Starbucks Global Responsibility Report – Goals and Progress 20122012 Global Responsibility Report: Year in Review

Each Starbucks is part of the fabric of the neighborhood it serves. Although we are a global
company with stores across the globe, each interaction is local. Starbucks is a gathering place, aplace to connect, a barista offering a cup of coffee with an outstretched hand.
Since our first store in 1971, we have felt a responsibility to make

Unfortunately, many people have disengaged from theira positive impact one person, one cup and one neighborhood at a

communities. Although they may desire change, and they may

time. As we have grown to now more than 18,000 stores in over 60

want to make a difference, they are often unsure of how andcountries, we recognize that commitment to corporate citizenshipwhere to start. We are working to engage and activate theseis also a business imperative. We can use our scale for good, andindividuals with our Youth Leadership Grants program. Our

catalyze change across entire industries so that Starbucks andeffort now reaches more than 50,000 young people each year,

everyone we touch can endure and thrive.

creating innovative and positive solutions to local needs whileempowering young people.

On a global level, we are trying to be innovative in how wethink about communities. We go beyond the impact of a single

At our Farmer Support Centers, we work one-on-one withcompany, to energize and activate our employees – who we callfarmers to help them manage their businesses more effectively,

partners – along with our customers, suppliers and nonprofit

improve the quality and productivity of their crops, and provide

partners. Our annual Global Month of Service is a great example,

social services to their workers. By making these investmentswith more than 230,000 hours of service and 2,100 projects

in human capital, we create ripples of change in thousands ofcompleted in April 2012, and with plans to expand in new

farming communities.

directions in 2013.
Our annual Global Responsibility report is a moment to reflect
We are seeing the impacts of climate change on our planet andon the impact we’ve made over the past year. But more than

are working to minimize our own environmental footprint. We arereporting on past progress, it’s an opportunity to be morealso helping our farmers run their businesses in an environmentallyintentional and focused about what we can do in the future.

mindful way, making adjustments to ensure the viability of their

While there are challenges to operating such a complex,

businesses despite shifting growing conditions.

expanding global business as ours, we will continue to balance
local relevance with our global reach. You have our commitment

In 2012, we demonstrated the power that happens when ourthat we will continue to push ourselves in new ways.

partners and a community come together. We opened our third
community store in Houston, Texas, and helped a city take hold of

I invite you to learn more about our 2012 goals and progress

its own destiny. In the words of one neighbor, “You have changed

and welcome your feedback and ideas.

our neighborhood forever. It’s because people see this going on
and now they will be more likely to take action themselves.”

Blair Taylor
chief community officer

We know global change ultimately resides in the power of eachindividual.
1

Starbucks Global Responsibility Report – Goals and Progress 2012

Message from Howard Schultz
In business, success is most often measured by numbers.
Store counts. Revenues. Comps. For Starbucks, these
metrics are important indications of how we are growing
our brand and returning value to our shareholders.
But equally important to the value we create are the values we live by.
We’ve been building a company with a conscience for more than four
decades, intent on the fair and humane treatment of our people as well as thecommunities where we do business, and the global environment we all share.
We are proud of our heritage. Yet never before have we seen the marketplace
and today’s consumers have such a deep interest in and knowledge about
what companies stand for and how they are living up to their promises. Not only is standing for something beyond
making a profit the right thing to do, it is the way business must be conducted in the 21st century. Only by doing businessthrough the lens of humanity can an organization establish a crucial reservoir of trust with its people and its customers. At
Starbucks, it is a trust we must earn every day.
For these reasons, we continue to broaden our ethical sourcing programs. Today, we are proud that more than 93% of
our coffee meets our standard on this front. And through our enhanced sourcing efforts for cocoa, tea and manufactured
products, we are making a more positive impact than ever before.
Just as Starbucks does not accept the status quo in our business, and proactively embraces innovative products and ideas,
we also look for and champion freshinventive ways to use our existing assets and resources beyond business. In 2012,
we appointed renowned community advocate and entrepreneurial leader Blair Taylor to serve in our newly created roleof chief community officer. A true visionary, Blair leads our community, partner resources, government relations, diversity
and global responsibility teams. As a member of Starbucks senior leadership team, he is helping to ensure the company
continues to make meaningful differences in communities around the world.
Once again, Starbucks is refusing to be a bystander as the world around all of us changes. I would like to take thisopportunity to extend my heartfelt thanks to our partners, customers, business partners, farmers and suppliers for their
extraordinary dedication to the hard work and humanity that embodies the spirit of Starbucks.
Thank you for joining us on the journey.
Warm regards,

Howard Schultz
chairman, president and chief executive officer

2

Starbucks Global Responsibility Report – Goals and Progress 2012

Ethical Sourcing

We have taken a holistic approach to ethically sourcing our products – fromthe coffee we serve our customers to the green aprons worn by our baristas.
We strive to cultivate lasting relationships with the people who grow our
products and create our manufactured goods as we work together to produce
high-quality, ethically sourced products.
Our approach includes responsible purchasing practices, farmer support efforts, social responsibility standards for
suppliers, and environmental programs. We know that our supply chain is vast, and we have an opportunity to use its
scale to make positive changes industry-wide.

GOAL

PROGRESS

Ensure 100% of ourcoffee is ethicallysourced by 2015

93% of our coffee was
ethically sourced in 2012,
including 90% throughC.A.F.E. Practices.

Total coffee purchases

428

545

Total ethically sourced
coffee purchases

367

509

86%

93%

100%

2011*

2012

2015

(in millions of lbs)

(in millions of lbs)

ON TRACKWe define ethically sourced as coffee
that is third-party verified or certified,either through C.A.F.E. Practices,
Fairtrade or another externallyaudited system.

