Starbucks Global Responsibility Report

Goals & Progress 2010

Year in Review: Fiscal 2010
At Starbucks, we have always aspired to be known as much for our commitment
to social responsibility as we are for the quality of our coffee.

This is the 10th year we’re reporting on the
progress of our responsible business practices.
When we first began, with our 2001 report,
we joined a small but growing number ofcompanies assessing their corporate citizenshipand sharing the results, hoping to leadby example. In doing so, we declared our
accountability to a broad range of stakeholders— our partners (employees), customers,
shareholders, suppliers and neighbors.
Back then, Starbucks had just over 4,700 storesin 23 countries and nascent relationships with
Conservation International and Fairtrade,among others. We had just introduced our first
set of coffee-sourcing guidelines — among thefirst of its kind for the coffee industry, and an
early iteration of our Coffee and Farmer Equity
Practices. At that time we were just beginningto build our community service programs
and starting to explore ways to minimize theenvironmental impact of our stores.
Since our first report, we have reached anumber of important milestones. In 2008 we
made a bold move with Starbucks™ Shared
Planet™ by setting goals in the areas of ourbusiness where we could have the greatest
impact: ethical sourcing, environmental
stewardship and community involvement.
More than ever before, we believe that ourbusiness performance is inextricably linked toour progress against these goals.

1

Today Starbucks has more than 17,000 storesin over 50 countries around the world. Ourfamily of brands connects with customers not
only within our stores, but at home, on the go
and in the digital world. As we have grown,
we have embraced new sets of challenges
and opportunities. We have also learned toleverage this growth to drive positive change incommunities around the world.
The results we share in this report demonstratethat our efforts have taken root across thecompany. We have a comprehensive approachto ethical coffee sourcing and farmer support,with more than 84 percent of our coffee
meeting our strict standards for ethicalsourcing. We are one of the world’s largest
purchasers of Fairtrade certified coffee. We
have made significant inroads in our effort tofind recycling solutions for our paper cups, andwe are working to inspire youth and partners inour communities as never before.

Each year our stakeholders’ knowledge
and expectations increase in regard to our
responsible business practices. We expect
more of ourselves as well, and will continue tointegrate our values into our company strategy,
business practices and operations. We’ll
continue to set clear goals, and to measure ourprogress and the impact of achieving thosegoals. Although we are proud of how far wehave come since our first report, we know there
is still a long way to go. We welcome yourinput and ideas as we continue on this journey.

Regards,
Vivek Varma
executive vice president, Public Affairs
Ben Packard
vice president, Global Responsibility

We invite you to explore this report to get asnapshot of our performance in 2010 against
our Starbucks™ Shared Planet™ goals. Regular
updates on our broader responsible businesspractices, policies and partnerships are alsoavailable at starbucks.com/responsibility.

Report is based on fiscal year (October through September) performance unless otherwise indicated.

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Starbucks Global Responsibility Report

Goals & Progress 2010

Message fromHoward Schultz
chairman, president and chief executive officer
At Starbucks, the values that guide every decision we make can be found in our mission
statement: to inspire and nurture the human spirit – one person, one cup and one neighborhood
at a time. For 40 years, we have lived these values in the ways we ethically source our coffee
beans and work to improve the lives of the people who grow them; in how we participate in theneighborhoods where we do business, operate our stores and care for the environment.
I have always felt that we must balance our responsibility to create value for shareholders witha social conscience. Our fiscal 2010 global responsibility report reflects our commitment totransparency in these efforts and our intent is to openly share the challenges we encounter as wellas the progress we are making in our efforts to live up to our responsibilities as a global corporate
citizen and a neighbor next-door.
Embracing this responsibility, we are celebrating Starbucks 40th anniversary by deepening ourhands-on commitment to community service – a tradition that has been integral to our mission
for many years. Throughout the spring of 2011, our partners (employees) and customers at
Starbucks stores throughout the world will be volunteering thousands of hours to benefit local
neighborhoods, from Shanghai to Seattle.
I have always believed that companies have a shared responsibility to give back to the communities
they touch. Today, perhaps more than ever, people are looking to the business community tohelp address many of the complex issues facing our world. At Starbucks, we acknowledge that
responsibility, and will once again set a new standard of corporate responsibility.
Thanks to the efforts of Starbucks partners we have made significant strides these past few years,
from exploring new ways to recycle used paper cups to continuing to reduce the environmental
impact of operating our company-owned stores. And every day, the words of our mission arebrought to life in small, often uncelebrated ways by Starbucks partners, customers, farmers,
suppliers and neighbors. Although we are proud of all that we have accomplished, we recognizethat there is so much more to do. I promise that we will continue to conduct our business in waysthat will earn your admiration and trust.
Warm regards,

Howard Schultz

2Starbucks Global Responsibility Report

Goals & Progress 2010

Environmental StewardshipAs a company with a deep
heritage and a passion for coffee,
Starbucks has been focused on
the long-term sustainability ofcoffee-growing communities.
Through innovative programswith an emphasis on continuous
improvement, we are taking action
to address our concern aboutclimate change and the impact
it will have on the long-term
supply of our coffee. We know
our customers are concerned
about this issue as well. To
help maintain our high-quality
standards and preserve the planet
for future generations, we’retaking bold actions to reduce ourenvironmental impact.

In 2010 we collaborated with representatives
from across our value chain to address thechallenges we face together and advance a
number of meaningful initiatives.
At the store level, green building and energy
and water conservation strategies continue tobe key priorities with potential to significantly
minimize our environmental footprint.
Recycling is also top of mind for us and ourcustomers. In 2010 we reached some significant
new milestones in our journey to make ourcups and other packaging more broadly
recyclable. As we’ve learned more, we’ve beenable to expand our focus from materials anddesign to the improvement of local recycling
infrastructures.

Looking beyond our stores, in 2010 we
expanded our efforts to protect carbonabsorbing tropical forests in a number ofcoffee-growing communities. We also
continued our work as a founding memberof a coalition called Business for Innovative
Climate and Energy Policy (BICEP), joining
with other responsible companies to advocate
for stronger climate change and clean energy
policy.
We invite you to learn more about ourenvironmental efforts.

