STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Year in Review: Fiscal 2009
Starbucks has a long history of doing business in ways that are socially,
environmentally, and economically responsible. Our commitment to doing the rightthing has always been central to how we operate as a company. It’s deeply valued by ourpartners (employees) and customers alike, and we believe it also makes great businesssense. It hasn’t always been easy; however, we’ve learned from our mistakes andpersevered as a pioneer of innovation across the industry.
As we’ve grown in size, so has our ability to drive
positive change in communities around the world.
In 2008 we set bold new goals in the areas where
we can have the greatest impact: ethical sourcing,environmental stewardship, and community
involvement. Together, we call these priorities
Starbucks™ Shared Planet™.
By openly reporting on our performance, we
aim to inform, inspire, and engage our partners,
customers, and other stakeholders. In addition,
this exercise gives us the opportunity to measure
our progress and refine our strategy for the future.
In 2009 we took significant steps towardachieving our goals and also encounteredchallenges. Most notably, extraordinary global
economic conditions forced us to make somedifficult business decisions. While we adopted
considerable cost-saving initiatives and invested
in the customer experience to support long-term,
profitable growth, we remained committed toresponsible business practices.
Last year we looked beyond the boundaries of ourown business structure and collaborated withexternal experts and organizations to find creative
solutions for complex problems. This dialogue
helped us gain a better understanding of thebarriers we’re facing and aided the developmentof new action plans that we’ve already begun
to implement.

We’re pleased to share our 2009 progresswith you, and we hope you’ll find this year’s
streamlined report easy to navigate. For asnapshot of year-over-year performance1 against
our Starbucks™ Shared Planet™ goals, we invite
you to explore this section further. Regular
updates on our broader responsible businesspractices are available atstarbucks.com/responsibility.

1 Report is based on fiscal year (October through September) performance unless otherwise indicated.

As proud as we are of our accomplishments,
we recognize we have a long way to go, and wewelcome your input and ideas.

1STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Message from
Vivek Varma
Senior Vice President, Public Affairs

Since we first opened our doors nearly 40 years ago, Starbucks
has set out to be an enduring company. In recent years, faced with
unprecedented economic challenges, we have taken a hard look at
our business. We have reminded ourselves who we are and what westand for. And we have transformed our company – reinvigorating ourbusiness and returning it to the path of profitable, long-term growth.
At the center of this transformation is an effort to reignite the emotional
connection we have with our partners and customers. It’s a bond that is
not only based on our coffee, but on something bigger.
It’s based on trust.
Trust that even though we may not be perfect, we are always striving todo the right thing. Trust that we will work to bring humanity to every
aspect of our business. Trust that even though there is much more work
to do, we will be authentic and transparent with both our successes andchallenges.
We work to earn this trust from our customers and partners by doing
business responsibly. We call this Starbucks ™ Shared Planet™,
our commitment to sourcing our products ethically, improving ourcommunities, and reducing our environmental impact. In this year’s
Global Responsibility Report, we openly share with you our goals andprogress in these areas.
Some may question whether a company can truly do well and do good.
We know from experience that it’s not only possible to do both; it’s
critical to our future success.
Warm regards,
Vivek

2

STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Ethical Sourcing

Starbucks has always believed in buying,roasting, and serving the highest quality
coffee in the world. By promoting
responsible growing practices, we’reable to serve a great cup of coffee while
helping to improve the lives of farmers
and protect the environment. We’re also
applying the knowledge we’ve gained
through our work with coffee farmers toother areas of our supply chain.
In 2008 we set a goal to purchase 100 percent
responsibly grown and ethically traded coffee
by 2015. When we cite “responsibly grown andethically traded coffee,” we’re referring to coffee
that is third-party verified or certified, either
through Coffee and Farmer Equity (C.A.F.E.)
Practices, Fairtrade, or another externally audited
system.
Our approach to sourcing responsibly grownand ethically traded coffee is grounded in
C.A.F.E. Practices, a comprehensive set of social,economic, environmental, and quality guidelines
developed by Starbucks in collaboration with
Conservation International. In 2009 we increased
our purchases of C.A.F.E. Practices verified coffee,
as well as Fairtrade certified coffee and Certified
Organic coffee.

In addition to paying equitable prices forpremium coffee and providing technicalassistance for optimal production, we’re helping
farmers improve their businesses by supporting
programs that offer access to credit. Last year we
increased our farmer loan commitments, enabling
more farmers to finance pre-harvest activities,
make operational improvements, and cover
export costs.
We’ve also evolved our relationship with
Conservation International to help farmers
reduce carbon emissions, adapt to climate change,and generate additional income. Together, in
2009, we began piloting forest conservation
incentive programs in Latin America and Asia.
We invite you to learn more about our Starbucks™
Shared Planet™ ethical coffee sourcing goals andrecent milestones, as well as our ethical sourcing
practices for other products, such as tea, cocoa,
and manufactured goods.

3STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Community Involvement

At our core, Starbucks mission is toinspire and nurture the human spirit.
We believe one of the most important
contributions we can make is to serve
as a catalyst for positive, relevantchange in the communities where we
do business. To amplify our initiatives,
we collaborate with similarly driven
nonprofit organizations, businesses, civic
leaders, and individuals. We know we canaccomplish more together than we canalone.
With stores around the world and a rapidly
growing online presence, we’re able to engage
millions of consumers in a dialogue about local
and global issues, and to facilitate action. Our
goal is to motivate our partners (employees),customers, and young people to join forces andmake a meaningful impact in their communities.

2009 compared with the previous year due tointernal and external challenges, we developed
new opportunities for partners and customers to
become involved in causes they care about. Last
year we also invested in young people who webelieve can help create innovative solutions toaddress community issues while gaining valuable
leadership skills. Our Starbucks™ Shared Planet™
Youth Action Grants laid the foundation for thisendeavor, and we’re looking forward to building
the momentum.
In the year ahead, we’ll continue to collaborate
with other organizations and individuals toprovide ways for people across the globe toconnect with physical and virtual communities
and make a difference.
We invite you to learn more about our Starbucks™
Shared Planet™ community involvement
goals, the programs we support, and our recent
milestones.