Includes green coffee purchases for all Starbucks brands.
*2011 results include C.A.F.E. Practices only.

GOAL
CoffeePROGRESS

We are committed to buying and serving high-quality coffee that is responsibly grown and ethically traded. We honor
this commitment through our responsible
coffeepurchasing
practices, farmer support centers, loan programs andWe
increased
our loan
Invest in farmers andforest conservation efforts. When we buycommitment
coffee this way,
we believe that it helps foster a better future for farmers andto $15.9
2012
theircommunities
millionforwith$1.3 million
helps
mitigate
the impacts of byclimate change
the aplanet.
$15.9M

increasing farmer loans
to $20 million by 2015

investment to the Fairtrade
Access Fund.
ON TRACK

$

2015
$20M
2011
$14.7M

3

Starbucks Global Responsibility Report – Goals and Progress 2012
The cornerstone of our approach is Coffee and Farmer Equity (C.A.F.E.) Practices, our comprehensive coffee-buying
program that ensures coffee quality while promoting social, economic and environmental standards. C.A.F.E.
Practices, which we developed in collaboration with Conservation International (CI) a decade ago, has createdsignificant social and economic impacts for more than one million workers, and environmental improvements on thethousands of participating farms.
Farms and mills are evaluated using a comprehensive scorecard of more than 200 indicators by third-party
verification organizations, which are overseen by SCS Global Services. In 2012, 90% of our coffee was C.A.F.E.
Practices verified.
Purchasing third-party certified or verified coffees not only meets our customers’ expectations, but can also help
protect the environment and the livelihood of farmers in coffee-growing regions. We have offered Fairtrade coffee
since 2000, and remain one of the largest purchasers of Fairtrade certified coffee in the world. In 2012, 44.4 million
pounds (8.1 %) of our coffee purchases were Fairtrade certified. We also purchased 8.7 million pounds (1.6%) ofcertified organic coffee in 2012.
In 2012, 93 % of our coffee was ethically sourced through C.A.F.E. Practices, Fairtrade and/or other externally verified
or certified programs, with some coffees receiving multiple verifications or certifications. It is our goal that by 2015,
100 % of our coffee will be sourced this way.
Another important component of our approach is a green coffee pricing model that aims to pay the prices premium
quality commands, while fostering price stability and mutually beneficial relationships with suppliers. Starbucks
sourced 545 million pounds of premium quality green (unroasted) coffee from 29 countries in 2012, and paid anaverage price of $2.56 per pound. In 2012, 98% of our contracts included an economic transparency clause.

Tea
In a similar way we approach responsible coffee sourcing, we are committed to a long-term strategy of ethical tea
sourcing, which includes helping support farmers and their communities throughout our tea supply chain. We havebeen working with the Ethical Tea Partnership (ETP) since 2005 to collaborate with others in the tea industry, and to
make sure that our tea is produced in a socially responsible way. In 2012, we strategically sourced from estates thatare a part of the ETP program and subject to third-party independent audit on the social and environmental criteria
outlined in the ETP Global Standard.
Our work with ETP is complemented by our support of the CHAI (Community Health and Advancement Initiative)
project with Mercy Corps. In 2012 we celebrated the 10-year anniversary of CHAI. Since 2003 CHAI has directly
impacted 75,000 people and their families in more than 200 farming communities in India and Guatemala.

Cocoa
Our approach to buying cocoa is also based on a commitment to ensuring a long-term supply of high-quality,
ethically sourced cocoa while contributing positively to the environment and to cocoa-farming communities.
Our Cocoa Practices program seeks to verify the supply chain for the cocoa beans used in our beverages, withinspections performed by independent verifiers overseen by SCS Global Services.

Store Merchandise
We’re also committed to social responsibility standards for the merchandise, furniture and other items found in ourstores. We’ve set strong standards for our suppliers and offer them assistance when corrections need to be made totheir business practices. Adherence to those standards informs our sourcing decisions and ensures we are working
with suppliers who share our commitment to ethical sourcing. Our buyers work directly with suppliers, negotiating
contracts for the products we need in our operations or sell to our customers.
In 2012 we assessed 128 factories and found that 36 of them failed our zero-tolerance standards. Even though ourapproach is to work with suppliers to correct the issues, there are times when we halt business due to the natureof the issues and until adequate resolution takes place. While we were able to implement improvement plans withalmost half of these factories, we discontinued working with 15 factories as suppliers for standards issues. Since
starting the program in 2006, we have engaged in more than 500 factory assessments and continue to work withmore than 70 factories on programs to improve standards.
4

Starbucks Global Responsibility Report – Goals and Progress 2012
We are continuing to collaborate with others in our industry to address ethical sourcing best practices in our shared
supply bases. Starbucks is a member of the Global Social Compliance Program, a business-driven effort to promote
GOAL
PROGRESSthe continuous improvement of environmental and working conditions of global supply chains.

FarmerSupportEnsure 100%of our428
Total coffee purchases
93% of our coffee was(in millions of lbs)
ethically sourced in 2012,
We
know ouras a company is linked to the success of the thousands of farmers who grow our coffee.
coffeeis successethically
including 90% through367
Total ethically sourced
coffee purchases
C.A.F.E. Practices.
sourced by 2015

545
509

(in agronomists
millions of lbs)
Starting in 2004 with our first farmer support center in Costa Rica, Starbucks
collaborate directly withcoffee farmers to encourage responsible growing
practices and improve the quality and size of their harvests. We
ON TRACK
86%
93%
have continued to expand the program, and share our coffee knowledge with farming communities through our
We defineoffice
ethically
as coffee
satellite
insourced
GuatemalaCity and additional farmer support centers in Kigali, Rwanda, and Mbeya, Tanzania. In
that is third-party verified or certified,2012
openednewcenters in Manizales, Colombia, and Yunnan Province, China. Ultimately, these efforts can help
eitherwethrough
C.A.F.E.
Practices,
Fairtrade or another externally
farmers
earn better prices and become more resilient, long-term producers.
2011*
2012
audited system.