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Starbucks Global Responsibility Report

Goals & Progress 2010

Community

Starbucks is committed to helping
support thriving neighborhoods
wherever we do business. Being
an integral part of neighborhoods
is not just the right thing to do forthe community, it’s also good forour business.

We know we can accomplish more together
than we can alone. We bring together ourpartners (employees) and customers in theircommunities to make meaningful impact. One
way we do this is by inviting customers tojoin us in local community service projects.
This enables us to reach out to customers andcommunities beyond the walls of our stores
while helping our partners build professional
and personal skills.

To amplify our community efforts, we
collaborate with like-minded nonprofit
organizations, businesses, civic leaders andindividuals. We also engage millions of people
in dialogue about local and global issues in oursocial media community My Starbucks Idea.
We invite you to learn more about ourcommunity efforts, the programs we support,
and our recent milestones.

Starbucks is dedicated to empowering young
people to be catalysts for change in theirlocal communities. Through our Youth Action
Grants, we invest in young people to inspirethem to create new and innovative solutions
to address community issues while gaining
valuable leadership skills.

4

Starbucks Global Responsibility Report

Goals & Progress 2010

Ethical Sourcing

Since opening our first store in
Seattle’s Pike Place Market in1971, we’ve remained committed
to sourcing and roasting theworld’s finest coffee. As wehave grown and evolved, ourcommitment to promoting sociallyand environmentally responsible
growing practices has delivered
industry-leading results. We havefound that we’re able to serve agreat cup of coffee while helping
to improve the lives of farmers
and protect the planet.

Over the years Starbucks has received input
from a broad range of stakeholders thathas helped us create a holistic approachto responsibly sourcing our coffee. We arecommitted to continuously improving economictransparency, promoting responsible labor
practices, reducing environmental impacts
and ensuring the long-term supply of ourhigh-quality coffee. While we know there ismuch more to do, we have already madea measurable impact in coffee-growing
communities where we do business.
Our approach is grounded in Coffee andFarmer Equity (C.A.F.E.) Practices, ourcomprehensive set of social, economic,
environmental and quality guidelines. Farms
and mills are evaluated with approximately
200 performance indicators by third-party
verification organizations, overseen by
Scientific Certification Systems.
The implementation of C.A.F.E. Practices,which we developed in collaboration with
Conservation International (CI) more thanseven years ago, has made significant social,environmental and economic impacts on the
more than one million workers employed byparticipating farms. A recent analysis by CI of
C.A.F.E. Practices found that among the morethan 100,000 participating farms: 99 percent ofschool-age children on small farms were able toattend school, 99 percent have not converted
any natural forest habitat to coffee products
since 2004, and the majority of workers earnhigher than the legal minimum wage for theircountry.
We complement purchases of C.A.F.E.
Practices-verified coffee with third-party
certified coffees grown and produced in waysthat contribute to environmental preservation
and/or sound production standards, including
Fairtrade certified coffee and certified organic
coffee.
Another component of our approach is
helping farmers and cooperatives advancetheir businesses by improving their access tocredit. We continue our capital commitment
to the farmer loans program and we exploredopportunities to facilitate farmer access toforest carbon markets in our pilot projects in
Chiapas, Mexico, and Sumatra, Indonesia.
We’ve learned a great deal on this journey,
and we’re applying the knowledge we’ve
gained through our work with coffee farmers
to other products, such as tea, cocoa and the
manufactured products we sell in our stores.

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Starbucks Global Responsibility Report

Goals & Progress 2010

Coffee Purchasing& Farmer Support
We know our success as a company
is linked to the success of thethousands of farmers who grow ourcoffee. That’s why we’re working
to ensure a long-term supply ofhigh-quality coffee through our
responsible coffee purchasing
practices and by investing infarmers and their communities.

Coffee Purchasing
Starbucks is committed to buying and serving
high-quality coffee that is responsibly grownand ethically traded. We have set a goal that by2015, all of our coffee will be third-party verified
or certified, either through Coffee and Farmer
Equity (C.A.F.E.) Practices, Fairtrade, oranother third-party certified or verified program.
The cornerstone of our approach is C.A.F.E.
Practices, a comprehensive set of social,economic, environmental and quality
guidelines developed in collaboration with
Conservation International (CI). We continued
to make progress this year, moving from 81
percent in 2009 to 84 percent of our total
green coffee purchases from C.A.F.E. Practicesverified sources (226 million of 269 million total
pounds purchased).
Working toward our 2015 goal, we continue
to purchase third-party certified and verified
coffees grown in ways that contribute toenvironmental protection and/or economic
sustainability. We have offered Fairtrade coffee
since 2000, and in 2010 7.9 percent of ourcoffee purchases were Fairtrade certified,making us one of the largest purchasers ofFairtrade certified coffee in the world. We alsoreached a significant milestone in March 2010,
when we switched 100 percent of the espresso
coffee sold in our stores in UK and Europe
to Fairtrade certified. We also purchased 3.6
percent (or 9.7 million pounds) of certified
organic coffee in 2010. By purchasing thesecertified coffees, we hope to not only meet our

GOALS

PROGRESS

Ensure 100% of ourcoffee is ethicallysourced by 201584% of our coffee was
ethically sourced under
C.A.F.E. Practices in 2010,
up from 81% in 2009.

Total coffee purchases(Millions)

Total C.A.F.E. Practices
purchases(Millions)

ON TRACKWe define ethically sourced as coffee that isthird-party verified or certified, either throughC.A.F.E. Practices, Fairtrade or anotherexternally audited system. Total coffee
purchases in 2010 are lower than in the previous
year due to carryover of inventory from 2009.

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

385

367

269

(lb)

174

166

122

(kg)

295

299

226

(lb)

134

136

103

(kg)

77%

81%

84%

100%

2009

2010

2015

2008

Includes green coffee purchases for all Starbucks brands$20 Million

We made $14.6 million infarmer loan
commitments* in 2010.