Community service has always been part of ourethos. Although our service hours decreased in

4STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Environmental StewardshipAs a company that relies on an
agricultural product, Starbucks
is vulnerable to the effects of climatechange. We know our customers areconcerned about this issue as well.
In order to maintain our high quality
standards and help preserve the planet
for future generations, we’re taking
bold actions to reduce ourenvironmental impact.
In 2009 our efforts gained new traction throughcollaboration with representatives across ourvalue chain. We joined forces with suppliers,
business partners, local municipal governments,
environmental NGOs, and experts from theacademic sector to address the challenges we’refacing together, and to advance a number of
meaningful initiatives.
At the store level, energy and water conservationand other green building strategies continue tobe key priorities with potential to significantly
minimize our environmental footprint. Last year
we launched several major projects in these areas,
and we’re pleased to share positive initial results.

Recycling and other forms of waste diversion
are also top of mind for us and our customers. In
2009 we adopted a systems-thinking approach
to examine the relationship between design,collection, and infrastructure. By analyzing how
the various pieces of the puzzle fit together, we
believe we can help make our cups and otherpackaging more broadly recyclable, both in form
and in practice. Ultimately, our aim is to ensure
100 percent of our cups are reusable or recyclable
by 2015.
Looking beyond our store presence, in 2009 we
expanded our ongoing efforts to protect carbonabsorbing tropical forests in numerous coffeegrowing communities. We also continued tochampion progressive climate policy as a founding
member of a coalition called Business forInnovative Climate and Energy Policy (BICEP)
while engaging our partners (employees),customers, and other organizations in the
dialogue.
We invite you to learn more about our Starbucks™
Shared Planet™ environmental stewardship goals
and recent milestones.

5

STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Coffee Purchasing
We set a goal in 2008 to purchase 100
percent responsibly grown and ethicallytraded coffee by 2015. When we cite
“responsibly grown and ethically tradedcoffee,” we’re referring to coffee that isthird-party verified or certified, either
through Coffee andFarmer Equity (C.A.F.E.) Practices,
Fairtrade, or another externally audited
system.
We also announced a more specific goal in 2008
to increase our annual purchases of coffee verified
through C.A.F.E. Practices, a comprehensive setof social, economic, environmental, and quality
guidelines developed in collaboration with
Conservation International. With approximately
200 performance indicators for farms and mills,
C.A.F.E. Practices is evaluated by third-party
verifiers and overseen by Scientific Certification
Systems.
Our purchases of C.A.F.E. Practices verified coffee
in 2008 accounted for 77 percent (295 million
pounds) of total coffee purchases, and in 2009 weincreased that amount to 81 percent (299 million
pounds) of total purchases. We complement
purchases of C.A.F.E. Practices verified coffee withpurchases of Fairtrade certified coffee to promotesound production standards. This action has madeus the largest purchaser of Fairtrade certified
coffee in the world.
In 2008 we publicly shared another specificcoffee purchasing goal: to double purchases ofFairtrade certified coffee in 2009. Last year we
hit this target, with purchases increasing from19 million pounds in 2008 to 39 million pounds
in 20091. By the end of 2009, 100 percent of theespresso coffee sold in our stores in the U.K. andIreland was Fairtrade certified. Moving forward,
we’re committed to purchasing Fairtrade certified
coffee as part of our sourcing strategy.
Beyond C.A.F.E. Practices verified and Fairtradecertified coffee, we also purchase Certified
Organic coffee. In 2009 our year-over-year
purchases of Certified Organic coffee increased
from 10 million pounds to 14 million pounds. Bypurchasing Certified Organic and other thirdparty verified or certified coffee, we hope to
not only meet our customers’ needs but to help
protect the environment and, thereby, farmer
livelihoods in coffee-growing regions.
In 2009 we began geographically diversifying our
support services to enhance the growing practicesof a broader farmer base. One extension of thisGOALS

PROGRESS

Increase our annual
purchases of coffee
verified throughC.A.F.E. Practices

Our purchases of C.A.F.E.
Practices verified coffee
increased from 77% of totalcoffee purchases in 2008 to
81% of total coffee purchases
in 2009

In 2009 we launched the groundbreaking Small
Farmer Sustainability Initiative (SFSI) in
partnership with TransFair USA and Fairtrade
Labelling Organization International. This threeyear pilot program builds upon our existing efforts
to promote stability in the coffee industry.
Through the SFSI, Starbucks and Fairtradecommit to working together to increase small-

Total coffee purchases(Millions)

Total C.A.F.E. Practices
purchases(Millions)

352

385

367

(lb)

160

174

167

(kg)

228

295

299

(lb)

103

134

136

(kg)

2007

2008

2009

ACHIEVED

Double ourpurchases ofFairtrade certified
coffee in 2009

Our purchases of Fairtradecertified coffee increased
from 19 million pounds in2008 to 39 million pounds
in 200919 Million lb*

39 Million lb**

9 Million kg

18 Million kg

ACHIEVED2008

On-hand inventory is included in 2009 purchases toaccount for transition from fiscal to calendar year per ourcommitment to Fairtrade, announced in October 2008

GOALS

PROGRESS

effort was the opening of a Starbucks Farmer
Support Center in Kigali, Rwanda,Our
last
year.
The
farmerloan
Invest in farmers andcommitments increased
centerworks
with east African coffee
farmerstheircommunities
by $2 million in 2009by nearly
doubling
to help
them develop
more responsible growing
ON TRACK
farmerloans
to quality and size
methods, improve theof their$20 million by 2015
harvests, and ultimately earn better prices. Given
that we source the majority of our coffee from tensof thousands of family farms operating on lessthan 30 acres (roughly 12 hectares) of land, we’resteadfastly committed to helping small-scale
farmers thrive.

