Use ofProceeds
ReportCovering the May 2016 Sustainability BondStarbucks Inaugural
Sustainability BondAt Starbucks, we believe in using our scale for good,and having positive social impact in the communities
we serve. With our inaugural May 2016 issuance of a$500 million sustainability bond, we made acommitment to investors to use the note’s proceeds
for improving our supply chain’s environmental andsocial impact.
This report marks a year from our first sustainability
bond’s issuance, and we are pleased to report that all
funds have been deployed to eligible programs.
Proceeds from the issuance were used to elevate thepositive 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 to farmers
across the globe

As the first U.S. Corporate issuer of a Sustainability
Bond we hope to inspire others to innovate on, andimprove, the role of public companies across theworld.

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Key PerformanceIndicators
Starbucks committed to reporting on the environmental
and social impact of our bond issuance. In addition to thedisclosures we make in our annual Global Social Impact
Report, we identified performance indicators, including thenumber 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 disclose in the table to theright.

Key Performance Indicatorsfor reporting period
between May 16, 2016 and May 16, 2017
C.A.F.E. Practices supply chains added 1

86

Farmer Support Centers Opened1

Farmer Support Centers Operated81 Primarily represents new farms and mills

Africa3%

CentralAmerica
21%
South
America65%

Oceania/ Asia
11%

Starbucks used proceeds from the Sustainability
Bond to source a portion of the nearly 650 million
pounds of coffee purchased during the reporting
period. The chart shows where these coffee
purchases originated, by region.
The scope of our program reaches far beyond ourown purchases. In FY16 alone, approximately 2.7
billion pounds of C.A.F.E. Practices verified coffee
was available for other roasters to purchase.

Deloitte & Touche LLP
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Fax: +1 206 965 7000

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 $495.6 million from theissuance of the May 2016 sustainability bond (the “Sustainability Bond”) were disbursed byStarbucks Corporation during the period from May 16, 2016 to May 16, 2017 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’s assertion
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 assertion isfairly 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 misstatement ofmanagement’s assertion, whether due to fraud or error. We believe that the evidence we obtained
is sufficient and appropriate to provide a reasonable basis for our opinion.
In our opinion, management’s assertion that the net proceeds of $495.6 million from the issuance of
the Sustainability Bond were disbursed by Starbucks Corporation during the period from May 16,
2016 to May 16, 2017 for Eligible Sustainability Projects in accordance with the Criteria set forth inManagement’s Assertion Report is fairly stated, in all material respects.

June 28, 2017

Member ofDeloitte Touche Tohmatsu

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 May 16, 2016 to May 16, 2017 in the table below. Starbucks management asserts that the net proceeds of$495.6 million from the issuance of the May 2016 sustainability bond (the “Sustainability Bond”) were disbursed by Starbucks
during the period from May 16, 2016 to May 16, 2017, 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 toStarbucks 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 May 16, 2016 to May 16, 2017.

Eligible Sustainability Projects

Project Criteria

C.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 and agronomy
research and development centers

Starbucks Global Farmer Fund LoanIssuances

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 May 16, 2016 to May 16, 2017:
millions, USD
Net Proceeds from the Issuance of the Sustainability Bond$495.6

C.A.F.E. Practices Coffee Purchases($489.1)

Farmer Support Center and Agronomy Research and Development Center Projects($3.8)Starbucks Global Farmer Fund Loan Issuance($2.8)

Total Use of Net Proceeds for Eligible Sustainability Projects($495.6)

Percentage of Net Proceeds Funding Eligible Sustainability Projects

100%

We are in business to inspire and nurture the human spirit, one person, one cup andone 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