$12.5 Million$14.5 Million $14.6 Million*

ON TRACK

$
2008

2009

2010

2015

Commitment is defined as being made either by public declaration of intent or signed contract*2010 commitment reflects reinvestment in interest income

Improve farmers’ accessto carbon markets,
helping them generate
additional income while
protecting theenvironment

Chiapas, Mexico
We expanded pilot
programs in coffee-growing
communities in Chiapas,
Mexico and Sumatra,Indonesia through ourpartnership with
Conservation International.
More than 5,000 tons ofcarbon credits have beensold to date.

Sumatra, Indonesia

ON TRACKGOALSneeds but also to help
PROGRESS
customers’
protect theFarmer Support
environment and farmers’ livelihoods in coffeetens
growing
regions.
Our reported service hoursThe majority of our coffee is sourced from
1 Million
Mobilize
our partners
increased by 2.8% in 2010.
Hours**of thousands of family farms with less than30
(employees) andAn customers
important componentof our approachisto contribute
NEEDS IMPROVEMENT
acres (roughly
hectares)191,224
of land, and we’re
245,974 12186,011
Hours
1 millionhours
of aims to pay equitable
Hours* to helping
Hours*
a pricing
model
that
steadfastly
committed
small-scalecommunity
serviceper while fostering pricepricesfor premium
coffeefarmers thrive now and in the future.
year by 2015
stability and mutually beneficial relationships
2008
2009
Our farmer
supportservices2010
continue to 2015
with farmers. Starbucks paid an average price*2009 and 2010 total hours do not reflect Youth Action Grant activities**Global representation.
enhance responsible practices in coffee-growingof $1.56 per pound for our premium green
regions around the world. In addition to our(unroasted) coffee in 2010.
53,763We reached our goal in
Engage a total ofStarbucks Farmer Support Centers serving
2010 – engaging over
50,00050,000 young people
53,000 young people in Central America and East Africa, we plan tocommunity activities in a
to innovate and takesingle year.
open our first Asia Farmer Support Center inaction in their
the Yunnan provinceof China in 2012. These
communities by 2015
ACHIEVED
20,868centers bring Starbucks agronomists and quality
experts directly to coffee farmers to help them
implement more2009 responsible
2010growing practices,2015
improve the quality and size of their harvests,
and ultimately earn better prices.
GOALS

PROGRESS

6

Starbucks Global Responsibility Report

Goals & Progress 2010

Coffee Purchasing& Farmer Support
We’ve also been reaching out to smallscale farmers through our Small Farmer
Sustainability Initiative (SFSI). The effort,
launched in 2009, is a three-year pilot programin partnership with Fair Trade USA and
Fairtrade International that leverages ourshared commitment to support small-scale
farmers. Through the SFSI, Fairtrade farmer
cooperatives are eligible to apply for loans
from the funds supported by Starbucks to help
improve livelihoods and promote environmental
stewardship and economic stability in thecoffee industry.

In 2010 our loan commitments to Root Capital,
Verde Ventures and the Calvert Foundation
reached a total of $14.6 million. In 2010 alone
this support helped nearly 56,000 farmers whogrow our coffee in ten countries. By investing inprograms that provide access to credit, we’re
helping farmers manage risk and strengthen
their businesses.

Forest Carbon Programs
We are concerned about the potential impactsof climate change on coffee-growing regions.
To help address this issue, the newest phase of
our partnership with CI works with 33 coffeeproducing communities in Chiapas, Mexico,and Sumatra, Indonesia, to improve coffee
production, conserve and restore natural
habitat, and explore opportunities to facilitate
farmer access to forest carbon markets. Eachproject illustrates different approaches toaddressing climate challenges facing coffee
producers and explores the potential of the
carbon market to benefit both livelihoods andconservation efforts. We are optimistic that theresults of this phase of our pilot will promote a
program we can expand to our other coffeegrowing communities.

7

*2010 commitment reflects reinvestment in interest income

Starbucks Global Responsibility Report

Goals & Progress 2010

Improve farmers’ accessto carbon markets,
helping them generate
additional income while
protecting theenvironment

Chiapas, Mexico
We expanded pilot
programs in coffee-growing
communities in Chiapas,
Mexico and Sumatra,Indonesia through ourpartnership with
Conservation International.
More than 5,000 tons ofcarbon credits have beensold to date.

Sumatra, Indonesia

Community Involvement
ON TRACK

Being involved in the community
has always been a part of ourethos. We’re galvanizing local
communities and motivating ourpartners (employees), customers
and young people to join forces
and become involved in initiatives
that make a meaningful impact.

Community Service
In 2010, Starbucks partners and customers
around the world contributed more than
191,000 hours of community service, a nearly
three percent increase from 2009. One way
we were able to connect partners with needed
work was through HandsOn Network in the
United States and China. While we have work
to do to reach our goal of one million service
hours per year by 2015, we have a renewed
commitment and have begun to implement
new tools, including a new partner-facing
community service website, to track hours
and engagement.
In 2011, we will celebrate our 40th anniversary
with a global month of community service.
We are committing to motivating partners,
customers and young people from around theworld throughout the month of April to takeaction to make a lasting, positive difference inthe neighborhoods where they live and work.

Youth Engagement
We are dedicated to encouraging young
people to drive positive change in theircommunities. We hope to inspire innovation sothey create positive solutions to real local needs
they see in their neighborhoods. We set a goalin 2008 to engage 50,000 young people toinnovate and take action in their communities
by 2015. We are proud that we reached thatgoal in 2010. Through Youth Action Grants, wehave helped support the engagement of morethan 74,000 young people since 2008, who

GOALS

PROGRESS

Mobilize our partners(employees) andcustomers to contribute
1 million hours ofcommunity service per
year by 2015

Our reported service hours
increased by 2.8% in 2010.
NEEDS IMPROVEMENT

1 Million
Hours**

245,974
Hours

186,011

191,224

2009

2010

Hours*

2008

Hours*

2015*2009 and 2010 total hours do not reflect Youth Action Grant activities**Global representation.

