2016

GLOBAL
SOCIAL IMPACTP E R F O R M A N C E

Good things are happening.
Our 2016 Global Social Impact Performance report marks our progress as a company, one that’s performance-driven
through the lens of humanity. Thanks to the efforts of more than 330,000 partners in 75 countries around the world, we’ve
exceeded many of our goals to help the communities we serve, while achieving another year of record financial performance.
Our enduring strategic partnerships with organizations like Conservation International and Feeding America as well as
hundreds of community service partners around the world enable us to use our scale for good.
We’ve made this progress together by being purposeful in our decisions and our collective actions, and we have bold, newaspirations for the years ahead.

Kevin Johnson
president and ceo

The way forward.
We will focus in four areas where our commitment and scale can makethe biggest impact:• M aking coffee the world’s first sustainable agricultural product by doing our part toimprove the lives of 1 million people in C O F F E E C O M M U N I T I E S aroundthe world

SUSTAINABLE
COFFEE

4

GREENERRETAIL

8

CREATING
OPPORTUNITIES11STRENGTHENING
COMMUNITIES

15• B uilding and operating the world’s largest G R E E N R E T A I L B U S I N E S S• C
 R E A T I N G P A T H W A Y S to employment for 1 million people• S
 T R E N G T H E N I N G C O M M U N I T I E S by welcoming all
and creating impact on issues that matterstarbucks.com/social-impact

4

Our future in SUSTAINABLE COFFEE
Starbucks is proud to have reachedthe milestone of 99 percent ethicallysourced coffee.
However, we are not done yet. We will continue to work with that last
1 percent to bring producers along on this journey with us, like we dowith Starbucks Reserve® Eastern D.R. Congo Lake Kivu coffee, where
we are working with farmers to expand our ethical sourcing effort.
We believe we can increase the prosperity and resiliency of 1 million
farmers and workers who grow our coffee in coffee communities aroundthe world. We will do this by investing in coffee communities, sharing
our technical coffee knowledge and innovating with new approaches.
Moving beyond our 100 percent ethically sourced commitment, we are
joining with others to make coffee the world’s first sustainable agricultural
product.
INVESTING IN FARMERS
Thanks to our partners and customers, more than 25 million trees havebeen donated to coffee farmers. This effort began in September 2015,
when Starbucks launched the One Tree for Every Bag Commitment tohelp ensure the long-term supply of coffee and the economic future ofcoffee farmers. Its goal was to raise enough funds by the end of 2016
to plant 20 million coffee seedlings that will replace trees declining in
productivity due to age and disease such as coffee leaf rust. With thehelp of our customers, we exceeded this goal in just over a year.
To build on that success, Starbucks will quadruple its commitmentby providing 100 million healthy coffee trees to farmers by 2025 byleveraging our green coffee purchases in coffee-growing communities
most impacted by climate change.

We will work in collaboration with Conservation International (CI) and ourpartners on the ground and will share what we learn across the industry,
to ensure that other farming communities that need to replace their trees
can benefit from this program.
The Starbucks Global Farmer Fund is a $50 million commitment toprovide financing to coffee farmers. Through these loans, farmers
have the ability to support agronomy, restoration and infrastructure
improvements. This work directly influences coffee quality, sustainability
and the economic benefit for the specialty coffee industry.
To support critical issues coffee communities are facing, the Starbucks
Foundation partners with organizations with local expertise to build
sustainable solutions. Since 2014 the Starbucks Foundation has awarded
origin grants to support smallholder-farming families in coffee- and teagrowing communities, reaching approximately 47,000 direct and indirect
beneficiaries. By 2020 the Foundation plans to reach 250,000 people.
In 2016 Starbucks began funding a new project in Oaxaca, Mexico,with Conservation International, focused on delivering a net positivemodel to reestablish coffee as a livelihood. Oaxaca was once a globally
important origin for high-quality specialty coffee, but productivity has
declined significantly due to climate change, lack of market access,poverty, migration and other challenges. CI will work with local partners
to improve farmers’ shade-management systems and increase alternative
income streams—with the aim of stabilizing farming communities inOaxaca and enabling farmers to continue growing coffee. CI will also train
producers in water conservation to protect freshwater resources and will
work to ensure the active participation of women, indigenous farmers andtheir families.

