GLOBALSOCIAL
IMPACTREPORTSTARBUCKS 2018

THE PURSUIT
OF DOINGGOOD
INTRODUCTION

REFLECTING ON OUR PROGRESS IN 2018

From the first time Starbucks opened
its doors in Seattle’s Pike Place Market
in 1971, we have been dedicated to
exceptional coffee and customer
service – and something more.

It started with our early travels tothe places where our coffee is grown,
understanding that our future is
inextricably tied to the futures of farmers
and their families. We nurtured personal
relationships and built a global networkof support to create a new way to
produce coffee: one that is sustainable,transparent and good for people and theplanet. As the threats of climate change
have grown, we have been working
to help coffee farms adapt and findinnovative solutions in how we buildand operate our stores, while reducing
the environmental impact of our cups,
straws and lids.
Our stores are often the heart of aneighborhood, and we strive to makeeach one a welcoming and inclusive
Third Place. As we have grown, so too
has our opportunity to make a positive
impact, from alleviating hunger throughour food donation program to making
investments in local partnerships andcoffee- and tea-origin communities
through The Starbucks Foundation.

Stitching all these efforts together is
a common thread – a green thread –one that is woven in the fabric of ourcompany by the more than 300,000
men and women who proudly wear thegreen apron. We are dedicated tomaking our partners proud, providing
pay equity and investing in their success.
And we are working to hire veterans andmilitary spouses, refugees, Opportunity
Youth and those formerly incarcerated,and helping them build their futures
once they are with us.
As it has been from the beginning,
our purpose goes far beyond profit.
We believe in the pursuit of doing good.

This report serves as a transparent
acknowledgement of our efforts: where
we have achieved and where we havefallen short, and the work still to come.
As we look ahead to our centennial
anniversary 50 years from now, we
hope to build an enduring company bystaying true to Our Mission and Values,
embracing new ideas and innovatingin ways that are meaningful to ourcustomers and inspiring to our partners.
We hope you will continue to join us on
this journey.

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IMPACTSUMMARYLEADING IN SUSTAINABILITYRESPONSIBLE COFFEE

Our vision is simple: to produce
sustainable coffee, served sustainably.
For more than two decades, Starbucks
has partnered with Conservation
International on C.A.F.E. Practices,
our ethical coffee sourcing program.
We now source 99 percent of ourcoffee this way, promoting quality,
economic transparency and social andenvironmental impact with a vision to
make coffee the world’s first sustainableagricultural product in the world.

Climate change represents significant
immediate and long-term risks tocoffee farmers around the world, andwe are taking steps to help ensure thesupply of high-quality coffee for future
generations. Core to ensuring the longterm sustainability of coffee is also
ensuring the economic profitability forfarmers. We are investing in innovation
to offer farmers new climate-resilient
coffee tree varietals and support coffeefarming communities through our Global
Farmer Fund to make sure farmers haveaccess to low-interest financing thatwill help them reinvest in their farms.
We continue to share what we havelearned with others through agronomy
training for farmers, whether they sell
to us or not. We are also supporting
women and families in coffee- andtea-growing communities throughStarbucks Foundation Origin Grantsthat are focused on strengthening theirleadership skills and income-generating
activities to diversify their income.
We’re also working toward a goal of
100 percent ethically sourced tea andcocoa for beverages by 2020. We areinvesting in sustainability, issuing ourthird sustainability bond in May 2019 forinvestors to participate in socially andenvironmentally focused projects andleveraging new technology to bringreal-time digital traceability to ourcoffee supply chain.

GREENER CUPS AND
PAC K AG I N GThere is perhaps nothing more
recognizable for the Starbucks brandthan our cup. Yet our cups and packaging
remain one of our biggest environmental
challenges. We are looking for new ways
to promote reusable cups and better
manage the lifecycles of disposable
ones. We are testing a variety of greener
cups that are both recyclable andcompostable in select cities throughthe NextGen Cup Challenge and arelaunching a lightweight strawless lid
with a hope to eliminate 1 billion
single-use plastic straws annually. Overthe past decade we have struggled with
our goal to significantly increase theuse of reusable cups in our stores. We
are continuing to test new ideas andapproaches to the challenge. In the
UK we conducted a trial of a 5-pence
disposable cup fee and a 25-pence
reusable cup incentive, which increased
reusable cup usage for hot drinks soldin stores nationwide from 2.2 to 5.8
percent.