Engage a total of
50,000 young people
to innovate and takeaction in theircommunities by 2015

53,763We reached our goal in2010 – engaging over
53,000 young people incommunity activities in asingle year.
ACHIEVED

50,00020,868

2009

GOALS

2010

2015

PROGRESSin turn mobilized more than 950,000 hours of
Givingcommunity service in their local communities.
In 2010, we tested the
In 2010, Starbucks Corporation and theDevelop
recyclability of our cups in a
Designcomprehensive
Youth
Action Grants supported young
New Yorkpeople
pilot and have Starbucks Foundation gave a total of $22.4
gained a better
recyclingsolutionsforin organizations such as the Stadium
Schoolmillion: $17 million in corporate giving andCollection
understanding of local
our paper and plastic
recyclingprocesses
andYouth Dreamers in Baltimore, where middle$5.4 million from the Starbucks Foundation.
specific actions we’ll take tocups by 2012and high school students support
one recycling
anotherincrease
Corporate giving included $10.3 million in cash
opportunities.
through their own community center andand $6.7 million in in-kind contributions toward
ON TRACKInfrastructurethe
the Children’s Environmental Heritage
community-building programs – including
Foundation in Kuala Lumpur, Malaysia, where
Global Fund through our partnership withyoung people from low-income In
communities
other efforts.
2010, we continued to (RED)™ and100%
Implement
support
Locationsarefront-of-store
educated about
the importanceoflocal market
recycling
testing and
The Starbucks Foundation, a separate 501(c)implementation toenvironmental
stewardship.
in ouraccelerate futurecompany-owned
front-of-store recycling. (3) charitable organization that receives theby 2015 to learn how Starbucks YouthWestoresare beginningmajority of its funding from Starbucks Coffee
5%
NEEDS IMPROVEMENT
Action Grants impact the young people and the
Locations with
Company and private donations, made more
front-of-store
communities they serve. In 2010, we amplified
than 100 grants to nonprofit organizations recycling
in
U.S. and Canada company-owned stores
our efforts in urban neighborhoods with
2010, including $1.6 million for Starbucks
Youthinspiring changemakers Blair Taylor of the Los
Action Grants and $1 million to the American
Serverware or tumblers used:
Although we served 6.4
ServeUrban
25 percent
of and Geoffrey
Angeles
LeagueCanadaearthquake relief effort.
million more beverages in Red Cross for the Haiti
26.3 Million Times
beverages made inwith the Harlem Children’s Zone.reusable
Theircups
work
in 2010 than
21.9 Million Times
32.6 Million Times
our stores in reusable
2009, we will need
1.8%
25%
We invite you
to learn1.5%
more about
our
1.3%
inspiresusandothers
to
do
more,
and
in
2011
cups by 2015
considerable innovation andwe will collaborate with our nonprofit
customerpartners
engagement to efforts to support and enrich thereach our 2015 goal.
communities where we do business at
to make meaningful investments.
starbucks.com/responsibility.
2008
2009
2010
2015
NEEDS IMPROVEMENT
**

*

***

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores*** Global company-owned storesGOALS

PROGRESS

Reduce energy
consumption by 25% in
our company-owned
stores by 2010

Our electricity use
decreased by 1.6% incompany-owned storesin 2010.
DID NOT ACHIEVE

6.8 KWH
6.69 KWH

1.7% Decrease

6.58 KWH

1.6% Decrease

2008
2009
2010

8

*2009 and 2010 total hours do not reflect Youth Action Grant activities**Global representation.

Starbucks Global Responsibility Report

Engage a total of
50,000 young people
to innovate and takeaction in theircommunities by 2015

Goals & Progress 2010

53,763We reached our goal in2010 – engaging over
53,000 young people incommunity activities in asingle year.

50,000Recycling & Reusable Cups
ACHIEVED

20,868

2009

Over the years, our white cup has
become an iconic and integral partof the coffeehouse experience.
At the same time, it has become
a concern among some of ourcustomers due to recycling
challenges. We have learned that
applying innovative, responsible
business strategies to address theunintended consequences of ourbusiness can yield groundbreaking
responsible business results. One
example of this is our effort to leadour industry by working toward
our goal of making 100 percent ofour cups reusable or recyclable1
by 2015. We’re currently working
on a number of complementary
initiatives to advance ourprogress in this area. We know
this is a complex issue, and we’recommitted to collaborating witha wide range of stakeholders todrive meaningful change.

Recycling
While some communities already recycle ourpaper and plastic cups, most don’t have theinfrastructure in place to handle collection,
hauling and processing due to a lack ofdemand for cup material by the recycling
industry. This inconsistency makes it difficult
for us – with more than 17,000 retail locations
globally – to efficiently and effectively
implement recycling strategies.
To achieve greater scalability andstandardization, in 2008 we set a goal todevelop comprehensive recycling solutions
for our paper and plastic cups by 2012. We’re
currently on track to meet this goal.

1

GOALS

PROGRESS

Developcomprehensive
recycling solutions forour paper and plastic
cups by 2012

In 2010, we tested therecyclability of our cups in a
New York pilot and havegained a better
understanding of local
recycling processes andspecific actions we’ll take toincrease recycling
opportunities.

2010

DesignCollection

ON TRACK

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

2015

Infrastructure100%

In 2010, we continued tosupport local market
testing andimplementation toaccelerate future
front-of-store recycling.

Locations

5%

NEEDS IMPROVEMENT

Locations withfront-of-store
recycling

U.S. and Canada company-owned stores

Serve 25 percent ofbeverages made in
our stores in reusable
cups by 2015

Although we served 6.4
million more beverages inreusable cups in 2010 than2009, we will needconsiderable innovation andcustomer engagement toreach our 2015 goal.
NEEDS IMPROVEMENT

Serverware or tumblers used:
21.9 Million Times*

26.3 Million Times**
32.6 Million Times***

1.3%

1.5%

2008

2009

1.8%

25%

2010

2015

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores*** Global company-owned stores