5

SHARING COFFEE KNOWLEDGE
Starbucks currently operates eight Farmer Support Centers in key coffeeproducing countries around the world, from Indonesia and Rwanda to
our newest center in Mexico. Our open-source agronomy approach will
give farmers in these regions free access to the latest findings of our
top agronomists, including new varietals of disease-resistant trees andadvanced soil-management techniques. Building on traditional growing
methods will help farmers continue to improve both the quality and yieldof their crops and help increase profitability, ensuring the future of highquality coffees for everyone. With this global network, we aim to train
200,000 coffee farmers by 2020.
WORKING WITH OTHERS TO MAKE
ALL COFFEE 10 0 PERCENT SUSTAINABLE
We know that greatest challenges in coffee can be solved faster if wecollaborate and share solutions. That’s why Starbucks is one of thefounding members of The Sustainable Coffee Challenge, a diverse
industry coalition led by Conservation International with the call to actionof making coffee the world’s first sustainable agricultural product.
The Challenge began in 2015 at the United Nations climate talks in Parisand has grown to more than 60 members across the industry, including
other roasters, non-governmental organizations and the governments of
Mexico and Rwanda. The Challenge is now pulling together the industry
precompetitively to develop innovative solutions to ensure the prosperity
and well-being of farmers, workers and communities, sustained supply ofcoffee and conservation of nature. At Starbucks, we have an opportunity
to partner with others and go beyond our own commitment of 100 million
trees. Through the Sustainable Coffee Challenge, the industry is coming
together to commit to 1 billion trees, while developing shared principles
for responsible renovation. We invite our partners and customers to sharethe journey with us and to follow the Challenge at sustaincoffee.org.

ISSUING OUR FIRST SUSTAINABILIT Y BOND
In May 2016, we issued our first U.S. Corporate Sustainability Bond.
The company will use the net proceeds from the offering of $500 million
to enhance its sustainability programs around coffee supply chain
management through eligible sustainability projects.
MORE THAN COFFEE
We are committed to 100 percent ethically sourced tea and cocoa. To learn
more about our commitment and progress, visit starbucks.com/social-impact.

GOALS

6

SUSTAINABLE
COFFEE

SOURCING COMMITMENT

100% Ethically
Sourced Coffee
STARBUCKS GLOBALFARMER FUND

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

OPEN-SOURCE AGRONOMY

Provide 100 Million Trees
to Farmers by 2025

Train 200,000 Coffee Farmers
by 2020

starbucks.com/social-impact

7
FROM OUR FARMERSOne Tree for Every Bag
Commitment
Catalina Pacheco, a second-generation coffee producer and loving
grandmother, methodically roasts a small batch of coffee from her
farm, La Finca San José, tucked into the hillsides of Guatemala.
Her husband, Carlos Lima, and grandson, Kevin, proudly guide us
to their more than 25-year-old coffee farm and the more than 5,700
newly planted Marsellesa coffee plants received through the One
Tree for Every Bag Commitment.
Kevin runs ahead of the group and hovers over a new leaf
rust-resistant Marsellesa coffee tree. He turns to glance at his
grandfather who is in the middle of a discussion. Kevin proudly
says, “One day I will run this farm.” Carlos Lima kneels down to the
new coffee tree and says with a soft smile, “This program has beena gift for our family.” An even-bigger smile spreads across Kevin’s
face. He stands up and leads us back to their home where Catalina
shares freshly ground coffee prepared with sugar and served withsweet bread. There is a sparkle in both Catalina’s and Carlos Lima’s
and their grandson’s eyes while we all savor the fresh cup of coffee
from their farm. As we sip, we are reminded of the generationsof families, culture and craft impacted by the One Tree for Every
Bag Commitment. We see a promising future of opportunities
presented to the next generation with each coffee tree.
To date the One Tree for Every Bag Commitment has provided
25 million coffee trees to coffee producers in Mexico, Guatemala
and El Salvador. These coffee regions were devastated when about
40 percent of coffee trees were killed by coffee leaf rust. Many
farmers had to leave their farms, but now with the One Tree forEvery Bag Commitment, we see a renewed hope in the future of
their farms that their families have cultivated for generations.
Together with Conservation International, we are creating positive
opportunities for the next generation of coffee farmers.