“Starbucks is invested indeveloping solutions that seek
to improve the sustainabilityof their products. When
companies begin to rethinktheir plastic footprint,
innovation, research andmeasurement are the key
elements needed to set themon a path toward continuous
improvement,” said Erin Simon,
Director of Sustainability R&D
at the World Wildlife Fund.

GREENER STORESWe know that designing and building
green stores is not only environmentally
responsible, it is good business. We
already operate more than 1,600
LEED-certified stores around the world,
making us the world’s largest green
retailer. We are building on that legacy
by developing a new Greener Storeframework for 10,000 stores globallyby 2025, which could save $50 million in
utilities costs over the next 10 years.
And we’re empowering our partners
to help us in that effort by offering
sustainability certification throughour Greener Apron program.

GREENER POWER
Over the past two years, Starbucks has
committed to more than $140 million in
renewable energy to power our stores,
reducing our environmental impact andsupporting access to green power. It’senough to power 100 percent of ourmore than 9,000 company-operated
stores in the United States, and 77
percent of our global operations.
We plan to locally source more than
50 percent of our renewable energy
in the U.S by 2020, including from our
new solar farm in North Carolina, which
delivers enough clean energy to power
the equivalent of the energy consumed
by 600 Starbucks stores. And we arepartnering with developers to bring2
new projects
online, including a wind 1
farm planned near Olympia, Wash., and08a new wind farm in Illinois that will power
360 stores in that state, including thefuture Chicago Roastery.

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IMPACT SUMMARYLEADING IN SUSTAINABILITY
COFFEE & TEA

99%

E T H I C A L LY
SOURCED COFFEE95%

E T H I C A L LY
SOURCED TEA

Goal
100% ethically sourced coffee

Goal
100% ethically sourced tea by 2020

Description
For the fourth year in a row, more than
99% of our coffee was verified as ethicallysourced under C.A.F.E. Practices – that’s
nearly 650 million pounds of it. Although
we are constantly striving for 100%, it’sthat last 1% where some of our mostimportant work happens, bringing on
new farmers and cooperatives to help
ensure the long-term future of coffee.

Description
Our tea is verified as 95% ethicallysourced by third-party organizations
including the Ethical Tea Partnershipand Rainforest Alliance to ensure thetea Starbucks sources is produced withsustainable practices and under safeand humane working conditions.

31M$

TREES DISTRIBUTEDT O FA R M E R S

Goal
Provide 100 million trees to farmers
by 2025
Description
Starbucks has donated more than 31
million coffee trees over the past three
years (9.4 million in 2018) to farmers in
Mexico, Guatemala and El Salvador. These
climate-resilient trees replace ones thatare declining in productivity due to age
and disease, such as coffee leaf rust.

21.7M

INVESTED IN
FA R M E R L O A N S

Goal
Invest $50 million in farmer loans by 2020
Description
In 2018, loans reached thousands offarmers in 14 countries to strengthen theircoffee farms through tree renovation andinfrastructure improvements.

52K+ TFAR AR IMNEERDS

Goal
Train 200,000 coffee farmers by 2020
Description
Our expert agronomists have provided
free training to 52,240 coffee farmers
through our nine farmer support centersin coffee-producing countries aroundthe world in the past two years, including
27,938 in 2018. We will explore new ways
to further scale our efforts.

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IMPACT SUMMARYLEADING IN SUSTAINABILITY
GREENER CUPS
& PACKAGING

12

10%

NEW CUPTECHNOLOGIESP O S T- C O N S U M E R
FIBER

Goal
Develop 100% compostable andrecyclable cups by 2022

Goal
Double the recycled content of our cupsby 2022

Description
We are currently testing a dozen
promising cup technologies developed
through the NextGen Cup Challengewith the goal of creating an entirely
recyclable and compostable cup.

Description
Our hot cups currently contain 10% postconsumer fiber (PCF) and we are working
to double the recycled content.