GOALSwe want our cups – which
PROGRESS
Ultimately,in theUnited States account for about 95 percent
of ourin-storebeverage packaging– to beuse
Our electricity
Reduceenergydecreased by 1.6% inrecyclable
in formbyandin inpractice.
consumption
25%
company-owned storesin 2010.
company-owned
Weour
won’t
consider our cups universallystoresby
2010
recyclable until our customers canthem
DIDrecycle
NOT ACHIEVE
in our stores, at their homes and workplaces,
andNew
in public
spaces.
Goal:groundbreaking cup summits in Seattle in
May 2009 and Boston in April 2010, where
we met with government officials, raw material
6.8 KWH
suppliers, cup manufacturers, retail and 2008
6.69 KWH
beveragebusinesses,
recyclers, competitors,
2009
Decrease
1.7%
conservation 6.58
groupsand academic experts.
KWH
1.6% Decrease

2010

Pilot programs
have become an important
25% Decrease
2010
component of our strategy, demonstrating what
- Average electricity use per square foot/store/month U.S. and Canada company-owned storesis possible, and in turn enabling us to scale Baseline year: 2008
believed making our cups from alternative
those solutions. For example, in early 2010 weenergymaterials
wasrenewable
the key to broaderRenewableacceptanceworked with Global Green USA’s Coalition forPurchasepurchases increased toequivalent
to Throughintoenergy
the recycling
stream.
subsequent
the equivalentof 58% of Resource Recovery to test the recyclability ofthe electricity used in
50% of theelectricity
1 Billion KWH
Total
211.3
Million KWH
discussions
withstakeholders fromacross ourstores our paper
cupswith old corrugatedcardboard
company-owned
used in our
2008
20%
2010.
cup value chain, we learned thatinthe
cup can– the most extensively
recycled1 Billion
materialin theKWH Totalcompany-owned stores
259.5 Million KWH
2009
be by
recyclable
real obstacle
United States.25%
This pilot, which initially took
2010 as constructed. TheACHIEVED
1 Billion KWH Total
580.0 Million KWH
is thelackofrobustcommercial
andresidential
place
in
seven
Starbucks
storesin
Manhattan,
New Goal:
2010
58%
Purchasesystems
renewable inenergyrecycling
many of the communities
was expanded later in the year to include 86 ofequivalent to 100% of the2010
50%
electricity
usedbusiness.
in ourwhere
we do
our New York stores. Through this exercise, we
U.S. and Canada company-owned storescompany-owned stores by 2015
gained a better understanding of local recycling
We have taken a systems-based approach to
Gallons
Litersprocesses and themosteffective methods for
We are nearing our goal bywater
gainReducea betterunderstanding of therecycling
24.4
92.3
2008 insideachievinga nearly 22%
cup collection
our stores. In 2011 we
consumption by 25%
reduction our waterlandscape and identify specific actions
2009 22.4* 84.8*
consumption in 2010 over plan to launch additional recycling programs inin our company-owned
ourhostedbaseline in 2008.
we stores
can taketoreducewaste.
Wea number of
our19.1
store72.4communities.
by 2015
21.6% Decrease2010
Reduce energy consumption
by 25% in our companyWhen
westoresinitially
delved into this issue, we
owned
by 2015

In this report, “recyclable” refers to the ability to recycle or compost.

ON TRACK

2015

25% Decrease9Starbucks Global Responsibility Report

Goals & Progress 2010

Recycling & Reusable Cups
Although many of our customers order their
beverages to go, front-of-store recycling is
an important part of our effort to develop
comprehensive recycling solutions. In 2008 we
set a goal to implement front-of-store recycling
in all company-owned locations by 2015. Since
that time, we’ve introduced front-of-store
recycling in San Francisco, Seattle and Toronto.
By the end of 2010, front-of-store recycling bins
were present in five percent of our companyowned locations in the U.S. and Canada. While
we have a long way to go to reach our 2015
goal, we hope to see significant improvementin this area in 2011.
The majority of our in-store waste is generated
behind the counter, as is the case with manyretail businesses. In 2010 75 percent (2,318) of
our company-owned stores in U.S. and Canada
where Starbucks controls the waste program
were recycling cardboard boxes and otherback-of-store items. Among our remaining
retail locations in North America, the majority
were limited by operational impasses, suchas minimal store space or lack of commercial
recycling services.

Reusable Cups
In addition to advocating for improved
recycling infrastructures and using PCF in our
packaging, we’re encouraging our partners(employees) and customers to reduce waste by
opting for reusable cups instead of single-use
paper and plastic cups. Our goal is to serve 25
percent of the beverages made in our stores inreusable cups by 2015.
Since 1985 we’ve rewarded customers with a
discount for using travel tumblers. In 2010
customers brought their own tumblers into ourstores more than 32 million times.

We invested significant resources to promotetumbler use and increase awareness of oureveryday discount in 2010. We launched a
special campaign during the month of April,and on April 15, 2010, customers who brought
their tumblers into our stores were offereda free brewed coffee. More than 1.2 million
customers participated in the giveaway, andover 47,000 people around the world havesince pledged to use their own tumblers on
an ongoing basis.
Although reusable serveware and tumbler
use accounted for only 1.8 percent of total
beverages served last year, this simple shift inbehavior kept nearly 1.45 million pounds ofpaper out of landfills. In 2011 we’ll continue toencourage tumbler use, increase our supplyof serveware for customers spending time
inside our stores and continue to raiseawareness of the benefits of not using a paperor plastic cup at all.

The use of post-consumer recycled fiber (PCF)
in our cups and other packaging also continues
to be a priority for us, as it has been since 2006,
when we launched the industry’s first paper
beverage cup containing PCF. Over time, thiseffort has enabled us to conserve about 75,000
tons of virgin wood fiber, the equivalent of
more than 518,000 trees2.

2

According to the Environmental Defense Fund Paper Calculator.

10

recycling
U.S. and Canada company-owned storesStarbucks Global Responsibility Report

Goals & Progress 2010

Serve 25 percent ofbeverages made in
our stores in reusable
cups by 2015

Energy & Water

Although we served 6.4
million more beverages inreusable cups in 2010 than2009, we will needconsiderable innovation andcustomer engagement toreach our 2015 goal.
NEEDS IMPROVEMENT

Serverware or tumblers used:
21.9 Million Times*

26.3 Million Times**
32.6 Million Times***

1.3%

1.5%

2008

2009

1.8%

25%

2010

2015

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores*** Global company-owned stores

Across Starbucks, energy andwater use in our stores accountfor a significant share of ourenvironmental impact. We’reworking to conserve theseresources – not only in our stores,
but also in our roasting plants
and offices – by analyzing our
performance and implementing
new solutions to increase
efficiency. We’re also helping totransform the energy landscape by
supporting the development of thegreen power market.