GOALS
Mobilize our partners(employees) andcustomers tocontribute morethan 1 million hours
of community service
per year by 20152009

* Coffee purchased October 2007 through September 2008 (baseline year)** Coffee purchased (including on-hand inventory) January through December 2009

scale farmer support and capacity-building
services. Additionally, our investment inalternative loanenables more farmers$20programs
Million2015
to finance pre-harvest activities, make operational$14.5 Million
2009
improvements,
andMillion
cover export costs.
$12.5

We’ve also evolved our relationship with
2000 –
2008
Conservation International to help farmers$ adapt to climate change,
reduce carbon emissions,and generate additional income. Together, inBaseline year: 20082009, we began piloting forest conservation
incentive programs in Latin America and Asia.
PROGRESS
Outcomes from this initial phase will inform plans
to expand elsewhere in the future.
Our service hours decreased
1 Million
by 24% in 2009

NEEDS IMPROVEMENT

Hours

245,974
Hours

*

2008

186,011
Hours

2009

**

2015

* U.S. and Canada only ** Global representation. The 2009
community service hours total does not reflect Youth Action Grant activities.

Through grants awarded in
Engage 50,000
2009, we engaged 20,868
toto calendar year
1 On-hand inventory is included in 2009 purchases to account for youngtransitionpeople
from fiscal
perour incommitment
youngpeoplecommunity
to Fairtrade, announced in October 2008.
activities, reaching 42% ofinnovate and takeour 2015 goal

action in theircommunities by 2015

50,00020156STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009

Farmer Loans
GOALS

We know our success as a company islinked to the success of the thousandsof farmers who grow our coffee. Oneof the ways we’re working to maintainour supply of high-quality coffee isby investing in farmers and theircommunities through alternative loan
programs.
During growing and harvest cycles, manycoffee farmers dip into their modest reserves tocover expenses until they can sell their crops.
Some farmers may experience a cash shortage,
prompting them to sell their crops early – andoften for a lower price – to local buyers. In othercases, farmers may borrow money at exorbitantinterest rates. This cuts into their profits and canlead to a cyclical pattern in following years.
By investing in pioneering programs thatprovide access to credit, we’re helping farmers
manage risk and strengthen their businesses. In
2008 we announced a goal to nearly double ourinvestment in farmer loans from $12.5 million to

PROGRESS
352

Total coffee purchases

385

367

Our purchases of C.A.F.E.
(Millions)
Increase our annual
160
174
167
Practices verified coffee
purchases of coffee
228
295
299
Total C.A.F.E. Practices
increased from 77% of totalpurchases
103
134
136
coffee purchases in 2008 toverified through(Millions)
81% of total coffee purchases
C.A.F.E.
Practices$20 million by 2015. As of 2009 ourcommitments
existing efforts to foster improved livelihoods,
in 2009

(lb)
(kg)
(lb)
(kg)

to Root Capital, Verde Ventures, and the Calvert
environmental stewardship, and economic
ACHIEVEDFoundation reached a total of $14.5 million1. Laststability in the coffee industry. Through the SFSI,
year alone, this support helped more than 72,000
Fairtrade farmer cooperatives
are2008
eligible to2009
apply
2007
farmers who grow our coffee in six countries tofor loans from the funds supported by Starbucks.
finance pre-harvest activities, make operational
Our purchases of Fairtrade Given that19we
Millionlb* the majority of our coffee
39 Million lb**
Double oursource9 Million kg
18 Million kg
certified coffee increased
improvements,
purchases andof cover export costs.
from tens of thousands of family farms with lessfrom 19 million pounds in2008 to 39 million pounds
Fairtrade certified
In 2009 we also launched the groundbreaking
than 30 acres (roughly 12 hectares) of land, we’rein 2009
coffee in 2009
Small Farmer Sustainability Initiative (SFSI) in
steadfastly committed to helping small-scale
ACHIEVED
partnership with TransFair USA and Fairtrade
farmers thrive now and in the future.
Labelling Organization International. Based on ashared history of support for small-scale farmers,
2008
2009
On-hand inventory is included in 2009 purchases tofor transition frompilot
fiscal to calendar
year per our builds upon our
thisaccount
three-year
program* Coffee purchased October 2007 through September 2008 (baseline year)
commitment to Fairtrade, announced in October 2008** Coffee purchased (including on-hand inventory) January through December 2009

GOALS

PROGRESS

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

Our farmer loan
commitments increased
by $2 million in 2009

$20 Million
2015$14.5 Million

ON TRACK2009$12.5 Million

2000 –
2008$

Baseline year: 2008

GOALS

PROGRESS

Mobilize our partners(employees) andcustomers tocontribute morethan 1 million hours
of community service
per year by 2015

Our service hours decreased
by 24% in 2009
NEEDS IMPROVEMENT

1 Million
Hours

245,974
Hours

*

2008

186,011
Hours

2009

**

2015

* U.S. and Canada only ** Global representation. The 2009
community service hours total does not reflect Youth Action Grant activities.

Engage 50,000
young people toinnovate and takeaction in theircommunities by 2015

Through grants awarded in
2009, we engaged 20,868
young people in community
activities, reaching 42% of
our 2015 goal
ON TRACK

50,0002015

20,8682009

Global representation. Baseline year: 2008

GOALS
Support programs
that facilitate farmers’
access to carbon
markets, allowing
them to generate
additional income
1 Per our joint press release with Root Capital, issued in Septemberwhile2009. helping toprevent deforestation

PROGRESS
Through our partnershipwith Conservation
International, in 2009 wepiloted programs in 29
coffee-growing communities
in Chiapas, Mexico, andSumatra, Indonesia
ON TRACK

Chiapas, Mexico
Sumatra, Indonesia

7

2007

STARBUCKS™ SHARED PLANET™

GLOBAL RESPONSIBILITY REPORT 2009Double ourpurchases ofFairtrade certified
coffee in 2009

