As Starbucks celebrates its 50th Anniversary, the company is expanding its Greener Store Framework to help reduce its environmental impact and leverage its scale for good to accelerate the global movement towards a more sustainable future. Starbucks is opening its first Greener Store outside of North America in Shanghai, China with a focus on circularity. The Shanghai Greener Store has been designed and built to reduce waste, repurpose goods and serve as a platform for future innovation.

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Design &amp; Construction - Creating an environmentally-conscious&nbsp;third place:

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Daily Operations – Promoting responsible living through a cup of coffee:

Customer Experience – Making sustainability part of everyday lifestyles:

Design &amp; Construction - Creating an environmentally-conscious third place

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The Shanghai Greener Store uses recycled materials and industry-first responsible materials, achieving a balance between functional use, spatial aesthetics and circularity.

Wood reclaimed from the renovation of the Beijing Sanlitun Taikooli Flagship store were used to craft the countertop of the Experience Bar, steps of the” stadium seating,” as well as door handles, giving material that would have otherwise gone into landfills a new lease of life.

Wood recovered from stores in Shanghai was used to make table tops, while table bases are made from recycled materials combined with recycled red bricks reclaimed from stores.

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The Greener Store also features a Modular Bar and Back-Of-House system constructed to enable reuse and recycling. Made of modules for different functions, the modular design allows the store to quickly adjust the bar layout, by adding, removing, or replacing bar modules to achieve different functional combinations such as ordering, beverage production, food display, and more.

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The customized setup enhances efficiency while envisioning a future-forward construction that can enable full reuse, avoiding landfill waste. Modules can be easily dismantled and reassembled in different configurations in case of future renovations or remodeling. At the ‘end of life’, modules that meet reuse standards can be refurbished and used again, hence reducing waste. &nbsp;

The store also provides a more convenient environment for Starbucks partners (employees), featuring a back-of-house wall system that connects the bar and storage space. It facilitates front-flow of materials such as ice and cups and the back-flow of waste. This reduces the number of trips partners have to make between the bar and storage area, improving operational efficiency and enabling partners to focus on connections with customers.

In addition, the store utilizes Internet of Things (IoT) and smart technologies. Air conditioners can be switched on and off automatically according to the store’s operating hours, and the lighting can be automatically adjusted to different preset modes for different times of the day. Through these technologies, the store is expected to reduce carbon emissions by around 15 percent, compared to a regular Starbucks store of the same size (2019 baseline scenario).

The art installations in the store are inspired by Hacienda Alsacia, Starbucks coffee farm in Costa Rica. Referencing the region’s topographic map as the outline, the designer used colors from the ‘bean cards’ of coffees from Starbucks top 10 coffee producing regions. The colors bring a lighter touch to the rugged mountains and terrain contours, while also highlighting Starbucks appreciation for nature. Artworks are displayed in different areas of the store and are grouped according to the three largest coffee producing regions – Asia, Africa and Latin America.

Daily Operations – Promoting responsible living through a cup of coffee

Advanced plastic-to-textile technologies are used to transform Starbucks PET cups into the iconic Starbucks green apron donned by store partners. The cups undergo deep cleaning and processing to become recycled PET fragments, which are then made into polyester chips, yarns, and fabrics, before becoming a Starbucks apron.

This recycling initiative not only helps to minimize white pollution caused by PET beverage bottles, but also reduces energy and resource consumption compared to the traditional textile industry. Each apron achieves approximately one kilogram of carbon reduction in its lifecycle.

The store will be introducing “Sustainable Coffee Classrooms” hosted by coffee masters selected from across the market. In addition to coffee knowledge and culture, customers can learn about different sustainability practices adopted by Starbucks throughout the entire coffee supply chain.

The store not only showcases the “bean to cup” journey, but also inspires people to rethink the endless possibilities of the coffee lifecycle. The store is the first in the market to recycle its coffee grounds for use as fertilizer. After composting, they can be used in suburban farms and shopping mall gardens. Customers can also take coffee grounds back home for free.

Customer Experience – Making sustainability part of everyday lifestyles

The Shanghai Greener Store is the first Starbucks store globally to host sustainability-themed exhibitions, where artists will be invited to give coffee grounds and other materials a new lease of life. Called the “Circular Lifestyle Lab,” the exhibition features sustainability-themed art installations made from recycled materials.

Kicking off the initiative is a collaboration with Tongji University’s College of Design and Innovation on an exhibition titled, “Organic Prosperity,” featuring art installations created through the imaginative use of coffee grounds and other retail waste materials. Customers can also sign up for related talks and workshops.