Renewable Energy

GOALS

PROGRESS

Reduce energy
consumption by 25% in
our company-owned
stores by 2010

Our electricity use
decreased by 1.6% incompany-owned storesin 2010.
DID NOT ACHIEVE

New Goal:
Reduce energy consumption
by 25% in our companyowned stores by 2015

Purchase renewableenergy equivalent to
50% of the electricity
used in ourcompany-owned storesby 2010

6.69 KWH

6.58 KWH

1.6% Decrease

2010

25% Decrease

2010

Baseline year: 2008

Renewable energy
purchases increased tothe equivalent of 58% of
the electricity used incompany-owned storesin 2010.
ACHIEVED

211.3 Million KWH

1 Billion KWH Total

259.5 Million KWH

1 Billion KWH Total

580.0 Million KWH

1 Billion KWH Total20%

By 2015 we aim to double our renewableenergy purchases once again – equivalent
to 100 percent of the energy used in ourcompany-owned stores worldwide. We willcontinue to leverage industry guidance asa member of the World Resource InstituteGreen Power Market Development Groupand the U.S. EPA Green Power Partnership.

Energy Conservation
Energy use accounts for roughly 80 percent ofour carbon footprint1, making it our greatest
opportunity for improvement. One of theimportant ways we’re working to reduce

2008

25%

2009

58%

2010

50%

2010
U.S. and Canada company-owned stores

Gallons

In addition to reducing our energy
consumption, we’re increasingly focused on
advancing the development of renewableenergy sources. In 2008 we set a goal topurchase renewable energy credits equivalent
to 50 percent of the electricity used in our
North American company-owned stores by
2010. Last year, we achieved our goal by morethan doubling our renewable energy certificate(REC) purchases. This initiative led the U.S.
Environmental Protection Agency to name us
among the top five green power purchasers in
the country.

2009

1.7% Decrease- Average electricity use per square foot/store/month U.S. and Canada company-owned stores

New Goal:
Purchase renewable energy
equivalent to 100% of theelectricity used in ourcompany-owned stores by 2015

Reduce water
consumption by 25%
in our company-owned
stores by 2015

2008

6.8 KWH

We are nearing our goal byachieving a nearly 22%
reduction our water
consumption in 2010 over
our baseline in 2008.
ON TRACK

Liters

2008

24.4

92.3

2009

22.4*

84.8*

2010

19.1

72.4

2015

21.6% Decrease
25% Decrease*2009 usage adjusted from 23.4 to 22.4 gallons
Baseline year: 2008

GOALS

PROGRESS

our energy consumption is by replacing
Canada, the UK, China and Singapore. This
incandescent and halogen lighting with more
effort has helped reduce our electricity
EnergyIn 2010 we completed the2
Beginninginefficient
LED lighting.
Our LED lights–
combined
consumption by 3.3 percentsavings
since 2008.
pilot phase for the U.S.
December
2010,
ImprovedGreen
Building Council’s We expect to see a much more significant
with the energy-efficient compact
fluorescentindoor
LEED® Volume Certificationbuild all new,
Stewardship ofenvironmental
pilot program,with ourlights already installed in our stores– will havea 10 reduction in 2011
as we measure ourfirst andfull
resources
company-owned
qualitystore design andsensitivity to
bigstores
impacttoon
our energy use overtime. projects
year of performance since the completionof
construction
their impacts
achieve
audited and approved by
LEED® certification
theretrofitprogram.
the USGBC.
We began exploring LED lighting options in
Water
CO2
efficiency
ON TRACK2008, but at the time found no commercially
While we fell short of our goal emissions
to reduce
reduction
available product that met our aesthetic andenergy use by 25 percent in company-owned
functional requirements.
stores in 2010, we spent some critical timeevaluating specific areas where we can makeAs a result, we reached out to General Electric
improvements. We piloted a new energy
to develop an energy-efficient LED bulb
management system in 10 stores across thethat complements our store design and is
United States, which validated our potential tocompatible with existing fixtures.
reduce energy consumption through remotemonitoring and control of heating, ventilation
We launched our LED lighting conversion
and air conditioning equipment. We plan toprogram in 2009. In 2010 we were able toexpand the pilot program in 2011 to validate
complete installation in more than 7,000
our findings across a larger portfolio of stores.
company-owned stores in the United States,

We measure only the portion of our carbon footprint that we directly control. This includes emissions from our company-owned store operations, roasting plant operations,and company-owned jets and vehicles. We do not currently measure emissions from transportation and other functions executed by third parties.
2
Average electricity use per square foot/store/month. Gas use declined by 3 percent in 2010 to .052 therms per square foot/store/month.
1

11

Starbucks Global Responsibility Report

Goals & Progress 2010

Energy & Water
In the year ahead, energy conservation willcontinue to be a major focus of our global
store development initiatives. We’ll also
look at other ways to minimize our energy
consumption by replacing existing equipment
and appliances with high-efficiency alternatives
as they reach the end of their useful life. We’re
now aiming to achieve a 25 percent reduction
in energy use by 2015.

Water Conservation
Of all the resources on which our business
relies, water is certainly one of the mostvital. Much of the water in our stores is used
to make coffee and tea beverages, and to
run equipment such as dishwashers and ice
machines. We’re evaluating our needs on an
ongoing basis and deploying new conservation
methods in order to responsibly manage ourwater use.
In 2008 we set a goal to reduce water
consumption by 25 percent in company-owned
stores by 2015. Over the past two years, ourwater use has decreased by nearly 22 percent3
as a result of several proactive measures.

In 2009 we began implementing a new,manually operated hand-meter faucet to
replace the dipper wells, reducing our water
use while maintaining food safety standards.
By the end of 2010, we had installed thismechanism in our company-owned stores in
the United States and Canada, allowing us toconserve approximately 100 gallons (378 liters)of water per store per day. Last year we also
implemented new water-saving equipment andoperational solutions in international markets.
Moving forward, we’ll continue to look forinnovative ways to minimize water use in ourstores around the world.

