2019 Starbucks Global Social Impact Report
2019 Starbucks Global Social Impact Report
2019 Starbucks Global Social Impact Report
G LO B A L
SOCIAL
I M PAC T
REPORT
MESSAGE FROM KEVIN JOHNSON
Dear Starbucks partners, customers and stakeholders:
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 2
MESSAGE FROM KEVIN JOHNSON
From the onset of the pandemic, we have moved swiftly to take for the community to gather means our stores have often served
actions to address our people and planet priorities. We’ve acted not only as a place for human connection, where everyone can
to address urgent needs related to COVID-19 as detailed and feel welcome, but also as a beacon of hope and resilience during
updated here. As an example, Starbucks has committed to a crisis – whether that’s the aftermath of an earthquake, hurricane
first-of-its-kind $10 million emergency relief fund for partners in or a wildfire, or now as we re-open and strive to provide some
both company-operated and licensed retail store markets around normalcy in the midst of the global pandemic.
the world.
As always, Starbucks partners
In the U.S. and Canada, we were able to provide temporary are the best champions of how
benefits for partners, more support for food banks and free coffee to serve their own communities.
for first responders and frontline healthcare workers. Starbucks We’re finding success when
partners are innovating in other timely, locally meaningful ways. we gain insights from the field,
Our partners in Asia have led the way in organizing food and coffee provide resources and tools
donations to hospitals, nonprofits, local police and health officials, to help inform local decisions,
and other frontline workers. And our partners around the world and enable partners to take
have echoed those demonstrations of gratitude. actions that are locally relevant.
Just as this approach applies
During the pandemic, we’ve had to pause on allowing reusable to navigating the day-to-day
cups. But we continue our commitment to shift to more reusable COVID-19 situation as it varies
packaging as well as more fully recyclable and compostable in markets around the world, it
packaging, ensuring we also prioritize health and safety. This also applies to defining relevant
requires innovation from our own experts as well as many other community service activities Seattle
alliances. and guiding The Starbucks
Foundation’s approach to addressing local communities’ needs.
And it applies to our teams in our nine Farmer Support Centers
in coffee-growing regions worldwide as they serve the needs of
coffee farmers and their communities.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 3
F O R U S, T H E P U R S U I T O F P R O F I T I S C O N S I S T E N T W I T H
OUR MISSION
Jonesboro, Ga.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 4
LEAD I N G I N S USTAI NABILITY
Expanding on our history in sustainability and progress in building a more sustainable future for coffee,
we announced in January of 2020 a multi-decade aspiration to be a resource-positive company,
giving more than it takes from the planet. The announcement included science-based preliminary
target reductions of carbon, water and waste by 2030. Informed by an environmental baseline report
it outlined five strategies to move forward, such as shifting away from single-use to reusable packaging,
and finding better ways to manage our waste. We’ll share new commitments in the spring of 2021
as we celebrate Starbucks 50th anniversary.
Goal: 100% ethically sourced coffee Goal: Train 200,000 farmers by the end of 2020
For the fifth year in a row in FY19, more than 99% of our coffee Our Global Agronomy Center and Farmer Support Center at
was verified as ethically sourced under C.A.F.E. Practices. Although Hacienda Alsacia in Costa Rica and our eight other Farmer Support
we are constantly striving for 100%, the last 1% is where some Centers around the world provide open-source training and
of our most important work happens, bringing on new farmers other resources to coffee farmers. In FY19 alone, we trained nearly
and cooperatives to help ensure the long-term future of coffee. 88,000 farmers.
We continue to work as part of the Sustainable Coffee Challenge
to make coffee the world’s first sustainable agricultural product
and improve the lives of at least one million people in coffee
communities around the world.
$
46M INVE S TE D IN FARME R LOAN S
$
20M IN FY19 EMERGENCY RELIEF FUNDS
Goal: Provide 100 million coffee trees to farmers by 2025 As of June 2020, we have invested more than $49 million in the
Starbucks Global Farmer Fund to support farmers. This comes in
Starbucks has donated coffee trees over the past four years to addition to relief funds, such as the $20 million we dispersed in
farmers in Mexico, Guatemala and El Salvador. These climate- FY19 to many of our smallholder farmers in Central America who
resilient trees replace ones that are declining in productivity due experienced the effects of low global coffee prices.
to age and disease, such as coffee leaf rust, and help improve the
quality and yields of their harvests. As of June 2020, the next
10 million are being distributed, with close monitoring of
potential complications related to COVID-19.