Goal
Eliminate single-use straws worldwide by 2020

70%*

FEWER STRAWS

Description
Since we announced our intention to eliminate single use-straws in July 2018,
we developed and engineered a new strawless lid that eliminates the need for aplastic straw and reduces the amount of plastic by 9% versus the traditional lid andstraw. We have launched this strawless lid as the default for all iced beverages in
Seattle and Vancouver, with seven more major markets planned for summer 2019.
*Estimated reduction once fully implemented.

10

1.3%

Goal
Double the recyclability of our cupsby 2022

Goal
Double the use of reusable cups by 2022

MA JOR CITIE S CURRE NTLY+ RE
CY CLE OUR CUPS

Description
Our cups are accepted for recycling
in: Amsterdam; Boston; Dallas; Denver;
London; Louisville, Ky.; New York City;San Francisco; Seattle; Washington, D.C.;
and Vancouver, B.C.

BEVERAGES SERVEDIN PERSONAL CUPS

Description
In 2018, 1.3% of customers in companyoperated stores in the U.S., Canada and
EMEA received a discount for bringing theirown mug or tumbler, saving more than 42
million disposable cups. We are working
to find new ways to encourage customer
adoption of reusables, and to begin to
track for-here beverages in our reporting.

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IMPACT SUMMARYLEADING IN SUSTAINABILITY
GREENER STORES

1,600+

LEED-CERTIFIEDSTORES

Goal
Build and operate 10,000 greener
stores globally by 2025
Description
Starbucks has 1,612 LEED-certified storesin 16 countries, including all 50 U.S. states
and Puerto Rico. We are also developing
a new open-source framework to ensurethat all Starbucks stores are deliveringhigh standards of environmental
performance.

This year, we will launch the Greener
Store framework in 300 stores and will
be verifying that these stores are:• 100% powered by renewable energy• 25% more energy efficient• 30% more water efficient• Recycling and diverting waste• Sourcing responsible materials• Delivering a healthy environment• Empowering partners to besustainability champions

77%

GREEN ENERGYG L O B A L LY

Goal
Invest in 100% renewable energy to
power operations globally by 2020
Description
Starbucks purchases enough renewableenergy to power 100% of its more than
9,000 company-operated stores in the
U.S., Canada and the UK with clean
energy. Worldwide, more than threequarters of Starbucks operations are
powered by renewables.

7,200+ GP RA RE ET NN EE RR SA P R O N

GoalEmpower 10,000 partners worldwide tobe sustainability champions by 2020
DescriptionMore than 7,200 Starbucks partners
have enrolled in the Greener Apronsustainability training program throughthe Starbucks Global Academy with
Arizona State University in the UnitedStates, Canada and Britain.

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IMPACTSUMMARY
STRENGTHENING COMMUNITIESFrom the neighborhoods where ourstores are located to the fields where
our coffee is grown, we are dedicated tocreating and investing in opportunities
for people around the world. Our
mission: to inspire and nurture thehuman spirit – one person, one cup
and one neighborhood at a time.

Our commitment begins with cultivating
a culture of belonging for the more than
100 million people who come throughour doors each week. On May 29, 2018,
we closed more than 8,000 stores
across the United States so our partners
could join a learning session on race,
implicit bias and our recommitment to
the Third Place. As our ceo KevinJohnson said, this training session wasjust one step in a journey for us to growas a company that elevates equity,
diversity and inclusion in all we do. We
have developed additional training
modules, asked Arizona State University
to develop an anti-bias curriculum, andpublished a Civil Rights assessmentthat evaluates our ongoing efforts topromote equity, diversity and inclusion
for our partners, customers and thecommunities we serve.

We have designed stores to serve
specific community needs as well,including 12 Community Stores withyouth training in diverse, underserved
communities in cities like Dallas,
Birmingham, Ala., and Brooklyn, N.Y. Our
more than 50 Military Family Storesserve as a hub for U.S. active service
members, veterans, families andcommunities. Our Signing Stores, likethe one that opened in near Gallaudet
University in Washington, D.C. in
October 2018, are led by partners who
are fluent in American Sign Language.