Customers are encouraged to bring their own tumblers and cutlery to the store. Those without their own cups or tumblers can still do their part to reduce single-use cups by purchasing a Grande-sized reusable cup for just 15 RMB when ordering beverages for on-the-go consumption. Consistent with other stores in the market, the store will provide coffee grounds straws and cutlery made of biodegradable materials, while encouraging customers to bring their own reusable cup or tumblers for 4 RMB discount.

Customers may also enjoy a scrumptious variety of plant-based food and beverage offerings. Over half of the store menu will be plant-based, including the debut of 15 new food items and two new limited-time offer beverages, while oatmilk will be used as the default option for most beverages. A range of plant-based bakery, wraps, sandwiches, salads, cakes and pastries will be available to satisfy customers’ craving at any time of the day.

From design and construction, to daily store operations and customer experience, the Shanghai Greener Store not only serves as a re-imagined third place, but also demonstrate Starbucks partners’ commitment to a sustainable future. Let us work together towards our shared aspiration.

Inside Starbucks first Greener Store in China : Starbucks Stories Asia

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Starbucks Stories Asia

Inside Starbucks first Greener Store in China

Starbucks is opening its first Greener Store outside of North America in Shanghai, China with a focus on circularity.

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https://stories.starbucks.com/asia/stories/2021/inside-starbucks-first-greener-store-in-china/

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The Shanghai Greener Store located in Qiantan Taikooli is the first Starbucks store certified under the <a href="https://stories.starbucks.com/stories/2021/starbucks-greener-stores-accelerate-global-movement-towards-a-more-sustainable-future/">Greener Stores Framework</a> to open outside North America. Starbucks has more than 2,300 Greener Stores in the U.S. and Canada and will begin using the framework outside of North America to achieve its goal of building and retrofitting 10,000 Greener Stores globally by 2025. The Shanghai Greener Store has been designed and built to reduce waste, repurpose goods and serve as a platform for future innovation. Here are 10 ways this store uniquely celebrates Starbucks Planet Positive commitments.

1. Explore the lifecycle of a coffee bean

Upon entering the store, customers will experience and participate in the ‘from bean to cup’ story behind a cup of coffee. An inspiring micro-film brings them on a journey to the coffee origin introducing Starbucks ethical sourcing approach known as Coffee and Farmer Equity (C.A.F.E) Practices. At the same time, they can enjoy Starbucks Reserve coffees brewed artfully by coffee masters selected from across the market, who will showcase their exquisite craftsmanship while relating the fascinating story behind each coffee.

At the Shanghai Greener Store, over half the menu is plant-based. Unlike other Starbucks stores, oatmilk is used as the default option for most beverages. Starbucks has also introduced two new plant-based beverages, available for a limited time only – Salted Caramel Breve and Salted Caramel Flat White. The store offers a scrumptious variety of plant-based food offerings, including the debut of 15 new food items. A range of plant-based bakery, wraps, sandwiches, salads, cakes and pastries are available to satisfy customers’ craving at any time of the day.

3. Re-use your Starbucks cup time and time again

To encourage customers to do their part for the planet, the store offers a new Grande-sized reusable cup. Customers can purchase it for just 15 RMB when ordering beverages for on-the-go consumption. Made with Polypropylene (PP), the reusable cup design is inspired by the traditional Starbucks Siren logo. Customers can also bring their own cups for 4 RMB discount.

4. Visit the “Circular Lifestyle Lab”

A “Circular Lifestyle Lab” within the store provides a platform to spotlight sustainability-themed artwork. Kicking off the initiative is a collaboration with Tongji University’s College of Design and Innovation on an exhibition titled “Organic Prosperity,” featuring art installations created through the imaginative use of coffee grounds and other retail waste materials. The store will also host talks and workshops to inspire the public on the future possibilities of sustainable development.

The store uses a bar made up of modules designed for different functions such as ordering, beverage production, food display, and more. This modular design allows the store to quickly adjust the bar layout, by adding, removing or replacing bar modules to achieve different functional combinations, should it undergo renovation or remodeling in the future. It is expected that many aspects of the store interior can be recycled, upcycled or biodegraded.

6. Reusing materials from other Starbucks stores

At the Shanghai Greener Store, customers will find traces of other Starbucks stores from across China. The store&nbsp;uses reclaimed wood from the renovations of&nbsp;other&nbsp;Starbucks stores. This includes the countertop of the Experience Bar, steps of the ‘stadium seating’, as well as door handles, which were made from wood recovered the Starbucks Beijing Sanlitun Taikooli Flagship store.

The store uses smart, energy efficient solutions for air conditioning, lighting, water usage and daily energy consumption. For example, the lighting system is entirely automated, and features multiple modes such as daytime, dusk, late night and more with customized settings.

Sustainability has been considered across every aspect of daily operations. Paper receipts have been eliminated with the introduction of e-receipts, and customers can check on the details of their orders on the Starbucks China App. LED menu boards have also replaced paper menus. These measures reduce single-use materials and minimize waste from the very beginning.