Community
From the farms that grow our coffee
to the neighborhoods where our storesare located, we’re committed to helping
communities thrive. One of the importantways we’re supporting local communities
is by motivating our partners(employees), customers, and young
people to join forces and become involved
in social, economic, and environmental
initiatives that make a meaningful
impact.
Our goal is to mobilize our partners andcustomers to contribute more than 1 million
hours of community service per year by 2015.
With 150,000 passionate partners around theworld, we have a unique opportunity to serve as acatalyst for positive, relevant change. We’re taking
action by facilitating community efforts, and byprioritizing service as an important aspect of ourcompany culture.
In 2009, at our annual leadership conference inthe U.S., 9,000 of our partners contributed morethan 36,000 hours of service to help rebuild thecity of New Orleans following the devastation of
Hurricane Katrina. Last year we also aligned ouractivities with the new U.S. president’s call for all
Americans to participate in community service.
Leveraging Inauguration Day as an opportunity toencourage partner and customer involvement, welaunched “I’m In,” a prominent public awarenesscampaign with online and offline components
including social networking, television
advertising, and in-store signage.
Our international partners and customers also
participate in local community service efforts ona regular basis, and in 2009 they began tracking
service hours in order to establish a benchmark
for measurement against our global goals.
In the Asia Pacific region alone last year, ourpartners contributed more than 26,000 hours ofcommunity service, with activities benefittingChildren in Indonesia, Deoksu Palace Dialogues
in Korea, and the Books for Children Foundationin Thailand.
In total, Starbucks partners and customers aroundthe world contributed more than 186,000 hours
of community service in 2009. This represents a

Our purchases of Fairtradecertified coffee increased
from 19 million pounds in2008 to 39 million pounds
in 2009

2008

2009

19 Million lb*

39 Million lb**

9 Million kg

18 Million kg

ACHIEVED

On-hand inventory
is included in 2009comparedpurchases to24 percent
decreaseto 2008, which we
account for transition from fiscal to calendar year per ourcommitment to Fairtrade, announced in October 2008
attribute largely to global economic challenges
that required a realignment of our business and,
consequently,
to coordinate
GOALS limited our capacityPROGRESS
community service activities. Our 2009 service
hours total does not include hoursOur
servedfarmerby
loan
Invest in farmers andcommitments
increased
Youth
ActionGrantees,
however
weintendtotheir communities
by $2 million in 2009
includethis number
in future reports. Whileby nearly
doubling
ON TRACK
farmerloans
we havea longway toto go to reach our goal of 1
$20 million by 2015
million service hours per year, we’re building
strong momentum by sharpening our focus anddeveloping tools that will assist local markets with
their endeavors.

2008

2009

For example, one of our Youth Action Grant* Coffee purchased October 2007 through September 2008 (baseline year)** Coffee
purchasedon-hand inventory) January through December 2009
recipients in2009
was(including
an Argentina-based
program called Strengthening the Youth for
Health Network. Managed by Fundación
Huésped, the program trains young people toact as health multipliers, empowering them toproduce and disseminate$20 Million prevention messages
to their peers through theater, film, and2015
other$14.5 Million
2009
artistic genres.
Anotherof
lastyear’srecipients,$12.5 Million
based in the U.S., was the Food Project Internship
Program, which involves young people2000
in –
2008
entrepreneurial ventures to create personal and$social change through sustainable agriculture.
Baseline year: 2008

GOALS

PROGRESS

Mobilize our partners(employees) andcustomers tocontribute morethan 1 million hours
of community service
per year by 2015

Our service hours decreased
by 24% in 2009
NEEDS IMPROVEMENT

1 Million
Hours

245,974
Hours

*

2008

186,011
Hours

2009

**

2015

* U.S. and Canada only ** Global representation. The 2009
community service hours total does not reflect Youth Action Grant activities.

Engage 50,000
young people toinnovate and takeaction in theircommunities by 2015

Through grants awarded in
2009, we engaged 20,868
young people in community
activities, reaching 42% of
our 2015 goal
ON TRACK

50,0002015

20,8682009

Global representation. Baseline year: 2008

GOALS

PROGRESSAs a forward-thinking company, we’re also
In 2009 our cash and in-kind contributions
MexicoThroughour partnershipdedicatedto cultivating
tomorrow’schangetowardChiapas,
community-building
programs – including
Supportprograms
with Conservation
Sumatra, Indonesia
thatfacilitate
farmers’makers. Our goal is to engage 50,000
young people
International,
in 2009 we volunteer service, youth engagement, naturalpiloted programs in 29
accesstocarbonto innovate and take action in theircommunities
disaster relief, (RED)™, and other efforts – totaled
coffee-growing communities
markets, allowing
Chiapas,by 2015. We believe this initiative in
will
spurMexico, andmore than $17 million. We invite you to learn
them to generate
Sumatra, Indonesia
creativeproblem-solving,
more about our efforts to support and enrich theadditional
income help participants gain
ON TRACK
valuableskills, andandcommunities where we do business at starbucks.
whilelife
helping
to give our partners
prevent
deforestation
customers
anothermeaningful opportunity tocom/responsibility.
support local causes. In 2009 we awarded over
$2 million in Starbucks™ Shared Planet™ Youth
Action Grants, which enabled us to engage more
GOALS
PROGRESS
than
20,000 young people in community
activities
and reach 42 percent of our 2015 goal.

Develop acomprehensive
recyclable cup
solution by 2012

In 2009 we convened afirst-ever summit with local
governments, cup
manufacturers, recyclers, andother stakeholders to jointly
identify the steps required tomake our cups recyclable inform and in practice
NEEDS IMPROVEMENT

DesignCollection

8
InfrastructureMobilize our partners(employees) andGLOBAL RESPONSIBILITY REPORT 2009customers tocontribute morethan 1 million hours
of community service
per year by 2015
STARBUCKS™ SHARED PLANET™

NEEDS IMPROVEMENT

Through our expanded relationship with
Conservation International, we’re piloting
forest conservation incentive programs thatlink coffee farmers to carbon markets. Under
this model, we’re working with farmers to carryout actions that reduce carbon emissions. In
addition to minimizing emissions from theburning and clearing of forests – which accountfor approximately 16 percent of global greenhouseemissions – the program aims to help farmers
generate income from emerging carbon markets.
Ultimately, participating farmers are better
positioned to protect their livelihoods anddiversify their risk.
Last year we engaged 29 coffee-growing
communities in Sumatra, Indonesia, andChiapas, Mexico –regions with distinctly
sensitive environments and differing coffeegrowing traditions – in the pilot programs. We’re
now working to engage at least 20 additional
communities in these areas. Outcomes fromthis initial phase will inform plans to expand
elsewhere in the future.

