 3, 2016–
October 1, 2017), unless otherwise noted.
CURRENCY
All references to currency are in U.S. dollars,
unless otherwise noted.
PREVIOUS REPORTS
Starbucks has produced an annual report since2001. Previous years’ global social responsibility
reports are available on our website.
INFORMATION INTEGRIT Y
Starbucks management is responsible for the
preparation and integrity of the information
reported for fiscal 2017. Through a system ofinternal controls, including a comprehensive
verification process involving internal subjectmatter experts, we believe this information
accurately represents our global responsibility
activities and performance results forthe fiscal year 2017. External verification isprovidedby Moss Adams LLP.
All infographics related to our goal performanceare visual representations of progress and not
to exact scale.

FORWARD-LOOKING
STATEMENTS
Our reporting on global responsibility for fiscal
2017 includes forward-looking statements about
the company’s business and its future businessplans, initiatives, goals and objectives. These
forward-looking statements are based on currently
available operating, financial and competitive
information and are subject to a number ofsignificant risks and uncertainties. Actual future
results may differ materially depending on avariety of factors including, but not limited to,coffee, dairy and other raw material prices andavailability; successful execution of the company’s
blueprint for growth and other strategies; cost
reduction and other initiatives; fluctuations
in U.S. and international economies andcurrencies; the impact of competition; the effectof legal proceedings; and other risks detailed
in the company’s filings with the Securities
and Exchange Commission, including the “Risk
Factors” section of Starbucks Annual Report on
Form 10-K for the fiscal year ended October 1,
2017. The company assumes no obligation to
update any of these forward-looking statements.

THE CLIMATE GROUP“Starbucks is demonstrating thecompelling business case forrenewable electricity. Their dynamic,
collaborative and innovative approachis setting an example to businesses andutilities across America, while showing
millions of customers that Starbucks isserious about slowing climate change.”—Sam Kimmins, head of RE100

PIKE MARKET
FOOD BANK“The FoodShare program has had a huge
impact on Pike Market Food Bank. We
serve many seniors and people without
the ability to cook for themselves. These
products are some of the healthiest andfreshest meals our clients might geteach week. I can’t possibly convey how
grateful I am for this well-organizedpartnership between Food Lifeline
and Starbucks.”—Lilly Glover, Food Bank manager

FOODSERVICE PACKAGING
INSTITUTECONSERVATIONINTERNATIONAL“Starbucks is a leader in the ongoingwork to make a recyclable paper cup
a reality. However, this takes a great
deal of time and effort, and certainly
not something that can be done alone
or by simply designing a new cup.
The truth is no cup is recyclable until
it is widely accepted by communities,
recycling facilities and paper mills.
We have been fortunate to have
Starbucks engagement and partnershipin working on this challenge, and welook forward to continued collaboration
toward a truly recyclable cup.”“Starbucks deserves a massive amountof credit for driving innovation insustainable coffee. In two decades ofcollaboration, they have consistently
adopted new approaches to increasetransparency and effectiveness. The
promise of connecting coffee farmers tocoffee drinkers is an extraordinary leapin transparency and accountability,
and it speaks volumes about Starbucks
commitment to creating a product thatis good for people and for the planet.”—Lynn M. Dyer, president—Dr. M. Sanjayan, executive vice president
and senior scientist

To inspire and nurture the human spirit—
one person, one cup and one neighborhood at a time.
It’s our role and responsibility to stay true to our mission and values.
To act with purpose and conviction, every day, in every community we serve.

We invite you to share your ideas with us at
GLOBALSOCIALIMPACT@STARBUCKS.COM© 2018 Starbucks Coffee Company. All rights reserved. SBX18-383984

OUR MISSION