8

Leading the way in GREENER RETAIL
Celebrating a 30-year legacy ofenvironmental leadership, we have longunderstood that the planet is our mostimportant partner. Our approach towardgreen retail continues with ambitious
goals for 2020 and beyond.
GREENER STORESStarbucks is proud to have built more than 1,200 LEED® (Leadershipin Energy and Environmental Design) certified stores in 20 countries.
We are the largest builder of green stores in our sector and our storesaccount for 20 percent of the LEED®-certified retail projects globally.
Now Starbucks will deepen its commitment to environmentally friendly
retail by developing a store verification program to drive innovation,
sustainability and efficiencies throughout the store portfolio. Our goal ofachieving 10,000 greener retail stores by 2025 will encompass new andexisting stores by evaluating and developing building standards, utility
efficiency targets and partner engagement. This new program positions
Starbucks to truly leverage its scale for good and delivers on our ambition
to become the world’s greenest retailer.
INNOVATING A GREENER CUP
Starbucks has made significant progress to green up the cup andrecognize that there is still a long way to go. We were the first company
to offer a discount to our customers who bring a reusable cup, the first
to include 10 percent post-consumer fiber (PCF) in our hot cups and wehave led the industry in advocating for increased recycling infrastructure.
While we can recycle the cup in many communities today, we willcontinue to advocate with local governments and stakeholders to increase

recycling in all of our company-owned markets. Our goals for 2022 aredesigned to accelerate progress to achieve a greener cup. 1) We aim todouble the recycled content in the hot cup and explore alternative materials
for cold cups. 2) We remain committed to recycling and will work to double
the number of stores and communities with access to cup recycling.
3) We will promote and incent the use of “for here” and reusable cups.
INVESTING IN GREENER POWER
Since 2005 Starbucks has invested in renewable energy and achieved amilestone last year by purchasing the equivalent of 100 percent of global
company-operated stores' electricity consumption, primarily utilizing
Renewable Energy Credits (RECs) from the U.S. and Canada and throughgreen electricity-supply contracts across Europe. Starbucks is the numberone purchaser of renewable electricity in its sector on the EPA’s GreenPower Partnership National Top 100 list. Last year Starbucks joined
The Climate Group's RE100, a coalition of some of the world’s largest
businesses committed to using renewable electricity. As we look to the
future, Starbucks will focus on identifying new, geographically relevantways to buy renewable energy and bring new renewable projects onto thegrids of the countries where we operate around the world.
EMPOWERING GREENER PARTNERS
We are focused on galvanizing our partners (employees) who are passionate
about sustainability to inspire and teach. In 2016 we piloted the Greener
Apron™ program with both retail and nonretail partners—a voluntary
certification program that helps partners learn about environmental
sustainability through three short modules co-created with Arizona State
University’s School of Sustainability. More than 1,100 partners participatedwhen we launched the pilot. In spring 2017, we will expand the programfor partners in the U.S., Canada, the U.K. and The Netherlands. Our goal
is to engage 10,000 partners globally by 2020 and create a network ofsustainability champions.

GREENER STORESGREENERRETAIL

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

GOALS

9

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

10
FROM OUR PARTNERS

Forging Greener
Business Practices
Tawny Villain has been a Starbucks partner for 10 years, in threedifferent states. Most recently Tawny has found herself in Austin,
Texas, where the sun is shining year round and she can pursue
her passions: sustainability and opportunities to learn. Tawny’s
interests have led her in many directions, but what continues to holdher attention is the impact humans have on the environment welive in and how important it is for all people to understand the roles
they play. The Greener Apron™ program, offered in partnershipwith Arizona State University (ASU), has been one outlet for her tocontinue her sustainability education and gives her the opportunity
to offer her expertise to fellow store partners and customers.
Tawny is among the many partners enrolled in the Starbucks College
Achievement Plan (SCAP) at ASU. She chose to pursue a degree
in sustainability. This particular degree is the only SCAP degree
that requires students to complete an internship in the field prior
to graduation. The Global Social Impact and Public Policy teamjumped at the opportunity to benefit from the academic rigor of
the program and offered a pilot Sustainability Fellowship for thesescholars.
Tawny, in addition to two other partners, has been completing herinternship requirement remotely with the Sustainability team at
Starbucks, focusing her work on mapping and understanding thewaste landscape in Austin, which will to serve as a case study for thecompany as we look to improve waste management.
“The fellowship, in hand with the ASU sustainability program,has raised my awareness about sustainability and what thatmeans,” said Tawny. Visiting the Starbucks Support Center inSeattle and seeing firsthand the projects that teams are working on
so closely linked to the things that I care about is so exciting, and it
has made me even more proud to be a partner. I’m thankful for thisprofessional experience, built on my barista background.”