Hours

245,974
Hours

ClimateBecause our business relies on healthy
agricultural systems to produce ahigh-quality product, we view climatechange as a critical issue. It’s a driving
force behind our efforts to minimize
environmental impacts across our supply
chain, from farm to cup. We believe we
can make a difference by advancing thedevelopment of innovative solutions,building strategic relationships with
policy leaders and industry experts, andharnessing the passion of our partners(employees) and customers.

1 Million

Our service hours decreased
by 24% in 2009

186,011

*

Hours

2008

**

2009

2015

* U.S. and Canada only ** Global representation. The 2009
community service hours total does not reflect Youth Action Grant activities.

Tackling
a problem
as complex andfar-reachingThrough
grants awarded in
Engage50,0002009, we engaged 20,868
youngchange
peopletoas climate
requiresactive involvement
young people in community
reaching 42% ofinnovatetakeacrossvariousand
sectors.
In 2009 weactivities,
becameaour 2015 goal
action in theircharter member of a coalition called Business forcommunities by 2015
ON TRACK
Innovative Climate and Energy Policy(BICEP),
which aims to spur the clean energy economy andmitigate global warming by advocating for strong
legislation in the U.S.

50,0002015

20,8682009

Global representation. Baseline year: 2008

GOALS

PROGRESS

Support programs
that facilitate farmers’
access to carbon
markets, allowing
them to generate
additional income
while helping toprevent deforestation

Through our partnershipwith Conservation
International, in 2009 wepiloted programs in 29
coffee-growing communities
in Chiapas, Mexico, andSumatra, Indonesia

GOALS

PROGRESS

Chiapas, Mexico
Sumatra, Indonesia

ON TRACK

Last year we also continued to collaborate
In 2009 we convened aawithDevelop
the Earthwatch
Institute, which
hassummit
beenwith local
first-evercomprehensive
governments, cup
replanting rainforests, mapping water
sourcesandmanufacturers,
recyclers, andrecyclable cup
otherstakeholders to jointly
biodiversity
sustainable
solutionindicators,
by 2012 and sharing
identify the steps required to
makeour
our cups
recyclable
practices with the farmers who growcoffee.
In inform and in practiceaddition, we’ve been working to reduce the impactof our retail operations by participating
the U.S.
NEEDS in
IMPROVEMENTGreen Building Council’s Volume Certification
pilot program – an initiative that will help us
2009 companywe developed local
Implement
achieve
LEED® certification for allInnew
market testing andfront-of-store
implementation
tools toowned stores beginning in 2010.
accelerate front-of-store
recycling in our
recycling in the futurecompany-owned
stores by 2015
NEEDS IMPROVEMENT

DesignCollection

Infrastructure

7,529

Locations399

Locations withfront-of-store
recycling

U.S. and Canada company-owned stores

Serve 25% of
beverages madein our stores inreusable serveware
or tumblers
by 2015

We served 4.4 million more
beverages in reusable cupsin 2009 than in 2008

Serverware or
tumblers used
21.9 Million
times *

Serverware or
tumblers used26.3 Million
times **

1.3%

1.5%

NEEDS IMPROVEMENT

2008
U.K performance accounts for 6.70f theincrease

GOALS

PROGRESS

Reduce energy
consumption
by 25% in ourcompany-owned
stores by 2010

Our electricity use decreasedby 1.7% in company-owned
stores in 2009
ON TRACK

25%

2009

2015

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores

6.8 KWH

6.69 KWH

2008

1.7% Decrease

2009

25% Decrease

2010

9

action in theircommunities by 2015

ON TRACKSTARBUCKS™ SHARED PLANET™

20,8682009

GLOBAL RESPONSIBILITY REPORT 2009

Recycling
Over the years, our white cup has become
an icon and an integral part of thecoffeehouse experience. At the same time,it has become a major concern among ourcustomers due to recycling challenges.
In order to respond to customers andminimize our carbon footprint, we’reaiming to ensure 100 percent of ourcups are reusable or recyclable by 2015.
We’re currently working on a number ofcomplementary initiatives to advance ourprogress in this area. We realize there isno quick fix for this problem; we still havemuch to learn.

Global representation. Baseline year: 2008

GOALS

Chiapas,MexicoIn 2009
approximately
70 percentThrough(2,163)The useof post-consumer
recycled fiber (PCF) in
ourof
partnership
Supportprograms
with Conservation
Sumatra, Indonesia
facilitate farmers’
ourthatcompany-owned
stores in North
America
International,
in 2009 we our cups and other packaging also continues to bepiloted programs in 29
accesstocarbonthat control their own waste collection
recycled
a priority for us, as it has been since 2006 when we
coffee-growing communities
markets, allowing
in Chiapas,
Mexico, anditems made from one or more materials;
however,launched the industry’s first paper beverage cupthem to generate
Sumatra, Indonesia
these
were
typically
back-of-store
items
that
are
containing PCF. Over time, this effort has enabledadditional income
widelyacceptedfor recycling,
suchONas TRACK
cardboard
us to conserve more than 60,000 tons of virgin
while
helpingtoprevent
boxes.
Amongdeforestation
remaining retail locations in Northwood fiber, the equivalent of more than 422,000
America, the majority were limited by operational
trees1.

One of the significant challenges we’re facing
is a wide variance in municipal recycling
capabilities. This inconsistency makes it difficult
for a company like ours, with more than 16,000
retail locations around the globe, to efficiently
and effectively implement a recycling strategy.
In order to achieve greater scalability andstandardization, we set a goal in 2008 to develop
a comprehensive recyclable cup solution by 2012.
Ultimately, we want our paper and plastic cups
– which in the U.S. account for approximately 95
percent of our in-store beverage packaging – to beuniversally recyclable in form and in practice.
When we initially delved into this issue, we
believed making our cups from alternative
materials was the key to broader acceptance into
the recycling stream. In May 2009 we hosted acup summit, convening local municipalities, rawmaterials suppliers, cup manufacturers, retail andbeverage partners, recyclers, NGOs, and academic
experts for the first time. Employing systems
thinking, a problem-solving approach thatanalyzes how the various segments of a structure
are interconnected, we addressed recycling
challenges with a view of the entire value chain.
This dialogue revealed a fundamental needto improve recycling infrastructures while
continuing to explore materials and design. The
result has been enhanced collaboration andmeaningful action, including innovative testing.
One such example is a pilot program sponsored
by Global Green USA’s Coalition for Resource
Recovery to test the recyclability of our paper
cups with old corrugated cardboard, the mostextensively recycled material in the U.S.

