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STA R B U C K S

ACCOLADES Global Environmental & Social Impact Report 47

We are proud of the recognition we


have received for our work to help our
partners, communities and planet thrive.

FY22
100% on the Disability Equality Index by Disability:IN
100% on the Human Rights Campaign Equality Index
World’s Most Ethical Companies by Ethisphere
Fortune’s World’s Most Admired Companies
Grade A in Arjuna Capital’s Racial and Gender Pay Scorecard
100 Most JUST Companies by JUST Capital, ranked 1st in the
Restaurant and Leisure industry
Investor Relations Magazine’s Award for Best ESG
Engagement Program
Barron’s 100 Most Sustainable Companies
“Gold” rating by Newsweek as America’s Most Trusted
Brands, #1 in coffee shop category

F Y 2 3 T O D AT E
Diversity First’s 2023 Top 50 Companies for Diversity
Newsweek’s 2023 America’s Greatest Workplaces for Diversity
Fortune’s 2023 World’s Most Admired Companies
World’s Most Ethical Companies by Ethisphere
100% on the Human Rights Campaign Equality Index
100 Most JUST Companies by JUST Capital, #1 in the
Restaurant & Leisure industry
Diversity First’s 2023 Top 50 Companies for Diversity

© 2023 Starbucks Corporation. All rights reserved.


SECTION III
Global Environmental & Social Impact Report 48

LEADERSHIP
and
GOVERNANCE

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 49

Board Oversight of ESG Issues Executive Compensation Tied to ESG Performance


Our ESG goals remain tightly tied to our company’s overall strategic In FY22, we continued implementation of our executive compensation
direction. Every year, our board considers our impact agenda in programs, which were updated in 2021 to prioritize sustainability and
connection with our strategic plan. The Nominating and Corporate creating inclusive and diverse teams. To align with our vision of giving back
Governance Committee is specifically responsible for overseeing the more than we take from the planet, and to ensure the sustainability of
effectiveness of our environmental and social responsibility policies, goals coffee and other materials that are vital to our business operations, the
and programs, including a review of our annual Global Environmental annual bonus program for FY22 included a 10% of the overall bonus payout
and Social Impact Report, and making recommendations as necessary. calculation for Starbucks senior vice president and above population is
Other board committees are also involved in assessing and managing our linked to planet-positive results and another 10% of the overall bonus
environmental and social priorities through their oversight responsibilities, payout calculation was tied to fostering an inclusive environment where all
such as risk management and talent management. Additionally, we employees feel valued and included, as we believe the strength, diversity,
regularly engage with sustainability experts and influencers as informal and inclusiveness of our workforce are integral to our global brand’s success.
advisors to further our environmental and social goals.

BOARD

Our board is responsible for ensuring ESG risks and opportunities are
integrated into Starbucks long-term strategy.

NOMINATING/GOVERNANCE COMMIT TEE

Oversees, reviews and assesses the effectiveness of Starbucks ESG


strategies, policies, practices, goals and programs; annually reviews
Starbucks corporate political contributions and expenditures to ensure
alignment with Starbucks policies and values.

COMPENSATION COMMIT TEE AUDIT COMMITTEE

Oversees the development, Oversees certain ESG risks, as part


implementation and effectiveness of overall risk management, and
of Starbucks practices, policies also reviews ESG disclosures for
and strategies relating to human future regulatory reporting.
capital management as they relate
to Starbucks workforce generally.