100%

2015

Includes green coffee purchases for all Starbucks brands.
*2011 results include C.A.F.E. Practices only.

GOAL

PROGRESS

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

We increased our loan
commitment to $15.9
million with a $1.3 million
investment to the Fairtrade
Access Fund.

2015
$20M
2012
$15.9M2011$14.7M$

ON TRACK

Commitment is defined as being made either by public declaration of intent orsigned contract.

GOAL

Farmer Loans

PROGRESS

Providing access to credit at reasonable terms is a critical aspect of our farmer support model. Our goal is to invest in
We focusedon loans
providing
Improve
farmers’
farmers
and theircommunities by increasing
our farmer
to $20 million by 2015.

agricultural best practices

access to carbon
which will help farmers
Inmarkets,
2012, we increased
our totalcommitment
to respond$15.9 million,
includingbetterand/oradapt an additional $1.3 million placed in the Fair
helpingthem
Trade Access Fund set up by Incofin Investment
Management,
GrameenFoundation and Fairtrade International.
to regional climate changes,
generate additionaland have expanded our
incomewhile
to toBrazil.
Thefund provides
financial and technicalprogramassistanceaddress the needs of smallholder farmers by investing inprotecting
Fairtrade
producertheorganizations and cooperatives.
Chiapas, Mexico
ON TRACK
environment

Sumatra,Indonesia

The fund represents a unique collaboration between a social investment firm and two global Minas
nonprofits
Gerais, that
Brazil focus on
helping rural communities in developing countries.
The fund launched in Latin America in 2012 with farmers in multiple coffee-growing countries. By investing inprograms that provide access to credit, we’re helping farmers manage risk and strengthen their businesses. Looking
forward, we are exploring innovative relationships to help us better leverage the loans in concert with our technicalsupport, social development investments and coffee purchases. The fund will also expand into the Africa andAsia-Pacific farming regions.

5Starbucks Global Responsibility Report – Goals and Progress 2012

Reducing Our Environmental Impact

Our comprehensive approach to reducing our environmental impact means
looking at all aspects of our business, how they intersect, and how we canintegrate new solutions to create meaningful and sustained change.
Beyond the proactive efforts within our control, the realities of climate change are a growing challenge, and we felt
the impact during 2012 – the hottest year on record. From coffee-growing conditions in Costa Rica to the increased
electricity needed to power our stores, we need to consider the global impact of our actions.
By building more energy-efficient stores and facilities, conserving the energy and water we use and purchasing
renewable energy credits, we are pushing ourselves to reduce the environmental footprint of our business operations.
We are also working in critical areas of our supply chain to mitigate our impacts and adapt to a changing climate. This
is to ensure the long-term sustainability of our business and the health of the communities we touch.
But it’s about more than just our operations and supply chain. We are also working to shrink our environmental
footprint and meet the expectations of our customers by reducing the waste associated with our cups, increasing
recycling and incorporating green design into our stores.
We also know that the magnitude and complexity of addressing climate change requires us to think beyond theactions of our own company. As a result we are committed to continue using the power of our voice to champion
progressive climate policies in partnership with other like-minded businesses and organizations.

6

BASELINE
Water consumption decreased
Reduce water
17.6%
slightly in 2012, bringing us
Decrease
consumption
by Responsibility
25%
Starbucks
Global
and Progress 2012
to a totalReport
decrease–ofGoals
17.7% sincein our company-owned 2008.
stores by 2015

17.7%
Decrease
25%
Decrease

Greener Stores

ON TRACKWe know that more than 80% of our direct and indirect greenhouse gas emissions come from the energy used to
power our stores, offices and roasting plants. We are intently focused on improving the environmental performance of
2008
2011
2012
our facilities and more than 18,000 stores with green store design and energy and24.35
water
gal conservation
20.11 galstrategies.
20.08 gal2015
18.27 gal

Average water use per square foot/store/month U.S. and Canada company-owned stores.
Percentage change to the 2008 baseline.

GOAL

PROGRESS

Build all new,company-owned
stores to achieve®
LEED certification

We have achieved LEED
certification for 116 stores in
12 countries and we are
addressing specific geographic
challenges in our high growthmarkets.

75%

69%

2011

2012

IN PROGRESS

Percentage of new company-owned stores built to achieve LEED® certification.

LEED Certification
Starbucks has been a leader for more than a decade in the development and implementation of a scalable green
building program for retail companies like ours.
We joined the U.S. Green Building Council (USGBC) in 2001 and collaborated with them to help develop the LEED®
(Leadership in Energy and Environmental Design) for Retail rating system, an effort that incorporated retail businessstrategies into the LEED for New Construction and Commercial Interiors rating systems.
We opened our first LEED-certified store in 2005. In 2009 Starbucks became one of the first retailers to join USGBC’s
LEED Volume Certification pilot program.
As the first retail company to take this building approach globally, we’ve experienced success in some geographic
areas and challenges in others. In 2012, we built 69 percent of our new global company-owned stores to achieve LEED,
but had difficulty applying LEED in regions where the program is not as established. Going forward, we will explore
additional strategies to bring 100% of our stores to a sustainable building standard.

7

reduction goal by 2015.
ON TRACKStarbucks Global Responsibility Report – Goals and Progress 2012GOAL

PROGRESS

ReduceGOAL energy
consumption by 25%
in our companyPurchase renewable
owned stores by 2015
energy equivalent to100% of the electricity
used in our global
company-owned
stores by 2015

PROGRESS2012 contributed to just over

2008

2011

2012

2015

6.8 KWH

6.29 KWH

6.36 KWH

5.10 KWH

Average electricity use per square foot/store/month U.S. and Canada companyowned stores. Percentage change to the 2008 baseline.