11

CREATING OPPORTUNITIESHelping people achieve their dreams.
As a leader in hiring great talent,
Starbucks has and will always look tocreate opportunities for our partners andcustomers in the communities we serve.
EMPLOYING OPPORTUNITY YOUTH
Starbucks is embracing and employing tens of thousands of youth,
ages 16–24, who are disconnected from work and school, to help themachieve their dream and our shared future. Starbucks led the launch of
the 100,000 Opportunities Initiative with 50 other employers in 2015.
As the country’s largest employer-led coalition committed to creating
pathways to meaningful employment for young people, the coalition hasreached its goal of hiring 100,000 Opportunity Youth—two years aheadof schedule.
Starbucks is committed to hiring 100,000 Opportunity Youth by 2020
and the coalition is now aligning with the cross-sector goal of creating
1 million opportunities by 2021. The group will continue to share new
recruiting and human resources practices tailored to hiring, retaining
and advancing Opportunity Youth.
In the U.S., we are also opening stores in low- to medium-income
communities that are equipped with training centers where we work withlocal nonprofits to provide job-skills training to young people. Around theworld, we offer training and support to young people in ways relevant totheir needs and opportunities.
HIRING VETERANS AND MILITARY SPOUSES
Hiring and honoring veterans and military spouses allows us all tobenefit from their leadership, experience and sense of service. In 2013
Starbucks committed to hiring at least 10,000 veterans and military
spouses by 2018. In March 2017, we announced that we met our goal

18 months early and have expanded our goal to 25,000 by 2025.
Our commitment extends beyond hiring. It includes the ability forpartners who are current members of the U.S. Armed Forces orveterans to extend their College Achievement Plan benefit to a spouseor child. We're also establishing places for our veteran and militaryfamily communities to connect with one another, creating volunteer
opportunities and leveraging their unique leadership experiences topositively shape our company and our world.
WELCOMING REFUGEES
Refugees represent a population who seek a chance to rebuild theirlives 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 thecommunities where we do business, Starbucks is leading a global effort
over the next five years to welcome and employ 10,000 refugees whose
talent, experience and resilience will enrich the communities we servearound the world. In the U.S., we will focus on interpreters, personnel
and their families who served alongside American armed forces.
E XPANDING STARBUCKS COLLEGE
ACHIEVEMENT PLAN
By the end of 2016, we had more than 6,000 partners participating in
the Starbucks College Achievement Plan program with 227 graduates.
In March 2017, we announced the Pathways to Admission, a programthat provides partners the ability to work toward admission tuition-free.

GOALS

12CREATING
OPPORTUNITIESSTARBUCKS 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

13
FROM OUR PARTNERS

More Accesible
Pathways to Education
For Hagar Johnson, the decision to join Starbucks was basedon more than a supportive work environment and a steadypaycheck, it was also about the ability to earn a college education.
“I attended an Opportunity Fair and Forum in Chicago andStarbucks drew me in with their conversation about paying
for employees to go to school through the Starbucks College
Achievement Plan,” said Johnson, a shift supervisor inEnglewood. “I was hired on the spot and was excited to finallyfinish my degree.”Prior to Starbucks, Johnson had attended Georgia Southern
University, but health challenges caused her to drop out. Once on
board at Starbucks, she applied for the College Achievement Plan.
Unfortunately, her grades didn’t meet requirements.
Johnson is one of an estimated 15,000 Starbucks partners who
have a desire to earn a degree, but do not qualify for admission to
the company’s College Achievement Plan, which offers all eligible
U.S. partners full tuition reimbursement for an undergraduate
degree from Arizona State University (ASU) online. To help
these partners reach their goals, Starbucks and ASU launched
Pathways to Admission in March 2017, a program that provides
partners the ability to work toward admission tuition-free.
Because of the Pathways to Education program, Johnson is now
happily on her way to earning admission to ASU.
“Not everyone goes straight to college. Some people haveobstacles and setbacks that prevent them from building theirskills and continuing their education,” Johnson said. “Starbucks
cares enough to help me grow to be that future business leader
or doctor or whatever it is I want to be.”