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 50

Ethics & Compliance Speaking Up


Partners are empowered to ask for guidance and voice concerns when
Starbucks was recognized by Ethisphere as one of the World’s Most Ethical Companies for the 15th year.
they experience or see conduct that is inconsistent with our Standards
of Business Conduct, company policies or Mission and Values. While
Starbucks Ethics & Compliance program supports our Mission and Values and helps protect our culture by
Starbucks receives concerns through various channels, including line
fostering an environment that is committed to ethical leadership and conducting business with integrity. The
managers, direct contact with Ethics & Compliance partners, and our
Ethics & Compliance program makes regular reports to the Board of Director’s Audit and Compliance Committee,
Partner Resources Support Center, the vast majority of concerns are
including formal sessions several times each year.
received via our Helpline and Webline. An independent third party
At Starbucks, our goal is to help our partners do the right thing the right way. Our strategy is to innovate, elevate manages our Ethics & Compliance Helpline and Webline, both of which
and educate as we increase awareness of Ethics & Compliance as a trusted resource for partners. The approach allow partners and others to ask questions and voice concerns 24 hours
to training and communications starts with onboarding new partners based on their role and level, followed by a day, seven days a week, with interpreters available. Reports may be
quarterly training for all partners on various Ethics & Compliance topics and risk areas, including but not limited to made anonymously and are treated in a confidential manner.
Anti-Harassment, Anti-Discrimination, Insider Trading and Conflicts of Interest. We employ leadership messages,
We are committed to providing safe, confidential, and accessible
our online community and other cross functional channels to regularly reinforce these topics. Throughout the
channels to all individuals connected to Starbucks, while maintaining a
year, we analyze results and behaviors and conduct benchmarking to continue to create innovative training and
strict Anti-Retaliation Policy in compliance with our Global Human Rights
communications that inform and inspire our partners globally.
Statement. Starbucks will not tolerate retaliation against anyone who
We provide all Starbucks partners with our Standards of Business Conduct, a framework to help them make ethical raises concerns or questions about a potential violation of the Standards
decisions at work. The Standards of Business Conduct are supported by other robust global company policies of Business Conduct or any Starbucks policy that they reasonably
and training for our partners. Our internal policies cover ethics and human rights issues such as Anti-Harassment, believe to have occurred. In addition, anyone else who participates in
Anti-Discrimination, Conflicts of Interest, Gifts & Entertainment, Anti-Bribery and Equal Employment Opportunity. the investigation of such concerns (for example, as a witness) is also
In 2022, we launched 23,774 online courses to our corporate partners in 13 countries, which included nine protected from retaliation.
different risk areas. All our corporate partners receive training annually on our Standards of Business Conduct and
Harassment Prevention to help them recommit to our company values and policies. The training is branched to
include individual contributor and manager-specific content. This year’s Standards of Business Conduct course Commitment to a Respectful Workplace
featured artificial intelligence that leveraged a learner’s previous score in the same course and then focused
At Starbucks, our Mission and Values are at the heart of everything that
training content on their individual areas of opportunity. Those who demonstrated proficiency received a tailored
we do. Partners treat each other with dignity and respect and connect
learning experience and were required to review and acknowledge the associated policies and standards.
with transparency. We embrace diversity and inclusion to create a place
Starbucks has a large retail partner audience. As part of retail onboarding, all partners discuss and acknowledge where each partner can be themselves. Discrimination, harassment,
the Standards of Business Conduct and Speaking Up resources in a one-on-one discussion with their manager. bullying and retaliation have no place at Starbucks, and no partner is
The retail management audience receives annual online renewal training of risk-relevant topics and in 2022 expected to tolerate such prohibited conduct while at work or when
achieved a 96% completion rate of our Standards of Business Conduct course. In 2022, we provided online engaged in work-related activities.
courses on five different topics to more than 105,000 of our retail partners. We continue to find new avenues
to reach and train our retail hourly audience, and in 2023 we will provide annual training to 180,000 additional
partners that cover Starbucks risks and policies.

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 51

How We Conduct Investigations Responsible Tax Policies


Starbucks captures concerns from all channels in our case management As a socially responsible business, we strive to manage our global tax responsibilities in line with our mission
system, and cases are categorized and assigned by Ethics & Compliance and values. Our tax approach connects our requirements and long-term interests of all our stakeholders,
to the in-market investigations team best equipped to address the including governments, shareholders, partners and the communities where we operate and source products.
concern. If a concern was received that presented potential material In order to accomplish this, we follow several guiding principles:
financial or reputational risk, that matter would be assigned to specially
• We always consider the company’s corporate and social responsibilities, brand and reputation when
trained and highly experienced Ethics & Compliance investigators.
considering tax affairs.
Concerns are addressed in a prompt, thorough, and respectful manner,
• We aim for our tax affairs to be sustainable and equitable, and we recognize the importance of tax systems
with investigators reaching out to the reporter to gather information,
in helping governments fund policies and programs to meet the needs of their communities and residents.
relevant documentation, and witness names with knowledge of the
alleged incident. Interviews may be held with other partners, contractors, • We ensure that the location in which our taxable profits are reported is aligned with the location of value
or individuals who are the subject of a reported concern to inform an creation as dictated by our business model.
impartial decision. • We engage with all tax authorities in an open, transparent and respectful manner.
When an investigation is complete, Ethics & Compliance shares findings • We support initiatives to improve transparency on tax matters, including Organisation for Economic
with the individual(s) who reported the concern. Depending on the Co-operation and Development (OECD) measures on country-by-country reporting and automatic
findings of the investigation and the severity of any substantiated exchange of information.
wrongdoing, there are a number of possible outcomes to an investigation, • We comply with the financial and tax related disclosure and transparency requirements of the U.S.
including coaching, retraining, written documentation or separation from Securities and Exchange Commission (SEC), as well as other government institutions that require financial
employment. and tax reporting in each jurisdiction where we have operations.