BASELINE

While extreme weather ina 1% increase in electricity
consumption from the year
We
continue
to purchasethebefore,we haveplans in place
equivalentof over 50%of theto help us achieve
our 25%electricity
in ourglobalreduction usedgoal by
2015.
company-owned stores.

558 Million
KWH

50.4%

2011

586 Million
KWH

51.0%

2012

2008
6.8 KWH

PROGRESSGOAL
Reduce water
consumption by 25%
Purchase
renewablein
our company-owned
energyequivalent
tostores by 2015
100% of the electricity
used in our global
company-owned
stores by 2015

PROGRESS
Water consumption decreased

2011
100%
6.29 KWH

ON TRACKON TRACK20122015 20156.36 KWH

5.10 KWH

Average electricity use per square foot/store/month U.S. and Canada companyowned stores. Percentage change to the 2008 baseline.

BASELINE

slightly in 2012, bringing us
tototal decreaseof 17.7%
Wea continue
to purchasethesince
2008.
equivalent of over 50% of theelectricity used in our global
company-owned stores.

6.5%
Decrease
25%
Decrease

ON TRACKON TRACK

GOAL

7.5%
Decrease

17.6%
Decrease

17.7%
Decrease
25%
Decrease

558 Million
KWH

50.4%

586 Million
KWH

51.0%

2011
2012

2008

2011

2012

2015

24.35 gal20.11 gal

20.08 gal

18.27 gal

100%

2015

Average water use per square foot/store/month U.S. and Canada company-owned stores.
Percentage change to the 2008 baseline.

PROGRESS
GOAL
GOAL
Conserving
Energy andPROGRESS
Water
Water
consumption
decreased stores by 2015. Since then, we’ve
water
InReduce
2008, we set
a goal to reduce electricity
use by25% in company-owned
17.6%
17.7% 75%
slightly in 2012, bringing us
69%
We haveachieved
LEED
implemented
numberenergy initiatives
and haveseen electricity
use decrease by a total of Decrease
6.5%. Despite
these
Decrease
consumption
byof 25%
Build
all anew,to a total decrease of 17.7% sincecertification
for to116
storesin due to record-breaking temperatures in theefforts, electricity use in 2012 increased 1.1%
compared2011,
mainly25%
in our company-owned 2008.
company-owned
12 countries and we are
Decrease
U.S. that caused our stores’ air conditioners to run more than usual.
BASELINE

addressing specific geographic
by achieve
2015
stores tochallenges in our high growth®
certification
LEED
Last
year wasone focused on testing andvalidating new, effective energy conservation solutions for our stores. In themarkets.
ON TRACK
next two years we’ll be bringing those provenstrategies to scale to meet our goals. One example: installing energy
management systems and hybrid water heaters
to heat our water and cool our stores.
IN PROGRESS
2008
2011
2012
24.35 gal20.11 gal2015

20.08 gal

18.27 gal

Water is a key ingredient in our beverages and a necessity for operating ourAverage
stores.
We’ve
a numberwater
use peridentified
square foot/store/month
U.S.ofand Canada company-owned stores.
the 2008 baseline.
opportunities to use this precious resource more wisely and have spent the Percentage
last few change
yearstotestingand validating these
2011
2012
solutions.

GOAL

PROGRESS

Percentage of new company-owned stores built to achieve LEED® certification.

In 2008 we set a goal to reduce water consumption by 25% in company-owned stores by 2015. Over the past four
years, we have cut water consumption by 17.7% through several measures, including the use of efficient fixtures,
75%
LEED
activelyout and repairing storesWe
withhaveleaksachieved
and the eliminationof a continuously running faucet that rinsed our
Buildseeking
all new,
certification for 116 stores inutensils.

69%

company-owned
12 countries and we are
addressing specific geographic
storestoachieve
In 2011 webegan implementing an improved
process
for enhancing
the quality and consistency of our handcrafted
challenges
in ourhigh growth®
LEED certification
beverages.
While these changes required
morewater,
we
were
able
to
maintain the water conservation gains we hadmarkets.

made over the past four years by deploying new, more efficient water filtration systems in our stores. By the second
half of 2012, we began to see significant gains
from this new technology, and we hope we’ll continue to track toward
IN PROGRESS
our 2015 goal.
2011

2012

Percentage of new company-owned stores built to achieve LEED® certification.

8

2008

2011

2012

2015

6.8 KWH

6.29 KWH

6.36 KWH

5.10 KWH

Starbucks Global Responsibility Report – Goals andProgress
2012
Averageelectricity use persquare foot/store/month U.S. and Canada companyowned stores. Percentage change to the 2008 baseline.

GOAL

PROGRESS

Purchase renewableenergy equivalent to100% of the electricity
used in our global
company-owned
stores by 2015

We continue to purchase theequivalent of over 50% of theelectricity used in our global
company-owned stores.
ON TRACK

558 Million
KWH

50.4%

2011

586 Million
KWH

51.0%

2012

100%

2015

PROGRESS
GOAL
Investingin Renewable
EnergyIn addition to reducing our energy use, we’re increasingly focused on advancing renewable energy sources through
BASELINE
Water
ourpurchasing
practices. We’re hoping to
helpconsumption
transform the decreased
energy landscape by
supporting the development of theReduce
water
17.6%
17.7%
slightlyin2012,
bringingusrenewable
powermarket.
Decrease
Decrease
consumption by 25%

to a total decrease of 17.7% since25%
in our company-owned 2008.
Decrease
The Renewable Energy Credits (RECs) we purchase encourage the development of new clean-energy sources bystoreswind-farmby 2015
providingowners with additional revenue. In turn, that helps sell electricity at prices competitive with power

plants that use fossil fuels.
ON TRACKIn 2011 we began working toward a goal to purchase RECs equivalent to 100% of the electricity used in our company2015
2008
2011
2012
owned stores globally by 2015. For two years running, we have purchased renewableenergy equivalent
to morethan
24.35 gal20.11 gal
20.08 gal
18.27 gal
50% of the electricity used in our company-owned stores worldwide.
Average water use per square foot/store/month U.S. and Canada company-owned stores.
Percentage change to the 2008 baseline.