14
FROM OUR PARTNERS

Learning ThroughApprenticeship
Many Starbucks partners are under the age of 24—an age
group facing the most significant challenges in gaining full- andpart-time work. Through training and employment initiatives,
Starbucks aims to help young adults prepare for and secure jobs.
The Starbucks Apprenticeship Programme, launched in2012 in the U.K., offers young people an opportunity to learn
about a retail management career and build the transferable
skills needed to further their individual goals. In March 2016,
Starbucks expanded the effort to include those with higher
degrees, allowing for apprenticeships in a range of disciplines
such as digital, law and management. With this change,
Starbucks began offering professional services apprenticeships
in its U.K. Support Center in addition to opportunities in thecompany’s stores.
Eighteen-year-old Zain Bedar learned about the Starbucks
Apprenticeship Programme at a career fair in London earlier
this year. He is now nine months into a two-year Level 4
apprenticeship as a financial analyst.
“My apprenticeship allows me to combine studying on thejob while gaining practical work experience and skills in a
professional environment,” he said. “I am pleased that I madethe decision of vocational training through my apprenticeshiprather than going to university, and I am very excited about
my future career prospects.”
In addition to earning a salary, he will obtain a Chartered
Institute of Management Accountant (CIMA) qualification at
the end of his training with Starbucks.

15

STRENGTHENING COMMUNITIESThe world is our neighborhood.
Every Starbucks store is a part of acommunity, and we’re committed tostrengthening neighborhoods wherever
we do business.
DONATING RE ADY-TO -E AT ME ALS
In the spirit of our mission and values, partners across the country
advocated for a solution to donate unsold food to the communities
we serve. Through a new and unique strategic partnership with Feeding
America, we will rescue 100 percent of food available to donate fromall of our U.S. company-owned stores by 2020, positioning Starbucks
as the sector leader in food rescue.
By partnering with Feeding America, we are leveraging the largest
domestic hunger-relief and food-rescue nonprofit network in the U.S.
to redistribute unsold food to families and individuals struggling withfood insecurity. As of March 2017, we have donated 1 million meals.
Once the program rollout is complete, we expect to increase ourdonations exponentially to 50 million meals annually.
To enable food donation in the U.S., Starbucks is providing financial
support to food banks to invest in program infrastructure, which includes
refrigerated vehicles that can safely transport rescued food.
The FoodShare program donates meals and also connects our partners
with their local food banks to donate their time through service projects.
In addition, the partnership with Feeding America not only invests in thefood bank network, but also allows Starbucks the opportunity to lend
support to advocacy efforts around hunger relief programs at the national
and local levels. Through food donation, community service, financial
investment and advocacy efforts, the FoodShare program is working tohelp end hunger from all sides.

COMMUNITY SERVICE
We have always believed Starbucks can—and should—have a positive impact
on the communities we serve. Community service reflects our mission
and values, who we are as a company and one of the single biggest ways
we individually and collectively come together to help fill a need in thecommunities where Starbucks operates.
We launched Global Month of Service in April 2011 to honor our 40th
anniversary with a monthlong dedication to service, and in April 2016 alone,
more than 50,000 partners served together in their local communities.
Starting in 2017, we are launching our year-round commitment and are excited
to announce our new community service goal: 100 percent of Starbucks® stores
across the globe will annually participate in service by 2020. We aspire to haveevery participating store around the world engaged in community service byencouraging partners to lead and take part in projects that link to our global
social-impact efforts in sustainability, hunger, youth, veterans and refugees.
THE STARBUCKS FOUNDATIONThe Starbucks Foundation supports communities around the globe in areasaligned with its social-impact priorities:
Opportunity for Youth
In 2016, 63 partnerships in 10 countries directly supported more than
20,000 young people in developing job and leadership skills and connecting
them to employment.
Supporting Coffee, Tea and Cocoa Communities
Our commitment to communities extends beyond our stores to include theregions that supply our coffee, tea and cocoa. The Foundation invests inprograms designed to strengthen local economic and social development.
We work collaboratively with non-governmental organizations that haveexperience and expertise in working with farming communities in the countries
where coffee and other agricultural products are raised. Projects include
improving access to education and agricultural training, microfinance andmicrocredit services, improving biodiversity conservation, and increasing levelsof health, nutrition and water sanitation.

