Starbucks mission to inspire and nurture the human spirit extends well beyond our customers, partners and cafes. We take pride in conducting business responsibly and supporting communities where we do business, from bean to cup. As a company that buys three percent of the world’s coffee, sourced from more than 400,000 farmers in more than 30 countries, Starbucks understands our future is inextricably tied to the future of farmers and their families. 

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The cornerstone of our ethical sourcing approach to buying coffee is Coffee and Farmer Equity (C.A.F.E.) Practices, which was one of the coffee industry’s first set of ethical sourcing standards when it launched in 2004. Developed in collaboration with Conservation International, C.A.F.E. Practices is a verification program that measures farms against economic, social and environmental criteria, all designed to promote transparent, profitable and sustainable coffee growing practices while also protecting the well-being of coffee farmers and workers their families and their communities. C.A.F.E. Practices has helped Starbucks create a long-term supply of high-quality coffee and positively impact the lives and livelihoods of coffee farmers and their communities. The open-sourced program consists of more than 200 indicators – from financial reporting to protecting workers’ rights and conserving water and biodiversity. The program includes a third-party verification process that is overseen by SCS Global Services, responsible for ensuring the quality and integrity of the audits. 

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To see the full list of evaluation criteria, <a href="https://www.scsglobalservices.com/services/starbucks-cafe-practices">download the C.A.F.E. Practices scorecard</a>.

C.A.F.E. Practices is a verification program, not a one-time certification system, because we believe there is always more work to do to ensure the long-term supply of high-quality coffee and to positively impact farming communities. We are continuously improving this program by working with groups such as Conservation International to measure the true impact our purchasing programs have on participating farmers and producers. The program allows Starbucks to gain insights into the challenges faced by farmers and supply chain operations in the more than 30 different coffee-producing countries around the world.

In addition, when Starbucks is notified of zero tolerance violations, we take immediate action, conducting an investigation which could lead to suspending the commercial relationship with a farm until the case has been clarified. Based on our investigation we may ask our supplier to work with a farm to address any issue including the development of a work plan describing how the issue will be corrected. The implementation of a corrective action plan and the actual correction of any zero tolerance criteria is then re-evaluated by an approved third-party verification organization. This process ensures that any infractions are addressed effectively. We believe that our continuous improvement approach is the right approach to promote positive change amongst these suppliers and farms to ensure a positive future for everyone involved in coffee. 

Additional Farmer Support Programs:

C.A.F.E. Practices is just one of the ways in which we support our supply chains and farming communities. We have invested more than $150 million to date to increase the prosperity and resilience of the farmers and workers who grow coffee around the world by investing in coffee communities, sharing technical coffee knowledge, and innovating with new agricultural approaches. <a href="https://stories.starbucks.com/stories/2019/building-a-sustainable-future-for-coffee-together/">Click here</a> to read more about our programs including farmer loans, our open-source agronomy work, farmer support centers and tree donations.

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C.A.F.E. Practices: Starbucks Approach to Ethically Sourcing Coffee - Starbucks Stories

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Stories to inspire and nurture the human spirit

Starbucks Stories

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Starbucks Corporation

C.A.F.E. Practices: Starbucks Approach to Ethically Sourcing Coffee

Learn more about Starbucks C.A.F.E. Practices, the cornerstone of our ethical sourcing approach to buying coffee.

https://stories.starbucks.com/press/2020/cafe-practices-starbucks-approach-to-ethically-sourcing-coffee/

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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

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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;

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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

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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.

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

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