Innovating in Recycling and Food Packaging

PROGRESSGOALrecycling in our stores and ensuring
Providing
the recyclability of our cups is a foremost priority for Starbucks andour customers. We’ve offered a cup with 10% post-consumer recycled paper fiber since 2006. And we keep working
to decrease the materials used in our packaging, find new ways to encourage reusables and implement recycling75%
We have achieved LEED
Build all new,solutions for our cups.
certification for 116 stores in69%

company-owned
12 countries and we are
addressing
specific
geographic
Our
approachto not only provide customers
with cup
choices
for their beverages, but to also collaborate withstoresto isachieve
challenges
in
our
high
growth®
othersto create
locally relevant improvements in the recycling infrastructuresof communities where we operate.
certification
LEED
markets.

We are doing that by taking a close look at the materials we use and opportunities for material reuse in the future.
IN PROGRESSIn 2012 we introduced the EarthSleeve™ to Starbucks locations across the United States and Canada. This new
hot-cup sleeve requires fewer raw materials to make, while increasing the amount of post-consumer content. These
adjustments correlate to a savings of nearly 100,000 trees a year and we are working to roll out EarthSleeve globally.
2011

2012

Percentage of new company-owned stores built to achieve LEED® certification.

9

Starbucks Global Responsibility Report – Goals and Progress 2012GOAL

PROGRESS

Developcomprehensive
recycling solutions forour paper and plastic
cups by 2012

While we proved therecyclability of our cups in U.S.,
Canada, UK and Germany, andcontinue to expand recycling in
those countries, we are stillworking toward materials and/or
infrastructure solutions for our
remaining company-owned
markets.

DesignCollection

IN PROGRESS

Infrastructure

GOAL
PROGRESS
Finding
Solutions
GOAL Cup RecyclingPROGRESS

Because recycling infrastructure varies widely in countries around the world – even from one city to another – a oneprovedwith
the stores in more than 60 countries.
size-fits-all
approach does not work for aWhile
globalwebusiness
Develop100%
In 2012, we increased
therecyclabilityof our cupsin U.S.,
Implement
comprehensive
Designavailability
front-of-store
2015
Canada, UKofand
Germany, andWe
have proven that our used cups can be accepted in a variety of recycling systems, and we are bringing this tofront-of-store
recyclingbyanadditional453
continuetoexpandrecyclinginrecycling solutions forscale in the United States, Canada, the United
Kingdom
Germany.
storesin the U.S.andand
Canada.
those countries,
wearestill We are developing material and infrastructure
recycling
inand
ourplastic
our paper
Percent
locationsby 2015.
solutionsin additional
markets, working working
toward ourgoal toprovideand/or
all customers
accessof
tostorecup recycling
towardmaterials
company-owned
with front-of-store recycling
infrastructure
cups by 2012
ON TRACK solutions for ourstoresremainingpolicy
company-owned
By
workingby
with2015
nongovernmental organizations,makers, competitors and others, we can tackle common

Collection

24%

markets.Alliance and the Plastics Recovery Alliance, and others,
18%we arechallenges. As a member of the Paper Recovery
2011
helping advance a number of meaningful food packaging initiatives that will have a significant impact
on the entire
IN PROGRESS
industry.
Infrastructure

2012

U.S. and Canada company-owned stores.

GOAL

PROGRESS

Implement
Serve 5 percent offront-of-store
beverages made inrecycling
our storesininour
personal
company-owned
tumblers by 2015
stores by 2015

In 2012, we
increasedthecustomers
usedavailabilityoffront-of-store
personal tumblers more thanrecycling by an additional 453
35 million times, and we arestores in the U.S. and Canada.
implementing new solutions
inON
2013
to bring us closer
TRACK
to this goal.

Percent of beverages 100%served in personal tumblers
2015

1.5%*

1.5%

Percent of store locations
with front-of-store
recycling34.2 Million
Beverages

5%
35.8 Million
Beverages

24%

18%
NEEDS IMROVEMENT

2012

2011
U.S. and Canada company-owned stores.

2011

GOAL

PROGRESS

Recycling in Our Stores

2012

2015

U.S., Canada, UK, Ireland and Germany company-owned stores.
*Previous results restated using total beverages vs. total transactions.

Although most of our customers take their beverages to go, providing front-of-store
is an importantofPercentrecyclingof beverages
served inpartpersonal
tumblers
In 2012, customers used
Serve 5 percent of
our effort to develop comprehensive recycling solutions.

personal tumblers more thanbeverages made in
1.5%*
1.5%
35 million times, and we arein personal
Inour2008 stores
we set a goal
to implement front-of-store recycling in all company-owned locations by 2015. In 2012 24% of
implementing new solutions
ourcompany-owned
stores in the United States and Canada offered front-of-store recycling. Of these locations, 94%
tumblers
by 2015
in 2013 to bring us closer
34.2 Million
35.8 Million

5%

were able to recycle or compost the hot cup. Although we still have work to do, we are Beverages
pleased with our progressandBeverages
to this goal.
will build on this momentum while expanding to international markets to reach our goal.
NEEDS IMROVEMENT

2011

2012

2015

U.S., Canada, UK, Ireland and Germany company-owned stores.
*Previous results restated using total beverages vs. total transactions.