There is a special origin behind the aprons at this store – they are made from recycled Starbucks cups. Advanced plastic-to-textile technologies are used to transform Starbucks PET cups into the iconic Starbucks green apron donned by store partners. The cups undergo deep cleaning and processing to become recycled PET fragments, which are then made into polyester chips, yarns, and fabrics, before becoming a Starbucks apron. This recycling initiative not only helps to minimize white pollution caused by PET beverage bottles, but also reduces energy and resource consumption compared to the traditional textile industry. Each apron achieves approximately one kilogram of carbon reduction in its lifecycle.

10. Finding new uses for coffee grounds &nbsp;

In a first for Starbucks in the Chinese mainland, coffee grounds from the store will be recycled. A portion of the coffee grounds will be used as fertilizer in the garden outside the store and in farms located in the suburbs, while the rest will be packaged as free gifts for customers.

Top 10 Things to Know about the Starbucks Shanghai Greener Store : Starbucks Stories Asia

Top 10 Things to Know about the Starbucks Shanghai Greener Store

Check out the top things to know about Starbucks first Greener Store in China.

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The new $1 billion Sustainability Bond will support Starbucks ethical coffee sourcing and its Greener Retail initiative&nbsp;

A portion of the funds will support a new $20 million investment in responsAbility Investments AG as part of Starbucks Global Farmer Fund that supports coffee farmers and their communities

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today announced that it has completed issuance of a $1 billion Sustainability Bond. It is the largest Sustainability Bond the Company has issued to date and follows two previously issued Sustainability Bonds in <a rel="noreferrer noopener" href="https://stories.starbucks.com/press/2016/starbucks-issues-the-first-u-s-corporate-sustainability-bond/" target="_blank">2016</a>&nbsp;and&nbsp;<a rel="noreferrer noopener" href="https://stories.starbucks.com/press/2017/starbucks-offers-its-first-sustainability-bond-in-japan/" target="_blank">2017</a>.&nbsp;

“We are very pleased to see that our new Sustainability Bond attracted significant investor interest and was oversubscribed,” said Patrick Grismer, cfo of Starbucks. “The bond demonstrates Starbucks commitment to meaningful, continual progress toward our aspiration of sustainable coffee, served sustainably. It also illustrates a trend toward heavier interest from investors in our socially and environmentally focused projects – in this case supporting coffee farmers and leading in green retail.”

Grismer added that Starbucks leadership in social and environmental responsibility “is a defining element of who we are as a company. Our intent is that, by issuing a Sustainability Bond, we’re providing investors an opportunity to participate in our sustainability efforts, and our hope is that this inspires others to pursue more sustainability-related investing opportunities.”

Support for Coffee Farmers

As with the two previously issued Sustainability Bonds, funds will support ethically sourced coffee. The scope&nbsp;includes&nbsp;purchasing coffee&nbsp;that is verified by Coffee and Farmer Equity&nbsp;<a href="https://www.starbucks.com/responsibility/community/farmer-support/farmer-loan-programs" target="_blank" rel="noreferrer noopener">(C.A.F.E.) Practices</a>;&nbsp;the continued development and operation of Farmer Support&nbsp;Centers&nbsp;and agronomy research and development&nbsp;centers&nbsp;in coffee-growing regions around the world;&nbsp;and new and refinanced loans&nbsp;to coffee farmers&nbsp;made through Starbucks $50 million&nbsp;<a href="https://stories.starbucks.com/stories/2015/starbucks-more-than-doubles-global-farmer-loan-commitment/" target="_blank" rel="noreferrer noopener">Global Farmer Fund</a>.&nbsp;

New to the Starbucks Global Farmer Fund and supported by funds from the bond, Starbucks has partnered with responsAbility Investments AG, an asset manager in development investments, on a $20 million investment to provide debt financing to coffee producer organizations in Latin America, Africa and Asia to support the operations of coffee farmers. 

&nbsp;“We are excited to have the Starbucks Global Farmer Fund as a significant investor,” said Anand Chandani, Global Head of Agriculture Debt Financing at responsAbility. “We see synergies with Starbucks in building the sustainable coffee value chain, supporting smallholder farmer engagement and in fostering market linkages.”

As a new, expanded scope, the&nbsp;bond&nbsp;will also help fund&nbsp;the company’s Greener Retail commitments, including its Greener Stores initiative,&nbsp;announced in September, to design, build and operate 10,000 Greener Stores globally by 2025. The open-source Starbucks Greener Store Framework,&nbsp;which Starbucks&nbsp;developed&nbsp;in partnership with World Wildlife Fund (WWF) and SCS Global Services, focuses on commitments to energy efficiency, renewable energy, water stewardship, waste reduction and more.&nbsp;In addition to Greener Stores, funds will also support investments in greener cups and packaging as Starbucks works to reduce our environmental footprint with such projects as the global rollout of strawless lids and identifying the next generation of recyclable and/or compostable cups.