One important component of our water
conservation strategy has been the eliminationof dipper wells. These fixtures used a constantstream of running water to rinse away foodresidue, keeping utensils clean and preventing
bacterial growth. Although dipper wells
enabled us to meet or exceed regulatory
requirements and internal food safety standards,
they caused considerable water waste.

3

Average water use per square foot/store/month.

12

electricity used in ourcompany-owned stores by 2015

Starbucks Global Responsibility Report

Goals & Progress 2010

U.S. and Canada company-owned stores

Gallons

Reduce water
consumption by 25%
in our company-owned
stores by 2015

Green Building

We are nearing our goal byachieving a nearly 22%
reduction our water
consumption in 2010 over
our baseline in 2008.
ON TRACK

Liters

2008

24.4

92.3

2009

22.4*

84.8*

2010

19.1

72.4

21.6% Decrease
25% Decrease

2015*2009 usage adjusted from 23.4 to 22.4 gallons
Baseline year: 2008

With more than 17,000 retaillocations around the world,
we’re intently focused on green
building initiatives to help us reachour environmental targets, theflexibility to support our scale andthe efficiency to reduce our longterm operating costs. We’ve madesignificant progress in our efforts,and starting in January 2011, we
expect to reach our goal that
all of our new, company-owned
stores will be built to achieve
LEED® (Leadership in Energy andEnvironmental Design) certificationby the U.S. Green Building
Council (USGBC).

Starbucks joined the USGBC in 2000, andwe opened our first LEED®-certified store in
Hillsboro, Oregon, in 2005. Shortly after, wewere one of the first companies to participate
in the LEED for Retail pilot program, leading
development of the standard for adapting
LEED to new construction and commercial
interiors strategies for restaurants and otherretail businesses.

1

GOALS

PROGRESSBeginning in
December 2010,
build all new,company-owned
stores to achieve
LEED® certification

In 2010 we completed thepilot phase for the U.S.
Green Building Council’s
LEED® Volume Certification
pilot program, with our 10
store design andconstruction projects
audited and approved by
the USGBC.
ON TRACK

Improvedindoorenvironmental
qualityWaterefficiency

Energysavings
Stewardship ofresources andsensitivity totheir impacts

CO2emissions
reduction

In 2009 Starbucks became one of the firstretailers to join USGBC’s LEED Volume
Certification pilot program. As part of thiseffort, last year we launched 10 store designand construction projects in six different
bioregions1 and five countries around theworld, incorporating various green building
strategies. The pilot projects have been audited
and approved by the USGBC. We are now
able to use the 64 green credits tested andapproved from the pilots worldwide to achieve
our LEED goal.

Inside our LEED stores, customers willfind reused, recycled and locally sourced
elements, as well as innovative features thatconserve water and energy. For example,
at our University Village store in Seattle, thecommunity table is made of wood from a fallen
tree recovered from a nearby neighborhood.
At our Paris Disney location in France, thecountertop material contains recycled mobilephone parts. In Fukuoka, Japan, rainwatercollected from the roof of our store is used tonourish the surrounding landscape.

In 2010 Starbucks built six new or renovatedcompany-owned stores that achieved LEED
certification in the United States and Canada.
We also have eight stores outside North
America that have either achieved or will be
registered for LEED certification in early 2011:
in Portugal, Spain, Japan, France, Germany
and the Philippines. In addition, our global
Support Center in Seattle and our roasting
plant in Sandy Run, South Carolina, have bothearned LEED certification.

While our goal specifically addresses new,company-owned stores, we’re proactively
looking for opportunities to leverage
environmentally friendly practices in all of
our construction projects. With more than 70
LEED accredited professionals on our global
store development team, we’re also working
to provide licensees and other business
partners with guidance on design plans andconstruction.

A bioregion is an area where climate conditions have remained essentially consistent over a period of 30 years.

13

Starbucks Global Responsibility Report

Goals & Progress 2010

About the 2010
Global Responsibility Report
Scope
The report for fiscal 2010 focuses on our
three Starbucks™ Shared Planet™ focus
areas: ethical sourcing (buying), environmental
stewardship and community involvement. We
have also included helpful links to information
and resources found on Starbucks.com and inpast reports regarding our financial, corporate
governance, workplace and diversity policies
and performance. In developing this report,
we’ve covered topics and issues that we
believe are important to Starbucks and our
stakeholders. We either share information
about those topics in the body of the reportor direct readers to other resources. What
we report has also been informed by the
Global Reporting Initiative G3 Guidelines, a
set of internationally recognized sustainability
reporting standards. These key criteria areoutlined in our GRI Index.
A high-level summary of our progress on
Starbucks™ Shared Planet™ commitments
is contained in our 2010 Global Responsibility
Scorecard.

related data does not currently encompass all of
our operations. For now, anecdotal information
is included for international operations, licensed
store operations and joint ventures, whereavailable and relevant. A notable exception tothis is information on total coffee purchases,
which is for all Starbucks brands and retailstores, including Starbucks Coffee, Seattle’s
Best Coffee and Torrefazione Italia.
Starting in fiscal year 2011 our goals specificallyencompass company-owned stores globally.

Reporting Year
Starbucks fiscal year 2010 (September 28, 2009
– October 3, 2010), unless otherwise noted.

Currency
All references to currency are in U.S. dollars,
unless otherwise noted.