10

our paper and plastic
cups by 2012

working toward materials and/or
infrastructure solutions for our
remaining company-owned
markets.

Starbucks Global Responsibility Report – Goals and Progress 2012IN PROGRESS

Infrastructure

In 2012 we confirmed that markets such as Germany and the United Kingdom have effective recycling solutions inplace, even if they do not include front-of-store recycling canisters. For example, in the United Kingdom store waste
GOAL
PROGRESS
is separated into three streams in the back of our stores, and then separated later at the waste facility. Our UK storesare currently diverting approximately 50% of their waste from landfills with this method, and we are testing ways to100%
In 2012,
we increased
theincrease
this percentage. By leveraging thesolutionsfrom our different
markets around the world, we
can help build
Implement
availabilityoffront-of-store
2015
capabilities in markets newer to recycling.

front-of-store
recycling by an additional 453
stores in the U.S. and Canada.
recyclinginourBack-of-store recycling is also a priority, as most of our in-store waste is generated
behindcounter.
In 2012 78% ofPercentof thestore
locationscompany-owned
withforfront-of-store
recyclingthe3,178 stores in the United States and Canada where Starbucks is responsible
providing waste
removal services
ON TRACK
recycledboxes and other items. Among our remaining U.S. and Canada retail locations, the majority werestorescardboard
by 201524%

limited by operational impasses, such as a lack of store space for recycling carts or the unavailability 18%
of commercial
recycling services. We are working hard to resolve these barriers.
2011

2012

U.S. and Canada company-owned stores.

GOAL

PROGRESS

Serve 5 percent ofbeverages made in
our stores in personal
tumblers by 2015

In 2012, customers usedpersonal tumblers more than
35 million times, and we are
implementing new solutionsin 2013 to bring us closer
to this goal.

Percent of beverages served in personal tumblers

1.5%*

1.5%
34.2 Million
Beverages

5%
35.8 Million
Beverages

NEEDS IMROVEMENT

2011

2012

2015

U.S., Canada, UK, Ireland and Germany company-owned stores.
*Previous results restated using total beverages vs. total transactions.

Reducing Waste with Reusable Cups
Reusable cups are an important component of our overall waste reduction strategy. Since 1985 we’ve rewarded ourcustomers with a discount when they bring in personal tumblers, and we have a goal to serve 5% of the beverages
made in our stores in tumblers and mugs brought in by our customers.
In 2012 customers brought their own tumblers into our stores 35.8 million times, saving more than 1.6 million poundsof paper from landfills. Although customers brought in their personal mugs 1.6 million more times in 2012 overthe previous year, the percentage of customers choosing reusable mugs remained flat from last year. In previous
years, we calculated the percentage of customer tumbler use over total transactions. In collecting data from ourstores around the world and analyzing customer behavior, we determined that a better measurement of this goal is
to calculate the percentage of times a personal cup/tumbler is used over our total beverage sales, which is a more
precise measure of the total beverages we sell.
We’ll continue to find innovative ways to engage customers to work with us to reduce waste, including launching a$1 reusable cup in the U.S. and Canada in 2013 with plans to expand to other markets. We challenge ourselves, ourpartners in our support centers and our stores, to use reusable cups and remain committed to exploring new ways toreduce our cup waste.

11$ON TRACKStarbucks Global Responsibility Report – Goals andProgress 2012
Commitment is defined as being made either by public declaration of intent orsigned contract.

GOAL

PROGRESS

Improve farmers’
access to carbon
markets, helping themgenerate additional
income while
protecting theenvironment

We focused on providing
agricultural best practices
which will help farmers
better respond and/or adapt
to regional climate changes,
and have expanded ourprogram to Brazil.

Sumatra,Indonesia

Chiapas, Mexico

ON TRACK
Minas Gerais, Brazil

Forest Conservation
We are concerned about the impacts of climate change, especially in the sensitive bioregions where coffee is grown.
To better understand the risk to farming communities and our supply chain, we work with Conservation International(CI) and farmers in three unique coffee-producing communities. Together we are working to identify and test effective
strategies for improving the sustainability of coffee production processes, the conservation and restoration of natural
habitat, and opportunities to facilitate farmer access to forest carbon markets or other forms of assistance.
In Chiapas, Mexico, we engaged more than 200 farmers in 23 communities and helped them protect 10 species ofplants in nearly 500,000 hectares in three protected area reserves. Capturing the carbon value of this investment intree plantings has helped farmers receive additional income in the form of payments for carbon credits – creating theequivalent of 22 new jobs and representing an average of nearly 27% of a participating farmer’s income.
In Sumatra, Indonesia, we are continually exploring the feasibility of a forest carbon market program with local andregional government organizations to lay the groundwork for the future. We are investing in the development of the
Aceh Tengah Coffee Climate Change Adaption plan, building the first of six nurseries in 2012, organizing climate
mitigation and adaption trainings for farmers, and establishing plans to plant 300,000 trees by 2013.
We expanded the partnership to the Minas Gerais region in Brazil’s Atlantic Forest for the first time in 2012, anddistributed 200,000 native tree seedlings to farmers. We are helping farmers gain access to existing government
programs that provide cash incentives for forest preservation and restoration. We are also conducting research tobetter understand opportunities for improved productivity, increased income and resilience to climate change.
Testing these approaches in different regions helps us refine our strategies so they can be applied to other coffeegrowing communities and replicated by other government and industry partners.