99% E T H I C A L LY S O U R C E D T E A *
Goal: Empower at least 250,000 women and families in coffee,
tea and cocoa growing communities globally by 2025
Goal: 100% ethically sourced tea
Through 18 grants totaling more than $5 million since 2018, The
We continue to work toward our goal of 100% ethically sourced Starbucks Foundation is supporting women and families in
tea, making significant progress from 95% in FY18 to 99% in FY19 coffee- and tea-growing communities across Africa, Asia and
by sourcing tea from farms that have been certified through Latin America in many ways, including leadership skills, income-
Rainforest Alliance, UTZ, or Fair Trade. generating activities and healthier homes.
As purchased by Starbucks global tea sourcing team.
*
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 5
LEAD I N G I N S USTAI NABILITY
G R E E N E R C U P S & PA C KA G I N G FY19 PROGRESS
12 M A J O R C I T I E S R E C YC L I N G S TA R B U C K S C U P S 10% P O S T- C O N S U M E R F I B E R
TRIALING OF NEW CUP TECHNOLOGIES Goal: 20% recycled content in our hot cups by 2022
Goal: Double the recyclability of our cups from 2016-2022;
Starbucks hot cups currently contain 10% post-consumer fiber
develop 100% compostable and recyclable hot cups by 2022
(PCF), and we are working to double the recycled content to 20%
In 2016, 24% of Starbucks stores in the U.S. and Canada accepted as well as reduce the environmental impacts of sourcing virgin
our hot cups for recycling; in 2019, this number increased to 25%. wood paper fiber we source.
Work accelerated in 2019, as the NextGen Consortium, of which
Starbucks is a co-founder, identified 12 winning cup technologies
of the NextGen Cup Challenge. In-store market testing began in the
spring of 2020 with a cup that is industrially compostable as well as
2.8% R E U S A B I L I T Y R AT E I N
MEASURED MARKETS
recyclable in markets that accept hot cups. We continue to research Goal: Double the use of reusable cups from 2016-2022
and test cup liner solutions that will make our cup easier to recycle
In 2019 we implemented new ways to track reusable cup usage,
and compost, while also working with the Consortium to improve
and we tracked a 2.8% reusability rate in company-operated
recycling and composting infrastructure. In Europe, Starbucks
stores in the U.S., Canada, Japan, and EMEA. This meant that
launched a £1 million Cup Fund supporting ambitious recycling
customers received a discount for bringing their own cup or used
projects in conjunction with the environmental charity Hubbub.
a ceramic mug offered in store, saving more than 105 million
Starbucks cups currently are accepted for recycling in Amsterdam; disposable cups. China is not yet included in this metric, with a
Boston; Chattanooga; Dallas; Denver; London; Louisville; New York; tracking program now in development there. In Europe, Starbucks
San Francisco; Seattle; Vancouver; Washington, DC; and many conducted the first ever airport reusable cup trial at London’s
smaller cities. Gatwick Airport.
CO NTI N U E D R O LLO UT O F S TR AW LE S S LI D S A N D
S U S TA I N A B L E M AT E R I A L S T R AW S
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 6
LEAD I N G I N S USTAI NABILITY
G R E E N E R R E TA I L FY19 PROGRESS
741 S T O R E S G L O B A L LY T H A T R E F L E C T T H E
GREENER STORES FR AMEWORK 72% O F G L O B A L O P E R AT I O N S P O W E R E D B Y
R E N E WA B LE E N E R GY
Goal: Build and operate 10,000 greener stores globally by 2025 Goal: Invest in 100% renewable energy to power global
operations globally by the end of 2020
Starbucks has built more than 1,600 LEED®-certified stores
around the world, and in early FY20, the Shanghai Roastery set Starbucks purchases enough renewable energy to power 100%
a new benchmark in green retail as the first in mainland China’s of its company-operated stores in the U.S., Canada and the UK.