16

STRENGTHENING
COMMUNITIESDIVERSITY AND INCLUSION
The success of our business relies on the innovation that results frombringing together the diverse experiences, perspectives and backgroundsof the people who work with us. To further those efforts, we created theStarbucks Inclusion Council, comprising executives from key areas of
our enterprise, who set the strategic vision for Starbucks inclusion anddiversity efforts. That vision includes creating opportunities for historicallyunderrepresented populations both in our hiring and in our supply chain.
It includes a tenacious focus on pay equity, to ensure all our partners
are paid fairly for the work they do. It also strives toward accountability
that our most senior leaders represent the diversity of our partners andcustomers. Whether we are looking to enter new markets, grow in existingones or continue to drive innovation across our business, focusing on
diversity and inclusion is a business imperative.
INCLUSIVE WORKPLACE
There is no higher priority for our business than to attract, develop andretain talented partners. To accomplish this, we need to treat each otherwith respect and dignity, and create a culture of belonging where everyone
is welcome. Those are two of our highest values. When our partners cancome to work, be fully themselves and do their best work, we consider thatsuccess. Our nine partner networks, each highlighting an area of diversity,
represent the broad spectrum of our partners’ backgrounds and provide
an opportunity for people at all levels to connect, speak up and take onleadership roles.
Additionally, we offer the opportunity to build a career and support ourpartners’ personal goals through comprehensive benefits for both ourfull- and part-time partners ranging from health care and parental leave
to stock and the chance to earn a tuition-free college degree. Throughcommunity outreach, as well as by partnering with nonprofits, civic leadersand diverse professional associations at the local and national level,
we are working to make sure a diverse pool of talent has access to theopportunities we offer.

Our board of directors is now one of the most diverse corporate boardsin the country. At the end of 2016, 43 percent of our U.S. partners wereminorities; 66 percent were women. Of our U.S. vice presidents, 19 percent
were minorities and 48 percent were women. Among our top 60 leadersin the U.S., defined as senior vice president or higher, 18 percent wereminorities and 32 percent were women.
We continue to strive to do more to increase our diversity. That is why
we have established goals to increase the number of women and minorities
at the most senior levels of the company and continue to evaluate ourefforts in this regard. In addition, we will continue to engage and welcome
diverse job candidates and partners from all backgrounds to ensure we havea workforce that furthers our success.
DIVERSE SUPPLY CHAIN
Starbucks Supplier Diversity Program strengthens our supply chain andserves 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 aminority, woman, LGBT, veteran or person with a disability. By actively
seeking diverse suppliers, we both support our business and invest in thecommunities in which we do business. This not only helps us identify anddeliver high-quality, innovative products and services across all businesschannels, but also to drive value and economic development.
Since first reporting our spend with diverse suppliers in 2000­—then totaling$38 million—our program has grown to almost $700 million annually. Thisaccounts for approximately 10 percent of our total spend in the U.S. andCanada. We have set year-over-year growth targets with an ultimate goal ofachieving 15 percent of spend with diverse suppliers.
This comprehensive approach to supplier diversity ensures our programand goals are part of the foundation of our strategic sourcing process.
In addition to setting purchasing targets reflected in our supply chain goals,
our sourcing team proactively supports diverse supplier development.
Beyond simply identifying strong candidates, we actively coach and develop
suppliers who meet our diversity standards.

STRENGTHENING
COMMUNITIES

GOALS

17

FOODSHARE

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

COMMUNITY SERVICE

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

starbucks.com/social-impact

18
FROM OUR PARTNERS

Helping to End Hunger
in the Community
As a seven-year-old girl, Esther Ortega-Johnson often woke
up early on weekends during cold weather, bundled up in warm
clothes and made her way to downtown Los Angeles with family
members. Their journey was for a special purpose: to provide a
hot meal to anyone in need on the streets.
“My dad would organize my extended family to make tacos andhot chocolate and pass the food and beverages out to anyone
looking for something to eat,” said Ortega-Johnson, a store
manager and Navy spouse now living in San Antonio, Texas.
“That was my first experience with homelessness and hunger.”Soon more family members and friends learned about the effort
and joined in.
“We weren’t working for any particular organization, we were
simply helping people in need,” she said. “That’s how my parents
raised me and my siblings. If you’re able to provide for otherpeople, then it’s your responsibility to make sure that you do.”That experience as a child had a decided impact on OrtegaJohnson, who is one of several Starbucks partners supportingthe company’s effort to expand its FoodShare program in San
Antonio and Houston.
Through a strategic alliance with Feeding America, Starbucks
has set a goal to rescue 100 percent of food available to donate
from their more than 7,000 U.S. company-operated stores.
When the program rollout is complete, Starbucks estimates thatpartners in company-operated stores will be able to provide
50 million nourishing meals each year.