12

Starbucks Global Responsibility Report – Goals and Progress 2012

Community

Our communities are not just where we have stores. They are every place
our business touches, from the backyards of our customers, to the farms
where our coffee is grown. We have a responsibility to make our communities
stronger – using the scale of our business for positive change.

GOAL

PROGRESS

Mobilize ourpartners (employees)
and customers tocontribute 1 million
hours of community
service per year by2015

We increased our service
hours in 2012, contributing
nearly 40% more hours than
the year before.

GOAL

PROGRESS

1 Million
442,353
Hours

613,214
Hours

2011

2012

Hours

ON TRACK2015

Includes all global markets regardless of ownership.

Serving our Communities

Now, more than ever, communities are looking
to the private
sectorthis
to share resources and create meaningful change.
We continued
to exceed
Engage a total of
54,848By mobilizing partners (employees) and thewemoreserve,
we’re tapping into a passionate network of people
goalcommunities
by engaging
than50,000young
youth in community
eager to be a catalyst for change in their54,000
local neighborhoods.
50,050activities in 2012.
people to innovate
Inand2012, takewe brought
togetheractionin our customers and partners, civic leaders and nonprofit organizations to contribute
more than 613,000 hours of service aroundACHIEVED
the world. During April’s Global Month of Service, volunteers made atheir communities
significant impact in more than 33 countries around the world – with more than 2,100 community service projects
by 2015completed in just 30 days.

2011

2012

50,000201513

and customers to
Hours
Hours
contribute 1 million
ON TRACK
hours of community
Starbucks
GlobalResponsibility Report – Goals and Progress
20122012
service per
year by
2011
2015
Includes all global markets regardless of ownership.
GOAL

PROGRESSEngage a total of
50,000 young
people to innovate
and take action in
their communities
by 2015

We continued to exceed thisgoal by engaging more than
54,000 youth in community
activities in 2012.

2015

54,84850,05050,000ACHIEVED

2011

2012

2015

Engaging YouthAs we engage in communities in the present, we are also planning for the future. We’re helping develop the next
generation of extraordinary leaders through our Youth Action Grants. These investments help young people learn
the skills required for our changing global economy, such as business savvy, social conscience and collaborative
communication.
When we created the Youth Action program in 2008, we set an ambitious goal of engaging 50,000 young people
by 2015. For each of the past three years, we have exceeded this goal. These youth leaders in turn mobilized morethan 1.8 million hours of community service in 2012 and created ripples of change in communities around the world.
As we look to the future with our Youth Leadership grants, we hope to help the next generation of leaders to build
successful and socially responsible businesses and nonprofit organizations.

Community Stores
We are exploring new ways we can be more directly involved with the communities we serve. Our Community Storesare helping create engaged citizens through an innovative business model and partnerships. Community Storesserve as the hub of our community service and training programs that promote leadership and job and life-skill
development.
During fiscal 2012 we opened our first two Community Stores in Harlem, New York, and the Crenshaw community of
Los Angeles. We opened a third store in Houston, Texas, in early fiscal 2013.
In the first 12 months of the Community Store program, this effort generated $245,000 for holistic communityrevitalization programs focused on education, safety, housing, health and employment. As we celebrate the first yearof Community Stores, we are pleased with the personal and financial impacts they have made in these neighborhoods.
These stores have shed light on the role our stores can play in creating community connection.

Farming Communities
Our commitment to communities extends beyond our stores to include the regions that supply our coffee, tea andcocoa. Starbucks invests in programs designed to strengthen local economic and social development. We are working
collaboratively with nongovernmental organizations that have experience and expertise in working with farming
communities.
In addition to social investments, we also support communities through farmer loans and ethical sourcing programswith Conservation International and Fairtrade, among others.
In Indonesia’s Aceh province, Starbucks has teamed with Save the Children to improve children’s health andeducation in coffee-growing communities through BLEND (Better Living, Education, Nutrition, and Development).

14

Starbucks Global Responsibility Report – Goals and Progress 2012
The BLEND project began in 2009. Since that time, it has made a real difference in the lives of children and theirfamilies from more than 40 communities in the Bener Meriah district. Participating communities have doubled theirvaccination rates, drastically improved health worker capacity, and quadrupled the number of community healthposts. Moving forward, our plan is to expand BLEND to other Bener Meriah communities.
In tea-growing regions of India and botanical-farming communities in Guatemala, Starbucks has helped support
health and economic development programs through Tazo’s Community Health and Advancement Initiative (CHAI)
project, a joint partnership with Mercy Corps. Since 2003 Starbucks and Tazo suppliers have contributed $1.1 million
for CHAI. We are now involved in a three-year project to impact more than 11,000 people with water and sanitation
improvements, youth engagement, education and income generation.
Since fiscal 2005, Starbucks has helped support the Guatemala Education Initiative, an effort with Save the Children
to bring education programs to remote coffee-producing villages in that country. In 2011 Starbucks launched athree-year project with a $1 million contribution to Save the Children to improve education, health and nutrition forcoffee-farming families in Guatemala’s Huehuetenango region.
Starbucks also supports water, sanitation and hygiene education programs in water-stressed countries through the
Starbucks Foundation’s Ethos Water Fund. For each bottle of Ethos® water purchased, a contribution of $.05US($.10CN in Canada) is made to the fund. Since 2005 $7.38 million has been granted, benefitting approximately
430,000 people around the world. In 2012 two new grants were made in East Africa, an important coffee-growing
region for Starbucks.

GivingThe Starbucks Foundation is a separate 501(c)(3) charitable organization that receives funding from Starbucks
Corporation and private donations. The Foundation gave $13.8 million in 2012, making over 400 grants to nonprofit
organizations. Grants included $2.3 million for Starbucks Youth Leadership grants and $2 million in origin social
development grants to Mercy Corps, Save the Children, Ethos Water Fund, PCI (Project Concern International) andPATH.
In 2012 Starbucks Corporation gave $6.5 million in cash, including $1.75 million to the Starbucks Foundation.
Corporate giving included funding for community-building programs – including the Global Fund through ourpartnership with (RED) ™ and other efforts – and $40 million in in-kind contributions.