food retail industry to be certified LEED Platinum. Now in Worldwide in FY19, 72% of Starbucks operations were powered
partnership with the World Wildlife Fund and in collaboration by renewables. This is down from 77% in FY18, driven in part
with other nongovernmental organizations, we’re going beyond by a transition away from company-owned renewable energy-
LEED, expanding the scope and breadth of our greener stores powered markets in EMEA, as well as an increase in stores in
commitment with an open-source Greener Stores framework for markets where Starbucks is still building a path toward renewable
design, construction and operation. energy, such as China and Japan.
Seattle
Wharton, Tex.
Seattle
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 7
CREATI NG MEANI NGFUL OPPORT UNITIES
Since our founding, Starbucks has a long legacy of putting our partners first and creating a culture
where everyone is welcome. In 2019, we published a Civil Rights Assessment in which Covington
& Burling LLP evaluated our ongoing efforts related to diversity, equity and inclusion and how they
support our mission and values. We continue to track annually against this assessment, reviewing its
recommendations as we plan. Our equity and inclusion activity is updated regularly here.
Among partners, our approach is to create meaningful opportunities by investing in their health,
well-being, and overall success, all while working to advance a culture of equity and inclusion.
This means ensuring that leadership demonstrates commitment and accountability to inclusion
and diversity. It means building collective understanding among all partners, and cultivating a more
inclusive workplace, where partners feel valued and a sense of belonging. It means building and
sustaining a highly engaged, high-performing, and diverse workforce at all levels. And it means
ensuring equal opportunity, pay equity, and proactive workplace resolutions.
PA R T N E R S FY19 PROGRESS
Goal: Graduate 25,000 Starbucks partners from Arizona State Goal: Continued leadership in innovative, relevant benefits for
University (ASU) by the end of 2025 full- and part-time retail employees
Starbucks College Achievement Plan is helping partners complete Starbucks continues to pioneer innovative benefits for our full-
their education through Arizona State University (ASU) online. and part-time partners in the U.S., and internationally, we continue
We are proud to continue to lead in this area, providing 100% to customize our compensation packages to remain competitive
tuition reimbursement to partners that work an average of 20 and responsive to partner feedback.
hours a week or more. As of June 2020, more than 4,500 partners
have earned first-time bachelor’s degrees since the program was The new mental health initiative announced to U.S. and Canadian
announced in 2014. partners in FY19, with further rollout in early FY20, includes efforts
to break the stigma around mental health needs, connect partners
We also continue to expand the Starbucks Global Academy, a to quality care that meet their specific needs, and provide ongoing
globally accessible platform created in partnership with ASU for training to 12,000 store managers and field leaders. In FY19 we
Starbucks partners as well as customers, community members, also announced new reimbursement for uncovered surrogacy and
and learners around the world that delivers world-class learning intrauterine insemination in the U.S. and Canada.
content and eliminates barriers to high quality education.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 8
CREATI NG MEANI NGFUL OPPORT UNITIES
PA R T N E R S FY19 PROGRESS
100% G E N D E R E Q U I T Y I N PAY I N C A N A D A
AND CHINA 17% PEOPLE OF COLOR IN SENIOR LEADERSHIP
Goal: 100% global gender pay equity in U.S. and company- Goal: At the senior leadership level, 50% women and a 50%
owned markets increase in representation by people of color since 2015
Our pay equity achievements to date were reached in FY18 and In addition to our goals related to staff leaders, our board is
maintained with continued rigor in FY19. We continue to work currently comprised of 38% women, four of whom are members
toward global pay equity. In 2019 the median pay for women of minority groups. Starbucks first Global Chief Inclusion &
globally was 98.3% of the median for men, while in the U.S., the Diversity Officer, Nzinga Shaw, was hired in November 2019.