PROGRESSGOALSPROGRESS

Develop acomprehensive
recyclable cup
solution by 2012

In 2009 we convened afirst-ever summit with local
governments, cup
manufacturers, recyclers, andother stakeholders to jointly
identify the steps required tomake our cups recyclable inform and in practiceDesignCollection

NEEDS IMPROVEMENT

Implement
front-of-store
recycling in ourcompany-owned
stores by 2015

In 2009 we developed local
market testing andimplementation tools toaccelerate front-of-store
recycling in the future

Infrastructure

7,529

Locations

NEEDS IMPROVEMENT

399

Locations withfront-of-store
recycling

U.S. and Canada company-owned stores

Serve 25% of
beverages madein our stores inreusable serveware
or tumblers
by 2015

We served 4.4 million more
beverages in reusable cupsin 2009 than in 2008

Serverware or
tumblers used
21.9 Million
times *

Serverware or
tumblers used26.3 Million
times **

1.3%

1.5%

NEEDS IMPROVEMENT

2008
U.K performance accounts for 6.70f theincrease

GOALS

25%

2009

2015

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores

PROGRESSIn addition, we’re asking our partners (employees)
impasses, such as minimal store space or lack ofand customers to join forces with us. Our goal is
Ourelectricity
usedecreased
Reducerecycling
energy services.
commercial
by 1.7% in company-owned to serve 25 percent
6.8 KWH of the beverages made inour2008
consumption
stores in 2009
Althoughmanyof our customers order theirstores in reusable serveware or tumblers by 2015.
by 25%
in our6.69 KWH
2009
company-owned
ON TRACKis
1.7% Decrease brought their own tumblers
beverages“to go,” front-of-store recycling
In 2009 customers
stores by 2010
an important part of our effort to develop a
into our 25%
storesmore than 26 million times.2010
Decreasecomprehensive recyclable cup solution. In
Although serveware and tumbler use accounted
2008 we set a goal to implement front-of-store
for only
1.5 percent of total beverages served last
Average electricity use per square foot/store/month. U.S. and Canada company-owned stores.
recycling in all company-owned stores by 2015.
year, this simple shift in behavior kept nearlyBaseline
1.2 year: 2008
While we made only slight progress toward thismillion pounds of paper out of landfills. One of theRenewable energy purchases
Purchase
renewable
targetin 2009, withbins present inroughly 5
ways we’re rewarding customers for tumbler use
increased to the equivalentenergyof 25%storesof the electricity
used is by offering a beverage discount, as we’ve done
percent(399)equivalentof our company-ownedinin company-owned stores
to 50% of the
1 Billion KWH Total
211.3 Million KWH
North America, we believe we’re taking
since 1985.
We’re looking forward
to increasing
in 2009 the rightelectricity used in
2008
20%
steps
to drivechange in the near term.
servewareandtumbleruse in the
future.
1 Billion
KWH Total
259.5
MillionKWH
ourcompany-owned
2009
25%
stores by 2010
ON TRACK

50%
1 According to the Environmental Defense Fund Paper Calculator.

2010
U.S. and Canada company-owned stores

10

company-owned
stores by 2015

recycling in the future
NEEDS IMPROVEMENT

399

STARBUCKS™ SHARED PLANET™

Locations withfront-of-store
recycling

GLOBAL RESPONSIBILITY REPORT 2009

EnergyAcross the company, energy use accounts
for roughly 80 percent of our carbon
footprint, making it our greatest
opportunity for improvement. In ourstores, roasting plants, and offices,
conserving energy is one of the mostmeaningful measures we can take toreduce our environmental impact.
Additionally, we can help transform theenergy landscape by supporting green
power.
In 2008 we announced two aggressive energy
goals for our company-owned stores: to reduceenergy consumption by 25 percent, and topurchase renewable energy equivalent to 50
percent of our electricity use. Aiming to achieveboth goals by 2010, in 2009 we made steadyprogress and gained valuable knowledge that will
help direct our course for the future.
Lighting efficiencies have been a focal point
for us in recent years. We began exploring thesubstitution of incandescent and halogen lightingwith LED lighting in 2008, but at the time foundno commercially available LED product that met
our aesthetic and functional requirements. As
a result, we turned to GE to identify a solution.
With our input, GE developed a highly energy
efficient LED product that complements our store
design approach and fits existing fixtures.
We began implementing our LED lighting
conversion program in 2009, and had completed
installation in more than 1,000 stores in the U.S. as
of September. While our electricity use decreased
by only 1.7 percent1 from 2008 to 2009, we’re
projecting a considerable reduction following
global implementation of our LED conversion

U.S. and Canada company-owned stores

We served 4.4 million more
Serve 25% of
beverages in reusable cups
beverages madein 2009 than in 2008
in our stores in
NEEDS IMPROVEMENT
reusable servewarein 2010.
We’re also looking at other innovative
or tumblers
byto2015
ways
minimize our energy use as existing
equipment and appliances are replaced upon fullU.K performance accounts for 6.70f theincrease
depreciation.

