Starbucks
Use ofProceeds
ReportCovering the March 2017
Global Yen Sustainability BondStarbucks
Global Yen
Sustainability BondAt Starbucks, we believe in using our scale forgood, and having a positive social impact in thecommunities we serve. With our inaugural
March 2017 issuance of a ¥85 billion* ($763million) global sustainability bond, we made acommitment to investors to use the note’s
proceeds to support a positive social andenvironmental impact in our coffee supplychain.
This report marks a year from our first global
sustainability bond’s issuance, and we arepleased to report that all funds have been
deployed to eligible programs.
Proceeds from the issuance were used to elevatethe positive impacts of Starbucks coffee supply
chain through three programs:•C.A.F.E. Practices verified coffee purchases•The development and operation of Farmer
Support Centers•

Global Farmer Fund, providing loans tofarmers across the globe

As the first U.S. Corporate issuer of a Global
Sustainability Bond we hope to inspire others toinnovate on, and improve, the role of publiccompanies across the world.
*presented as USD throughout the remainder of the reportstarbucks.com/social-impact

Key PerformanceIndicators
Starbucks committed to reporting on theenvironmental and social impact of our bond issuance.
In addition to the disclosures we make in our annual
Global Social Impact Report, we identified
performance indicators, including the number of new
C.A.F.E Practices supply chains added, Farmer
Support Centers opened, Farmer Support Centers
operated, and C.A.F.E. Practices verified coffee
volumes sourced by region, which we have disclosed
below.

Key Performance Indicatorsfor reporting periodbetween March 17, 2017 and March 18, 2018
C.A.F.E. Practices supply chains added

66

Farmer Support Centers Opened

0Farmer Support Centers Operated

8Africa

Asia

SouthAmerica

NorthAmerica

Oceania

Starbucks used proceeds from theSustainability Bond to source a portion of thenearly 622 million pounds of coffee purchased
during the reporting period. The chart showswhere these coffee purchases originated, byregion.

Independent Accountants’ Report
To the Management of Starbucks Corporation:
We have examined management of Starbucks Corporation’s assertion included in theaccompanying Management’s Assertion Regarding Disbursements for Eligible Sustainability
Projects (“Management’s Assertion Report”) that the net proceeds of $763 million from theissuance of the March 2017 sustainability bond (the “Sustainability Bond”) were disbursed byStarbucks Corporation during the period from March 17, 2017 to March 17, 2018 for Eligible
Sustainability Projects in accordance with the Eligible Sustainability Project Criteria set forth inManagement’s Assertion Report (the “Criteria”). Starbucks Corporation’s management isresponsible for its assertion. Our responsibility is to express an opinion on management’sassertion based on our examination.
Our examination was conducted in accordance with attestation standards established by theAmerican Institute of Certified Public Accountants. Those standards require that we plan andperform the examination to obtain reasonable assurance about whether management’s assertionis fairly stated, in all material respects. An examination involves performing procedures to obtainevidence about management’s assertion. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material misstatementof management’s assertion, whether due to fraud or error. We believe that the evidence weobtained is sufficient and appropriate to provide a reasonable basis for our opinion.
In our opinion, management’s assertion that the net proceeds of $763 million from the issuanceof the Sustainability Bond were disbursed by Starbucks Corporation during the period from March17, 2017 to March 17, 2018 for Eligible Sustainability Projects in accordance with the Criteria set
forth in Management’s Assertion Report is fairly stated, in all material respects .

Seattle, Washington
August 6, 2018

Management’s Assertion Regarding Disbursements for Eligible Sustainability Projects
Starbucks is responsible for the completeness, accuracy and validity of the Use of Proceeds for Eligible Sustainability
Projects for the period from March 17, 2017 to March 18, 2018 in the table below. Starbucks management asserts thatthe net proceeds of $763 million from the issuance of the March 2017 sustainability bond (the “Sustainability Bond”)
were disbursed by Starbucks during the period from March 17, 2017 to March 18, 2018, for the Eligible Sustainability
Projects in accordance with the Eligible Sustainability Project Criteria detailed below.
Eligible Sustainability Project Criteria
Starbucks, or its subsidiaries, used the net proceeds raised by the issuance of the Sustainability Bond for Eligible
Sustainability Projects. These projects include purchases of Coffee and Farmer Equity (“C.A.F.E.”) Practices coffee,
projects related to Starbucks farmer support and agronomy research and development centers, and new loans
through Starbucks Global Farmer Fund.
Starbucks committed to annual reporting to track against our defined use of proceeds, and this report covers
disbursements for Eligible Sustainability Projects from the bond settlement date of March 17, 2017 to March 18, 2018.

Eligible Sustainability Projects

Project CriteriaC.A.F.E. Practices Coffee
Purchases

Funds used for coffee purchases from suppliers participating in C.A.F.E.
Practices

Farmer Support Center andAgronomy Research andDevelopment Center Projects

All development and operating costs (including capital contributions andreimbursement of operating expenses) for farmer support centers andagronomy research and development centers

Starbucks Global Farmer Fund
Loan Issuances

Financing of new loans through the Starbucks Global Farmer Fund which
provides loans for farmers across the globe

Use of Proceeds for Eligible Sustainability Projects from March 17, 2017 to March 18, 2018:
millions, USD

Net Proceeds from the Issuance of the Sustainability Bond
C.A.F.E. Practices Coffee Purchases$763.5($748.0)

Farmer Support Center and Agronomy Research and Development Center Projects($7.1)Starbucks Global Farmer Fund Loan Issuance($8.4)

Total Use of Net Proceeds for Eligible Sustainability Projects($763.5)

Percentage of Net Proceeds Funding Eligible Sustainability Projects

100%

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

More information can be found online at:(1)
C.A.F.E. Practices: https://www.scsglobalservices.com/starbucks-cafe-practices(2)
Starbucks Farmer Support Centers and Agronomy Research and Development Centers:
https://www.starbucks.com/responsibility/community/farmer-support/farmer-support-centers(3)
Starbucks Global Farmer Fund: https://news.starbucks.com/news/starbucks-more-than-doubles-global-farmer-loancommitment

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