starbucks.com/responsibility

19
FROM OUR PARTNERS

Giving BackThrough Service
Starbucks partners have a long history of giving back to theircommunities through community service. For more than nine
years, partners in Beijing have supported Cinema for the Blind,a charitable project aimed at helping the blind better enjoy both
local and foreign films, by having volunteers narrate the onscreen
details.
As a Starbucks partner who lives and breathes the Starbucks
mission and values, Zheng Tao, an 11-year partner, is not only an
accomplished Coffee Master in the Starbucks North China region,
he also has always felt compelled to extend a helping hand to
the underprivileged around him. He has been volunteering withthe project for six years to effectively narrate and share more than
40 movies and contributing more than 9,000 hours.
“When my supervisor told me about Starbucks involvement
supporting the Cinema for the Blind project in Beijing, I jumped
immediately at the opportunity,” recalled Tao. “It was amazing to
be able to be the eyes for the blind, and to help them enjoy a movie
as I do.”In September 2016, Zheng Tao was honored, among someof China’s most influential business leaders, entrepreneurs
and technologists, as one of China’s top 50 innovators for his
contributions and commitment to Cinema for the Blind in Beijing.
This annual award, organized by China’s leading businesspublication, CBN Weekly, is today one of the most important
ranking for Chinese leaders in business, brand, technology anddesign, and aims to recognize, encourage and celebrate theirinnovation-led pursuits and aspirations.

20

GOALS Summary
AREA OF IMPACT

GOAL

F Y16

APRIL 2017 PRO GRESSSOURCINGCOMMITMENT

100% ethically sourced coffee

99%99% ethically sourced coffee

PLANTING TREES

Provide 100 million trees to farmers by 2025

9M

25 million trees donated through our One Tree for Every Bag
Commitment initiative

GLOBALFARMER FUND

Invest $50 million in farmer loans by 2020

$21.3M

We have $21.3 million currently committed or invested in farmer loans

OPEN-SOURCEAGRONOMY

Train 200,000 coffee farmers by 2020

new
goal

We offer current training to farmers through our eight Farmer Support
Centers and will begin reporting impact in the FY17 report

GREENER CUP

Double the recycled content, recyclability andreusability of our cup by 2022

new
goal

Our cups currently contain 10% post-consumer fiber (PCF),
we have front-of-house recycling in over 50% of our U.S. company-owned
stores and 1.4% of our beverages are sold using a reusable cup

GREENER STORES

Build and operate 10,000 greener storesglobally by 2025

1,000Over 1,200 LEED ®-certified stores in 20 countries

GREENER POWER

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

new
goal

We have purchased Renewable Energy Credits (RECs) to cover 100%of our electricity usage in global company-owned stores, and in April 2017
we announced an investment in a 260-acre solar grid in Robeson County, N.C.

GREENER APRONS

Empower 10,000 partners worldwide to besustainability champions by 2020

1,120

We have officially launched our Greener Apron™ program in four markets

VETERANS ANDMILITARY SPOUSES

Hire and honor 25,000 veterans and military
spouses by 2025

7,745

In March 2017, we met our initial goal of 10,000 hires andexpanded the goal to 25,000

STARBUCKS COLLEGE
ACHIEVEMENT PLAN

Graduate 25,000 partners by 2025 andincrease accessibility and performance

227

More than 400 partners have graduated to date with over
6,500 partners participating in ASU’s online degree programs

OPPORTUNITY YOUTH

Embrace and employ 100,000 Opportunity
Youth by 2020

REFUGEES

32,096

In 2015 we set a goal to hire 10,000 Opportunity Youth;
we surpassed this goal within the first year and expanded
our goal to 100,000 by 2020

Welcome and employ 10,000 refugees
globally by 2022

new
goal

In January 2017, we announced our commitment to hire
10,000 refugees across the 75 countries we serve; we will
share our progress in the FY17 report

FOODSHARE

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

new
goal

The FoodShare program was announced in FY16 and began
its rollout; to date, we have donated over 1 million meals

COMMUNITY SERVICE

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

new
goal

We established our baseline of 25,000 stores and will trackprogress going forward

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CONSERVATIONINTERNATIONAL“Providing healthy trees to farmers
in coffee-growing regions makes
existing lands more productive
and keeps us from expanding
into forests. We’re proud to standalongside Starbucks in this longterm endeavor to ensure that both
livelihoods and nature around theworld are vibrant and healthy.”Dr. M. Sanjayan
executive vice president andsenior scientist

THE CLIMATE GROUP“RE100 members like Starbucks
are going beyond simply ‘meetinga target’—they are rewriting therulebook for energy purchasing.
Starbucks investment in solar
infrastructure and breakthroughgreen tariff demonstrate thecompelling business case forrenewable electricity. Their
dynamic, collaborative andinnovative approach is setting
an example to businesses andutilities across America, while
showing millions of customers
that Starbucks is serious aboutslowing climate change.”