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“What you have created here
is not just an opportunity for
employment and leadershipfor people who are Deaf anda way for them to show theirwonderful talents, but a place
where we will be able to see thevibrancy of our language,” said
Roberta Cordano, President ofGallaudet University.

Our stores are dedicated to serving
more than coffee – they also serve
the greater community. We encourage
all our stores to participate in service
projects, and thousands of partners haveanswered the call with 78,000 hours
in 2018 alone. Our partners have also
rescued more than 10 million pounds offood through our FoodShare program,
donating fresh, unsold meals to local
food banks in partnership with Feeding
America. The Starbucks Foundation has
supported organizations working tocreate job and education opportunities
for young people, including $1.3 million
in Opportunity for All grants in 2018.

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IMPACT SUMMARY

STRENGTHENING COMMUNITIESHIGHLIGHTS

10M+

66K+

MEALS
SHARED

Goal
Rescue 100% of food available to donate
by 2020 in company-operated stores in
the United States
DescriptionMore than 10 million meals have beenshared through our FoodShare program,including 7.4 million meals in 2018.
We are looking at ways to expand theprogram globally, with the effort now
underway in Canada and pilot programs
in Beijing and Shanghai.

HOURS OFCOMMUNITY SERVICE

Community service is a part of ourheritage, and our partners contributed
more than 66,000 hours of service to theneighborhoods they serve. We encourage
every store to take part in service in a
way that is relevant and impactful totheir communities.

60+

COMMUNITY & MILITARY
FA M I LY S T O R E S

Starbucks now operates more than
50 Military Family Stores near major
military bases across the United States,
connecting local veterans and theirfamilies to services and resources. We
have also opened 13 Community Storesin the U.S., Thailand and South Korea,
each serving the unique needs of theircommunities.

MAY 29, 2018

175,000

Starbucks took the unprecedented step of closing more than 8,000 storesin the United States for training and conversations about bias and inclusion.
This work continues through ongoing training sessions.

PARTNERS PARTICIPATEDIN ANTI-BIAS TRAINING

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IMPACTSUMMARY
CREATING OPPORTUNITIESWe believe opportunities thrive every
day in our stores. It’s inherent in ourvalues, the benefits that we provide forour partners, and the way we work to
make a difference in our communities
and around the planet. It is rooted inour belief that it is possible to do well in
the world and do well in business at thesame time.

We hope to not just create opportunity,
but equal opportunity. In March 2018 weannounced we had achieved 100 percent
pay equity for men and women andpeople of all races in the United States
performing similar work along with acommitment to achieve gender pay
equity in all company-owned markets
globally. We announced 100 percent
gender pay equity in Canada and China
one year later, and have joined the
Employers for Pay Equity consortium tohelp close the U.S. gender pay gap. We
strive to make our workplace an inclusive
one, supporting our DACA partners
and all Dreamers and efforts to offer asecond chance to Americans who havebeen incarcerated. We have expanded
benefits for transgender partners andbeen recognized as a top employer for
LGBTQ workplace equality.

“Strong leaders lead by example
and Starbucks is one of thestrongest leaders in the fightfor equality and inclusion,” said
Billie Jean King.

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We have made a series of hiring
commitments to welcome newpartners from communities that may
experience barriers to employment,with goals to hire 25,000 veterans andmilitary spouses; 10,000 refugees; and100,000 young adults not currently
working or in school.
And we’re finding new ways to engage
partners in meaningful initiatives. We
recently completed a six-month pilot
for the Starbucks Service Fellows with
36 Starbucks store partners working 20
hours in their store each week while
spending another 20 hours with a local
nonprofit. These models will inform
how we catalyze our partners to build
enduring change in our communities.

We are investing in pathways toopportunity through employment,
education and training. Since
Starbucks began offering partners
an online bachelor’s degree program
through Arizona State University withfull tuition coverage, more than 2,400
have graduated and 12,000 moreare currently enrolled. There is norequirement to stay with the company:
graduates are free to pursue their
dreams wherever they take them.

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IMPACT SUMMARY

CREATING OPPORTUNITIESHIRING

22K+

VETERANS ANDMILITARY SPOUSES71K+

OPPORTUNITY
YOUTH

Goal
Hire 25,000 veterans and military
spouses by 2025

Goal
Employ 100,000 Opportunity Youthby 2020

Description
Since 2013, we’ve hired 22,500 veteransand military spouses, including 3,000
in 2018, and reached the milestone of
50 Military Family Stores.