According to Sustainalytics, which provided a <a href="https://www.sustainalytics.com/sustainable-finance/wp-content/uploads/2019/05/Starbucks-Sustainability-Bond-Second-Party-Opinion_05012019.pdf">Second-Party Opinion</a> on the bond, Starbucks&nbsp;has aligned&nbsp;its Eligible Sustainability Projects in the new bond with the priorities outlined in the U.N. Sustainable Development Goals, established in 2015, as well as with the 2018 Sustainability Bond Guidelines&nbsp;(SBG).

“We applaud Starbucks efforts to broaden its social and environmental programs and to align its eligible projects with the U.N. Sustainable Development Goals,” said Heather Lang, executive director of Sustainalytics’ Sustainable Finance Solutions team. “In addition, Starbucks inclusion of its Greener Retail initiative is a meaningful addition to its Sustainability Bond.”

As with any Sustainability Bond and outlined in the Green Bond Principles, the company must report on how the funds are spent and the impact they have made against the initiatives. Starbucks will publish annual updates of the allocation of the proceeds throughout the term of the sustainability bond until the proceeds have been fully allocated to projects meeting the eligibility criteria.&nbsp;These updates will be reported publicly at www.starbucks.com and may include additional descriptions of select projects funded with sustainability bond proceeds and their environmental and/or social impacts.&nbsp;

“Morgan Stanley is proud to support Starbucks&nbsp;in their third and largest Sustainability Bond in three years, and their continued commitment to the U.N. Sustainable Development Goals,”&nbsp;said Audrey Choi, Chief Sustainability Officer at Morgan Stanley, which acted as the Sustainability Structuring Agent and a joint book-running manager on the transaction. 

“The market capacity to raise $1 billion of earmarked funds directed to Starbucks&nbsp;existing and new sustainability objectives, including the design, construction and operation of 10,000 Greener Stores globally by 2025,&nbsp;demonstrates increasing awareness and growth of support of sustainability objectives amongst the investor community,”&nbsp;added Dolph Habeck, Head of ESG Debt Syndicate at Morgan Stanley. 

The 30-year Sustainability Bond is part of a larger bond offering of $2 billion,&nbsp;with another $1 billion bond issued for general corporate purposes including the repurchase of common stock as part of the previously communicated $25 billion shareholder return target. The issuance is in line with Starbucks commitment to a leverage cap of 3x lease-adjusted EBITDAR and a minimum credit rating of BBB+Baa1. 

For more information on Starbucks priorities related to sustainable coffee served sustainably, visit <a href="https://stories.starbucks.com/stories/2019/from-ethical-sourcing-to-stores-powered-by-the-sun/">this piece</a> on Starbucks Stories. For more information on impact to date from past Sustainability Bonds, visit our website’s <a href="https://www.starbucks.com/responsibility/environment">environment</a> and <a href="https://www.starbucks.com/responsibility/sourcing/coffee">ethical coffee</a> sections.

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Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality&nbsp;arabica coffee. Today, with more than 30,000 stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at&nbsp;<a href="https://stories.starbucks.com/" target="_blank" rel="noreferrer noopener">https://stories.starbucks.com/</a>&nbsp;and&nbsp;<a href="http://www.starbucks.com/" target="_blank" rel="noreferrer noopener">www.Starbucks.com</a>.&nbsp;&nbsp;

Forward-Looking Statements Certain statements contained in this release are “forward-looking statements” within the meaning of applicable securities laws and regulations, including statements about the expected closing of a public offering or senior notes and the use of proceeds of such offering. Such forward-looking statements are based on current management expectations and satisfactions of certain conditions that are subject to various risks and uncertainties, including market conditions and those risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Starbucks Annual Report on Form 10-K for the fiscal year ended September 30, 2018, and the prospectus and prospectus supplement delivered in connection with the public offering of senior notes discussed in this release. The company assumes no obligation to update any of these forward-looking statements.

Starbucks Completes Issuance of Third and Largest Sustainability Bond : Starbucks Stories Asia

Starbucks Completes Issuance of Third and Largest Sustainability Bond

The new $1 billion Sustainability Bond will support Starbucks ethical coffee sourcing and its Greener Retail initiative.

https://stories.starbucks.com/asia/stories/2019/starbucks-completes-issuance-of-third-and-largest-sustainability-bond/

Greener retail

Inside Starbucks first Greener Store in China

Top 10 Things to Know about the Starbucks Shanghai Greener Store

Starbucks Completes Issuance of Third and Largest Sustainability Bond