GOALS

PROGRESS

Reduce energy
consumption
by 25% in ourcompany-owned
stores by 2010

Our electricity use decreasedby 1.7% in company-owned
stores in 2009
ON TRACK

Serverware or
tumblers used
21.9 Million
times *

Serverware or
tumblers used26.3 Million
times **

1.3%

1.5%

2008

25%

2009

2015

* U.S. and Canada company-owned stores** U.S., Canada, and U.K. company-owned stores

2008

6.8 KWH

6.69 KWH

1.7% Decrease

2009

25% Decrease

2010

Average electricity use per square foot/store/month. U.S. and Canada company-owned stores.
Baseline year: 2008

Purchase renewableenergy equivalent
to 50% of theelectricity used inour company-owned
stores by 2010

Renewable energy purchases
increased to the equivalentof 25% of the electricity usedin company-owned storesin 2009211.3 Million KWH

1 Billion KWH Total

259.5 Million KWH

1 Billion KWH Total

20%

ON TRACK

2008

25%

2009

50%

2010
U.S. and Canada company-owned storesGOALS

PROGRESSIn 2009 we purchased renewable energy
Gallons
Literswater use decreased by
Reduce(throughwater 3Degrees andOur
92.3
2008 24.4
certificates
NextEra4.1%
in company-owned
consumption
storesin2009
4.1% Decrease
23.4
88.5
2009
Energy) equivalent to 25 percent of our electricity
by 25% in ouruse,company-owned
maintaining a positive three-year
trend.
ON TRACK
25% Decrease2015
Laststoresyear weby
also
continued to draw on industry
2015
guidance as a member of the World Resource
Institute Green Power Market Development
Group and the U.S. Environmental Protection
http://files.me.com/justindamer/gex1vy
Average water use per square foot/store/month. U.S. and Canada company-owned stores.
Agency Green Power Partnership. We’re currently
Baseline year: 2008
on track to significantly increase our renewableenergy purchases in 2010.

GOALS

PROGRESS

Achieve LEED®
certificationfor our new,company-owned
stores beginningin 2010

As a participant in the U.S.
Green Building Council’s
LEED® Volume Certification
pilot program, in 2009 we
submitted formal plans tobuild or renovate aminimum of 10 pilot storesaround the world
ON TRACK

1 Average electricity use per square foot/store/month. Gas use remained steady at an average of .054 therms per square foot/store/month.

Improvedindoorenvironmental
qualityWaterefficiency

Energysavings
Stewardship ofresources andsensitivity totheir impacts

CO2emissions
reduction

11

STARBUCKS™ SHARED PLANET™

Reduce energy

GLOBAL RESPONSIBILITY REPORT 2009consumption

Water

by 25% in ourcompany-owned
stores by 2010

Our electricity use decreasedby 1.7% in company-owned
stores in 2009

2008

6.8 KWH

6.69 KWH

ON TRACK

1.7% Decrease

2009

25% Decrease

2010

Average electricity use per square foot/store/month. U.S. and Canada company-owned stores.

Of all the resources on which our business
relies, water is certainly one of the mostvital. A great deal of the water that flows
into our stores is used to make coffee andtea beverages, and to run equipment suchas dishwashers and ice machines. We’recontinuously evaluating our needs anddeploying new conservation methods inorder to responsibly manage our wateruse.
In 2008 we announced plans to reduce water
consumption, and in 2009 we conducted acomprehensive water footprint audit to analyze
water use in the context of our store design,
equipment, and operations. Findings from thestudy helped us identify strategies to reduceoverall water consumption and establish
metrics. We have since set a goal to reduce water
consumption by 25 percent in company-owned
stores by 2015. From 2008 to 2009, our water use
decreased by 4.1 percent1 as a result of several
proactive measures.
Last year we took significant steps to advance
progress toward our 2015 target while prioritizing
partner (employee) and customer health andsafety. Our dipper wells (or sanitizing sinks) werea focal point. These fixtures used a continuous
stream of running water to rinse away foodresidue, keeping utensils clean and preventing
bacterial growth. Although they enabled us tomeet or exceed regulatory requirements andinternal food safety standards, they caused
considerable water waste.

1 Average water use per square foot/store/month.

We’ve been working since 2007 to find a watersaving alternative to the dipper wellsystem.
Renewable energy purchases
Purchase renewable
increased
to theIn 2009
we
began
implementingasolution
toequivalentenergy equivalentof 25% of the electricity usedcompany-owned
significantly
reducethe stores
to 50% of
the our water useinaroundin 2009
electricity
used inglobe.
Our new manually-operated
hand-meterour company-owned
faucet is now installed in all company-owned
stores by 2010
ON TRACK
stores in the U.S. (as of September 2009). Thismechanism saves approximately 150 gallons (568liters) of water per store per day.

GOALSPROGRESS

Reduce water
consumption
by 25% in ourcompany-owned
stores by 2015

Our water use decreased by
4.1% in company-owned
stores in 2009

Baseline year: 2008

211.3 Million KWH

1 Billion KWH Total

259.5 Million KWH

1 Billion KWH Total

20%
25%

2009

50%

2010
U.S. and Canada company-owned stores

Gallons

ON TRACK2008

Liters

2008

24.4

92.3

2009

23.4

88.5

4.1% Decrease
25% Decrease2015

http://files.me.com/justindamer/gex1vy
Average water use per square foot/store/month. U.S. and Canada company-owned stores.
Baseline year: 2008

GOALS

PROGRESS

We’re currently assessing opportunities to roll out
As a participant in the U.S.
Achieve LEED®
hand-meter faucets more broadly.Green
In locations
Building Council’s
certification
LEED® Volume Certification
where
not yet available, we’readopting
pilot program,in 2009 weforthey’re
our new,
submitted formal plans tonewcompany-owned
practices, including using spoons
once andbuild or renovate astoresbeginning
minimumof 10 pilot stores
settingthem
aside to be cleaned andsanitized
around the worldin2010
with other dishes. Moving forward, we’ll continue
to look for innovative ways to minimize
our water
ON TRACK
use.

Improvedindoorenvironmental
qualityWaterefficiency

Energysavings
Stewardship ofresources andsensitivity totheir impacts

CO2emissions
reduction12

to 50% of theelectricity used inour company-owned
STARBUCKS™ SHARED PLANET™
GLOBAL RESPONSIBILITY REPORT 2009stores by 2010

in company-owned storesin 2009

ON TRACKWith more than 16,000 retail locations
around the world, we’re intently focusedon green building initiatives that have therigor to help us reach our environmental
goals and the flexibility to support our
scale. Since 2001 we’ve been at theforefront of U.S. Green Building Council(USGBC) efforts to apply Leadership in
Energy and Environmental Design – orLEED® – criteria to retail structures.
Globally, LEED is the most widely
recognized green building certification
program with a presence in over 100
countries.
In 2009 we became an active participant in the
USGBC’s LEED Volume Certification pilot, whichmakes broad-scope green building plans feasible
by enabling significant cost and time efficiencies.
We’re continuing to work with other pilot
contributors to develop resources that will help
integrate the adoption of LEED into the standard
design, construction, and operations practices ofparticipating organizations.
Last year we laid the foundation to build or
renovate a minimum of 10 Volume Certification
pilot stores in six different bioregions1 aroundthe world. Once the pilot stores’ environmental
strategies are audited and approved, they can be
replicated elsewhere. This will allow us to achieve
LEED certification for all new company-owned
stores beginning in 2010.