median pay ratio was 100% for women and 100% for people of In an Update to Starbucks Civil Rights Assessment the company
color. has set new representation goals for the first time across all roles,
including, at minimum, a goal of 40% people of color and 55%
In the U.S., Starbucks and 25 other U.S. employers in the Employers women in all retail roles, and 50% women and 30% people of color
for Pay Equity consortium agreed in 2019 to work with a shared set for all enterprise roles, by 2025.
of Pay Equity Principles. We have established U.S. best practices
supporting these principles. Going forward we will establish global
Jonesboro, Ga.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 9
CREATI NG MEANI NGFUL OPPORT UNITIES
COMMUNITIES FY19 PROGRESS
Goal: Hire 100,000 Opportunity Youth by the end of 2020 Goal: Stimulate economic development in the communities
Starbucks serves while delivering high-quality products and
These hiring commitments are intended to welcome new partners services
from communities that may experience barriers to employment.
The FY19 status for Opportunity Youth is a decrease from the FY18 Starbucks Supplier Diversity and Inclusion program drives
status due to an identified technical error. inclusion of qualified women-, minority-, people with disabilities-,
veteran-, LGBTQ- and small (8(a) and HUBZone)-owned
suppliers throughout our supply chain. To continue these efforts,
~28,000 V E T E R A N S A N D M I L I TA R Y
SPOUSES HIRED
we will focus on suppliers of all sizes and will include mentorship
components to assist suppliers in developing to a point where
Goal: Hire 25,000 veterans and military spouses by 2025 they can succeed as a Starbucks supplier.
We met our military hiring goal six years early, with a new goal set
to hire 5,000 veterans and military spouses annually. More detail
on our military commitment is here.
New York
Dallas
Crestview, Fla.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 10
STRE NGTH ENI NG OUR COMMUNITIES
At Starbucks we take actions to strengthen our communities by listening, supporting, investing and
uplifting in meaningful ways – whether that’s the neighborhoods that host our stores, or the regions
that grow our coffee. In late FY19 at Starbucks Leadership Experience, we rolled out new resources and
tools to empower 12,000 store leaders in the U.S. and Canada to serve their communities in ways that
align to Starbucks global social impact priorities and are also locally relevant. We’ve seen success from
this especially during the COVID-19 pandemic, with examples tracked here.
Goal: Open Community Stores in 15 diverse, low to medium Goal: Rescue 100% of food available to donate in all U.S.
income urban communities in the U.S. by the end of 2020 company-operated stores
We’ve invested globally in 16 Community Stores, 14 in the U.S., one Starbucks FoodShare program in the U.S., which launched in 2016
in South Korea, and one in Thailand, which provide extra services in partnership with Feeding America, packages eligible unsold
and resources specific to their communities. In the U.S. in FY19, food and provides meals to food banks and mobile pantries. As of
new stores opened in Dallas, Birmingham, Ala. and Jonesboro, Ga., June 2020, we’ve now donated more than 25 million meals, with
with an expanded commitment in early 2020 to operate 100 of recent spikes as food bank needs increase. We continue to learn
them by 2025. from the many logistical challenges of ongoing perishable food
delivery as we increase the scale of this program.
3 S I G N I N G S T O R E S G L O B A L LY
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 11
STRE NGTH ENI NG OUR COMMUNITIES
T H E S TA R B U C K S F O U N D AT I O N FY19 PROGRESS
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 12
ABOU T TH IS REPORT
SCOPE I N F O R M AT I O N I N T E G R I T Y
Our Global Social Impact report for fiscal 2019 focuses on the Starbucks management is responsible for the preparation and
goals in our three key social impact areas: leading in sustainability, integrity of the information reported for fiscal 2019. Through a
creating meaningful opportunities and strengthening our system of internal controls, including a comprehensive verification
communities. We’ve also included links to information and process involving internal subject matter experts, we believe
resources publicly available at stories.starbucks.com and this information accurately represents our global responsibility
starbucks.com regarding financial, corporate governance work, activities and performance results for the fiscal year. External
workplace and diversity policies and performance, because these verification over specified metrics is provided by Moss Adams LLP.
commitments are directly tied to our business.
© 2020 Starbucks Coffee Company. All rights reserved. 2019 Starbucks Global Social Impact Report | 13