INTERNATIONALRESCUE COMMITTEE“The IRC is thrilled to partnerwith Starbucks on their powerful
and impactful commitment tohire 10,000 refugees globallyover five years. One of the best
ways for a refugee to integrate
into a new community is throughemployment, and Starbucks
pledge to provide these muchneeded jobs will be a critical firststep toward our clients’ selfsufficiency.”

FEEDING AMERICA“Launching this partnershipwith Starbucks has been awatershed moment for our foodrescue efforts. We are committed
to identifying innovative
solutions for sourcing food.
Programs like FoodShare area step in the right direction.”
Diana Aviv
ceo

David Miliband
president and ceo

Sam Kimmins
head of RE100

starbucks.com/social-impact

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About this report.
SCOPE
Our report for fiscal 2016 focuses on our performance against the goals
we set in three key areas: ethical sourcing, environmental stewardshipand community investments. We’ve also included links to information
and resources publicly available at starbucks.com regarding our financial,corporate governance, workplace and diversity policies, and performance
because these commitments are directly tied to our business. In
developing this report, we’ve covered topics and issues that are important
to Starbucks and our stakeholders based on year-round engagement withand feedback from advocates and investors, and via easily accessible
customer and Starbucks partner tools such as My Starbucks Idea,
Starbucks social media channels (Starbucks and Starbucks Partners
Facebook, Twitter, Instagram) and our Customer Service team. These
efforts are complemented by industry and trend analysis conducted by
the strategic advisory firm SustainAbility and Edelman public relations,along with direct conversations with the many organizations we work with.
Ensuring both internal and external engagement is a critical componentof how we do business—we help ensure our programs, policies and thecontent of this report are material to our business and stakeholders.
BOUNDARIESAs with previous global responsibility reports, this year’s report highlights
the work we are doing in ethical sourcing, community investments andenvironmental stewardship. These areas are critical to our businessand are also where we know we can and do have the greatest impact.
Based on our stakeholder-engagement efforts, we also believe theseareas are important to our customers, our partners, non-governmentalorganizations (NGOs) and investors. In addition, issues related to healthand wellness and workplace policies are vital elements of our businessand of considerable interest to key stakeholders. While our commitments
are global, our reporting—with the exception of our coffee purchases—isfocused largely on Starbucks U.S. and Canada company-operated retailstores and global supply chain operations. These operations, together

with our coffee purchases, currently represent the most significant
segment of Starbucks social, environmental and economic impacts basedon the percentage of revenue and the number of stores 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 purposes of reporting on and tracking key performance indicators,
providing ongoing visibility into our operations and impacts enterprisewide, as well as for approval and audit purposes. We continue to work tovalidate and improve our global reporting efforts, so we can consistently
and accurately report on our performance.
REPORTING YEAR
Starbucks fiscal year 2016 (September 28, 2015–October 2, 2016),
unless otherwise noted.
CURRENCY
All references to currency are in U.S. dollars, unless otherwise noted.
PREVIOUS REPORTS
Starbucks has produced an annual report since 2001. Previous years’
global responsibility reports are available on our website.
INFORMATION INTEGRIT Y
Starbucks management is responsible for the preparation and integrityof the information reported for fiscal 2016. Through a system of internal
controls, including a comprehensive verification process involving internal
subject-matter experts, we believe this information accurately represents
our global responsibility activities and performance results for the fiscal
year 2016. External verification is provided by Moss Adams LLP.
All infographics related to our goal performance are visual representationsof progress and not to exact scale.

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FORWARD -LOOKING STATEMENTS
Our reporting on global responsibility for fiscal 2016 includes forwardlooking statements about the company’s business and its futurebusiness plans, initiatives, goals and objectives. These forward-looking
statements are based on currently available operating, financial andcompetitive information and are subject to a number of significant risks
and uncertainties. Actual future results may differ materially depending
on a variety of factors including, but not limited to, coffee, dairy andother raw material prices and availability; successful execution of thecompany’s blueprint for growth and other strategies; cost reduction andother initiatives; fluctuations in U.S. and international economies andcurrencies; the impact of competition; the effect of legal proceedings;
and other risks detailed in the company’s filings with the Securities andExchange Commission, including the “Risk Factors” section of Starbucks
Annual Report on Form 10-K for the fiscal year ended October 2, 2016.
The company assumes no obligation to update any of these forwardlooking statements.

We are in business 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.
starbucks.com/social-impact

We invite you to share your ideas with us at
MY STARBUCKS IDE A© 2017 Starbucks Coffee Company. All rights reserved. SBX17-257498