Diversity and Inclusion
As our company has grown to reach our neighborhoods and communities around the world, diversity and inclusion
have become increasingly important to success. We understand that meeting the needs of the global community
requires creativity and innovation. We intend to leverage the diversity of thought that our partners, communities andsuppliers bring to us.
At Starbucks we strive to create a culture that values and respects diversity and inclusion. We expect to be the leader
in diversity and inclusion from our partners in the field to our senior leadership teams. To ensure that our goal isa reality, starting in 2012 we have integrated diversity and inclusion into the core of our leadership competencies.
We expect that all leaders within Starbucks practice behaviors that demonstrate inclusion. The new leadershipcompetency reads that, as leaders, we will “reach out to leverage diverse points of view, talents and capabilities.
Work and think across teams, functions and businesses; across markets, channels and organizations; across culturesand communities; across physical and digital spaces.”
To strengthen these efforts, we also collaborate with diverse professional organizations, nonprofit organizations,businesses, civic leaders and individuals who share our values.

15

Starbucks Global Responsibility Report – Goals and Progress 2012

About the 2012 Starbucks
Responsibility Report
Scope
The report for fiscal 2012 focuses on our performance against the goals we set in 2008 in three areas: ethical sourcing,environmental stewardship and community involvement. We’ve also included helpful links to information andresources publicly available on Starbucks.com regarding our financial, corporate governance, workplace and diversity
policies and performance.
In developing this report, we’ve covered topics and issues that are important to Starbucks and our stakeholders,
based on feedback from sources like MyStarbucksIdea, customer feedback via our Customer Service centerand industry analysis conducted by SustainAbility and Edelman, along with direct conversations with the manyorganizations we work with. We share information about those topics in the body of the report or direct readers toother resources.
Our report has also been guided by the Global Reporting Initiative G3 Guidelines, a set of internationally recognizedsustainability reporting standards. These key criteria are outlined in our GRI Index.
A high-level summary of our progress toward our commitments and public goals are contained in our Global
Responsibility Scorecard 2012.

Boundaries
Our Global Responsibility Report for fiscal year 2012 focuses on the work we are doing in ethical sourcing, community
involvement and environmental stewardship. These areas are where we can have the greatest impact. We also believe
they are important to Starbucks, our customers, our partners (employees), non-governmental organizations andinvestors.
We also know wellness and workplace policies are of considerable interest to our stakeholders. Furthermore, we havealways embraced diversity as an essential component in the way we do business. We are currently innovating ourdiversity strategy to support our multi-channel, multi-brand global expansion.
While our commitments are global, our report content is focused largely on Starbucks U.S. and Canada companyowned and operated retail stores and global supply chain operations. Counting by stores, these operations represent
most of Starbucks social, environmental and economic impacts.
A notable exception to this is information on total coffee purchases. Here we report for all Starbucks brands and retailstores, including Starbucks Coffee, Seattle’s Best Coffee and Torrefazione Italia.
Starbucks has used the Credit360 system for key performance indicators data entry, approval and audit. This fiscal
year we’ve started to collect data from company-owned stores globally; we’re in the process of validating andimproving the processes and information so we can consistently and accurately report against common goals.

Information Integrity
Starbucks management is responsible for the preparation and integrity of the information being reported for fiscal
2012. Through a system of internal controls, including a comprehensive verification process involving internal subject
matter experts, we believe this information fairly represents our global responsibility activities and performance results
for the fiscal year 2012. External verification is provided by Moss Adams LLP. Read the Moss Adams Independent
Assurance Report. All infographics related to our goal performance are visual representations of progress, and not toexact scale.
16

Starbucks Global Responsibility Report – Goals and Progress 2012
Net Stores Opened (Closed)
During The Fiscal Year Ended (1)Americas

October 2, 2011

September 30, 2012

October 2, 2011

US

161

(2)

6,866

6,705

Canada

42

37

878

836

Chile

6

5

41

35

Brazil

25

5

53

28

Puerto Rico

–

(2)

19

19

234

43

7,857

7,623

Total Americas

EMEA

Store Open as of

September 30, 2012

UK

(7)

5

593

600

Germany

7

8

157

150

France

5

8

67

62

Switzerland

4

–

50

46

Austria

–

2

12

12

Netherlands

1

2

3

2

10

25

882

872

Total EMEA
China

130

58

408

278

Thailand

14

8

155

141

Singapore

8

8

80

72

Australia

2

(1)

23

21

Total CAP

154

73

666

512

Total Company
Operated

398

141

9,405

9,007

CAP

Store openings are reported net of closures. In North and South America, 279 and 100 company-operated stores were opened during 2012 and 2011, respectively, and 45 and57 stores were closed during 2012 and 2011, respectively. In Europe, the Middle East and Africa, 27 and 41 company-operated stores were opened during 2012 and 2011,
respectively, and 17 and 16 stores were closed during 2012 and 2011, respectively. In China, Asia and the Pacific, 161 and 87 company-operated stores were opened during 2012
and 2011, respectively, and 7 and 14 stores were closed during 2012 and 2011, respectively.

(1)

Reporting Year
Starbucks fiscal year 2012 (October 3, 2011-September 30, 2012), 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 year’s Global Responsibility Reports available here.

Forward-Looking Statements
Our reporting on global responsibility for fiscal 2012 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 other raw 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 thecompany’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, 2012. The company assumes no obligation to update
any of these forward-looking statements.

17