1 Billion KWH Total

259.5 Million KWH

1 Billion KWH Total

20%

2008

25%

2009

50%

Green Building
GOALS

211.3 Million KWH

2010
U.S. and Canada company-owned stores

PROGRESSTo date we’ve secured pilot store sites in the
Our Seattle,
water use decreased byfollowing
markets:
ReducewaterSan Diego, Calif.;
4.1% in company-owned
consumption
Wash.;
Bellingham, Wash.; Atlanta,
Ga.;in Ft.
stores2009
by 25% Fla.;in ourLauderdale,
New York, N.Y.; Toronto,
Canada;ON TRACK
company-owned
Lisbon, Portugal; Dresden, Germany; Manila,
stores by 2015
Philippines; Fukuoka, Japan; and Kyoto, Japan.

Gallons

Liters

2008

24.4

92.3

2009

23.4

88.5

4.1% Decrease
25% Decrease

2015

Our global support center in Seattle, Wash., andour roasting plant in Sandy Run, S.C.,http://files.me.com/justindamer/gex1vy
have both
Average water use per square foot/store/month. U.S. and Canada company-owned stores.
Baseline year: 2008

GOALS

PROGRESS

Achieve LEED®
certificationfor our new,company-owned
stores beginningin 2010

As a participant in the U.S.
Green Building Council’s
LEED® Volume Certification
pilot program, in 2009 we
submitted formal plans tobuild or renovate aminimum of 10 pilot storesaround the world
ON TRACK

Improvedindoorenvironmental
qualityWaterefficiency

Energysavings
Stewardship ofresources andsensitivity totheir impacts

CO2emissions
reduction

earned LEED Gold certification. In addition, six ofour stores not associated with the pilot program
have either achieved or are currently registeredfor LEED certification. These stores are locatedin Hillsboro, Ore.; Seattle, Wash. (1st Avenue &Pike Street and University Village); Harrisonburg,
Va. (James Madison University); Paris, France(Disneyland Paris); and Madrid, Spain. Insideeach store, customers will find plaques that
identify green design elements and inform them
about solutions they can apply in their homes andworkplaces.

1 A bioregion is an area where climate conditions have remained essentially consistent over a period of 30 years.

13

INDEPENDENT ASSURANCEREPORTINDEPENDENTASSURANCEREPORT
To the Stakeholders of Starbucks Coffee
Coffee Company:
Company:
within thethe Starbucks
Starbucks Coffee
Coffee Company’s
We have examined the data identified below (the Data) contained within2009. Starbucks
Starbucks Coffee
CoffeeGlobal Responsibility Annual Report (the Report) for the year ended September 27, 2009.
management isis responsible for the Data. Our responsibility is to express
express an
Company’s management
an opinion on the Datalisted below based on
on ourour examination.
examination.
•

as as
contained
C.A.F.E. Practices coffee
coffee purchases
purchasesand
andpurchases
purchasesasasa apercentage
percentageofoftotal
totalcoffee
coffeepurchased
purchased
contained
in the Coffee Purchasing section (insert hyperlink to page 6)•coffee purchases
Fair Trade green coffee
purchasesasascontained
containedininthe
theCoffee
CoffeePurchasing
Purchasingsection
section (insert hyperlink to page 6)

•Certified Organic coffee purchases
purchases asascontained
containedinin thethe Coffee
CoffeePurchasing
Purchasingsection
section (insert hyperlink to page 6)•Amount of commitment to investment in farmer loans as
as contained
contained inin the Farmer Loan
Loan section
section (insert
hyperlink to page 7)

The Criteria used to evaluate the Data are contained in the sections of the Report
Report indicatedindicated above.
above.
Our examination was conducted in accordance with attestation standards established by the American
Americanincluded examining,
examining, on
on aa test
test basis,
basis, evidence
evidence
Institute of Certified Public Accountants, and accordingly, included
supporting the Data and performing such other procedures as
as we
we considered
considered necessary
necessaryinin thethe circumstances.
circumstances.
Those procedures
Those
procedures areare described
described inin more
more detaildetail inin thethe paragraph below. We believe that our examination
provides a reasonablereasonable basis
basisforforour
ouropinion.
opinion.
Our evidence-gathering procedures included, among other activities, the following:•effectiveness ofstem used to collect and compile information on the
Testing the effectivenessof thetheinternalinternal reporting
reporting sysystemin thethe Report;
Report;Data which is included in•Performing specificspecific procedures,procedures, on
on aa sample
sample basis,
basis, to validate the Data, on site at Starbucks Coffee
Trading Company
Company buying
buying operations
operations inin Lausanne,
Lausanne, Switzerland
Switzerland and Corporate headquarters in Seattle,
Trading
Washington;
Washington;•Interviewing partners (employees) responsible
responsible forfor data
data collection
collection andand reporting;reporting;•

management andand reporting
reporting structures;
structures;
including corporate
corporate policies, management
Reviewing relevant documentation, including•

ion and systems used to collect, analyze
Performing tests, on a sample
sample basis,
basis, ofof documentat
documentation
analyze andand compile
included inin thethe Report,
Report, andand
the Data that is included•

certain ofof the Data to third
third party
party confirmations
confirmations andand reports.
reports.
Confirming certain

fairly presented,
presented, inin allall materialmaterial
In our opinion, the Data for the fiscal year ended September
September 27,
27, 2009
2009 isis fairly
respects, based
based onon thethe Criteria
Criteria indicated above.

Washington
Seattle, Washington
2010
April 2, 2010www.mossadams.com
www.mossadams.com

14