Previous Reports
Boundaries
Our Global Responsibility Report for fiscal
year 2010 focuses on the work we are doingin: ethical sourcing, community involvement
and environmental stewardship. These are theareas of greatest importance to Starbucks,
our customers and partners (employees), as
well as non-governmental organizations andinvestors. We also know health and wellness
and workplace practices are of considerable
interest to our stakeholders. Information about
these key topics can be found on Starbucks.com.
While our commitments are global, our reportcontent is focused largely on Starbucks U.S.
and Canada company-owned and operated
retail stores and global supply chain operations– areas that represent the majority of Starbuckssocial, environmental and economic impacts.
Our system for reliably collecting and reporting

Forward-Looking Statements
Our reporting on global responsibility for fiscal
2010 includes forward-looking statements
about the company’s business and thecompany’s future business plans, initiatives andobjectives. These forward-looking statements
are based on currently available operating,financial and competitive information and are
subject to a number of significant risks anduncertainties. 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’stransformation strategy, restructuring, cost
reduction and other initiatives; fluctuations
in U.S. and international economies andcurrencies; the impact of competition; theeffect of 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 3, 2010. The company assumes noobligation to update any of these forwardlooking statements.

http://www.starbucks.com/responsibility/
learn-more/goals-and-progress

Information Integrity
Starbucks management is responsible for the
preparation and integrity of the information
being reported for fiscal 2010. Througha system of internal controls, including acomprehensive verification process involving
internal subject matter experts, we believe
this information fairly represents our global
responsibility activities and performance results
for the fiscal year 2010. External verification isprovided by Moss Adams LLP. Read the Moss
Adams Independent Assurance Report.

14

Starbucks Global Responsibility Report

Goals & Progress 2010

	  INDEPENDENT	  ASSURANCE	  REPORT	
  
	
  
To	
  the	
  Stakeholders	
  of	
  Starbucks	
  Coffee	
  Company	
  
	
  
We	
   have	
   examined	
   the	   data	
   identified	
   below	
   (the	
   Data)	
   contained	
   within	
   the	   Starbucks	
   Coffee	   Company’s	
   Global	
  Responsibility	
   Annual	
   Report	
   (the	
   Report)	
   for	   the	   year	
   ended	   October	
   3,	
   2010.	
   Starbucks	
   Coffee	   Company’s	
  management	
  is	
  responsible	
  for	  the	
   Data.	
  Our	  responsibility	
  is	
  to	
  express	
  an	
  opinion	
  on	
  the	
  Data	  listed	
  below	
  based	
  on	
  
our	
  examination.	
  	
  • Green	
  coffee	
  purchases	
  and	
  average	
  price	  per	
  pound	
  as	
  contained	
  in	
  the	
  Coffee	
  Purchasing	  section	  	  • C.A.F.E.	
   Practices	
   coffee	
   purchases	
   and	   purchases	
   as	   a	   percentage	
   of	
   total	
   coffee	
   purchased	
   as	
   contained	
   in	
   the	  Coffee	  Purchasing	  section	
  	
  
•

•
•

Fair	
  trade	
  certified	
  green	
  coffee	
  purchases	
  and	
  purchases	
  as	
  a	
  percentage	
  of	
  total	
  coffee	
  purchased	
  as	
  contained	
  in	
  the	
  Coffee	
  Purchasing	  section	  	
  Certified	
   organic	
   coffee	
   purchases	
   and	   purchases	
   as	   a	   percentage	
   of	
   total	
   coffee	
   purchased	
   as	
   contained	
   in	
   the	  Coffee	  Purchasing	  section	
  	
  Amount	   of	
   commitment	
   to	
   investment	
   in	
   farmer	
   loans	
   and	   number	
   of	
   farmers	
   as	
   contained	
   in	
   the	   Farmer	
  Support	  section	
  	
  	
  

	
  
The	
  Criteria	
  used	  to	
  evaluate	
  the	
  Data	  are	  contained	
  in	
  the	
  sections	
  of	
  the	
  Report	
  indicated	
  above.	
  
	
  
Our	
   examination	
   was	
   conducted	
   in	
   accordance	
   with	   attestation	
   standards	
   established	
   by	
   the	   American	
   Institute	
   of	
  Certified	
  Public	
  Accountants,	
  and	
  accordingly,	
  included	
  examining,	
  on	
  a	
  test	  basis,	
  evidence	
  supporting	
  the	
  Data	  and	
  performing	
   such	   other	
   procedures	
   as	
   we	
   considered	   necessary	   in	
   the	   circumstances.	
   Those	
   procedures	
   are	   described	
  in	
  more	  detail	
  in	
  the	  paragraph	
  below.	
  	  We	  believe	
  that	  our	
  examination	
  provides	
  a	
  reasonable	
  basis	  for	
  our	
  opinion.	
  
	
  
Our	
  evidence-­‐gathering	
  procedures	  included,	
  among	
  other	
  activities,	
  the	
  following:	
  	
  • Testing	
   the	   effectiveness	
   of	
   the	   internal	
   reporting	
   system	
   used	   to	
   collect	
   and	   compile	
   information	
   on	
   the	   Data	
  which	  is	  included	
  in	
  the	
  Report;	
  
•

•
•
•

Performing	
   specific	
   procedures,	
   on	   a	   sample	
   basis,	
   to	
   validate	   the	   Data,	
   on	
   site	   at	
   Starbucks	
   Coffee	
   Trading	  Company	
  buying	
  operations	
  in	
  Lausanne,	
  Switzerland	
  and	
  Corporate	
  headquarters	
  in	
  Seattle,	
  Washington;	
  Interviewing	
  partners	
  (employees)	
  responsible	
  for	
  data	  collection	  and	
  reporting;	
  Reviewing	
  relevant	  documentation,	
  including	
  corporate	
  policies,	
  management	
  and	
  reporting	
  structures;	   	
  Performing	  tests,	
  on	
  a	
  sample	
  basis,	
  of	
  documentation	  and	
  systems	
  used	  to	
  collect,	
  analyze	
  and	
  compile	
  the	
  Data	
  
that	
  is	
  included	
  in	
  the	
  Report,	
  and	  • Confirming	  certain	
  of	
  the	
  Data	  to	
  third	  party	  confirmations	  and	
  reports.	
  
	
  
In	
  our	
  opinion,	
  the	
  Data	  for	  the	
  fiscal	
  year	  ended	
   October	
  3,	
  2010	
  is	
  fairly	
  presented,	
  in	
  all	
  material	
  respects,	
  based	
  on	
  
the	
  Criteria	
  indicated	
  above.	
  Seattle,	
  Washington	
  March	  7,	  2011	  www.mossadams.com	
  

	
  

15