Description
Since launching the 100,000
Opportunities Initiative coalition withother employers in 2015, Starbucks has
hired 71,145 Opportunity Youth, 16- to
24-year-olds who are out of work andnot in school.

1,600+REFUGEES

Goal
Employ 10,000 refugees globally by 2022
Description
We have welcomed and hired 1,672
refugees in the United States, Canada
and Europe. We rely on partners to
self-identify, which leads us to believe
the total number of refugees hired is
actually much higher.

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IMPACT SUMMARY

CREATING OPPORTUNITIESE Q U I T Y, D I V E R S I T Y& INCLUSION

42%
19%

SENIOR LEADERS
ARE WOMENSENIOR LEADERS AREPEOPLE OF COLOR

Goal
At the senior leadership level, 50% womenand a 50% increase in representation bypeople of color over 2015
Description
Among our senior leaders (senior vicepresidents and above) 42% are women,
an increase of 13% since 2015, and 19%
are people of color, which is the same
percentage as 2015. We have seen an
increase in representation for people ofcolor at the vice president and director
levels since 2015.

100%

PAY EQUITY IN U.S.;
GENDER EQUITY IN PAY
IN CANADA AND CHINACOLLEGE

Goal
100% global gender pay equity in U.S. and company-owned markets
Description
We have reached 100% percent pay equity for partners of all genders andraces performing similar work across the United States from 2017-2019. In
March 2019, we announced that we have achieved gender pay equity in
Canada and China. We have also joined with other U.S. companies to help
eliminate the gender pay gap nationwide.

2,400+DIPLOMAS

Goal
Graduate 25,000 partners by 2025
through the Starbucks College
Achievement Plan
Description
12,000 partners are currently enrolled
in the program and 2,400 partners haveearned a bachelor’s degree since 2014.
We are also building accessibility andimproving performance through our
Pathways program.

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ABOUTTHISREPORT

CONCLUSIONSCOPEREPORTING YEAR

Our report for fiscal 2018 focuses on our
performance against the goals we set inthree key areas: leading in sustainability,
strengthening communities, and creating
opportunities. These areas are critical to
our business and are also where we know
we can and do have the greatest impact.
We’ve also included links to information
and resources publicly available atStarbucks.com regarding our financial,corporate governance, workplace anddiversity policies and performance,
because these commitments are directlytied to our business.

Starbucks fiscal year 2018 (October 2,
2017–September 30, 2018), unlessotherwise noted.

Starbucks is committed to the United
Nations Sustainable Development
Goals and uses these goals as a lensfor our social impact programs andcollaborations with others. Based on
our stakeholder-engagement efforts,
we also believe these areas areimportant to our customers, ourpartners, non-governmentalorganizations (NGOs) and investors.
While our commitments are global,
some reporting reflects results for
specific markets where noted. We
continue to work to validate andimprove our global reporting efforts,
so we can consistently and accurately
report on our performance.

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

PREVIOUS REPORTS
Starbucks has produced an annual global
social impact report since 2001. Previous
years’ annual reports are available on
our website.

I N F O R M AT I O N I N T E G R I T Y
Starbucks management is responsible
for the preparation and integrity of theinformation reported for fiscal 2018.
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. Externalverification is provided byMoss Adams LLP.

F O RWA R D - LO O K I N GS TAT E M E N T S
Our reporting on global responsibility
for fiscal 2018 includes forward-looking
statements about the company’sbusiness and its future business plans,
initiatives, goals and objectives. These
forward-looking statements are basedon currently available operating, financial
and competitive information and are
subject to a number of significant risks
and uncertainties. Actual future results
may differ materially depending on
a variety of factors including, but notlimited to, coffee, dairy and otherraw material prices and availability;
successful execution of the company’s
blueprint for growth and other strategies;
cost reduction and other initiatives;
fluctuations in U.S. and international
economies and currencies; the impact
of competition; the effect 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 September 30, 2018.
The company assumes no obligation to
update any of these forward-looking
statements.

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