Stakeholder Engagement ESG Issue Prioritization Assessment


Our ESG goals are created and evaluated through a thorough review Starbucks presence in 84 markets globally means that our business is intrinsically linked to both global and
process that involves examining materiality and identifying critical issues local ESG issues. To meet the expectations of our partners, customers, shareholders, stakeholders and the
for our business. By engaging with both internal and external stakeholders Starbucks community, we work to align our business performance with our ESG impacts. Achieving this
throughout this process, we ensure that our strategy and goals are requires a comprehensive understanding of the key ESG issues that matter most to these groups.
tailored towards key areas where we can make the greatest impact and In FY23, we undertook a robust, third-party evaluation process to identify and prioritize the ESG topics most
generate positive outcomes. This review process involves reaching out to important to our stakeholders and which issues are essential for Starbucks to focus our strategy to advance our
stakeholders directly, hosting public forums and participating in industry aspirations for our people, our planet and communities. Through this ESG Issue Prioritization Assessment, we
working groups. We intend to continue leveraging these channels on conducted surveys and interviews across global stakeholder groups to understand the relative importance of
an ongoing basis. In addition, in FY23, we significantly bolstered our ESG topics for Starbucks.
stakeholder engagement efforts through an ESG Issue Prioritization
Assessment conducted with a third party. Starbucks has an Enterprise Risk Management program (ERM) to assess risks to the organization across a broad
spectrum of strategic, operational, financial, and regulatory risks which include financial, brand and other non-
At the local level, our operations teams — including regional, district financial impacts and is further described on page 53. These risks incorporate the various ESG issues as part of
and store managers — are readily available and often actively respond our comprehensive management of risks and opportunities which are assessed at a business unit, functional
to local stakeholder inquiries and concerns. If an issue goes beyond and enterprise level.
their jurisdiction, they escalate it to the Starbucks Support Center (our
headquarters). Any ESG-related concerns are directed to the Global Social The purpose of this ESG assessment is to support the prioritization of the most critical ESG topics on which
Impact and Global Public Policy team for a response or further action. Starbucks should focus. In FY24, we will use the results of this assessment to further inform the Starbucks ERM
program, our ESG program strategies, and reporting priorities going forward to advance our leadership position
on the most critical ESG topics.

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 52

Political Expenditures Global Human Rights


At Starbucks, we are dedicated to actively engaging with the At Starbucks, we are committed to respecting human rights, as outlined in our Global Human Rights
communities we serve, and this commitment extends to our approach Statement. In 2004, Starbucks joined the U.N. Global Compact — the world’s largest corporate sustainability
to public policy. We recognize that it is our responsibility to advocate initiative — with a commitment to implement universal sustainability principles and to support U.N. goals.
for policies that promote the well-being of our business, partners Throughout FY22, we continued to work diligently to demonstrate our commitment to human rights and
and communities. To better communicate these efforts, we have human rights due diligence, from ensuring that the coffee we serve to our customers is ethically sourced to
implemented a policy to increase transparency regarding our corporate advancing racial and social equity, LGBTQIA2+ rights and disability inclusion throughout our operations.
political contributions and expenditures. This policy serves our interests
For instance, within our coffee supply chain, we leveraged our flagship C.A.F.E. Practices program to
by allowing us to promote public policies that are important to our
identify and initiate corrective action plans for 268 non-conformances in FY22. With all actual or potential
company and to educate elected and public officials about our business.
violations that were brought to our attention through C.A.F.E. Practices, we swiftly addressed them by
It also provides important information to our partners, customers
working closely with our suppliers and our on-the-ground, third-party partners to pursue corrective
and shareholders. We are committed to conducting our business
actions, including, where appropriate, providing remedy for the impacted individuals. See our program
ethically and with integrity, in accordance with the law. As part of
scorecard for the full list of human rights topics we cover.
this commitment, we adhere to the rules, regulations and standards
governing our interactions with the government, including our disclosure On the manufactured goods side, whether it’s the merchandise on our shelves or the furniture we place in
and accountability regarding political contributions and expenditures. our stores, we continued to implement our ethical sourcing program and standards for manufactured goods
and services, which includes on-the-ground factory assessments and assurance measures to identify and
remediate potential and actual violations. While the COVID-19 pandemic limited our ability to conduct
Public Policy Positions & Advocacy these on-the-ground assessments, we were nevertheless able to achieve a significant milestone in FY22:
the mapping of and transparency into 97% of our Tier 1 manufactured goods supply chain. Going forward,
Starbucks is committed to being a force for global good by advancing
we now have the transparency we need to influence, measure and report the performance of nearly our
equity and civic engagement so our partners can share their vision for
entire Tier 1 manufactured goods supply base.
stronger communities. We provide tools and resources to our partners in
the U.S. to help them participate in local and national elections. Globally, Throughout FY22, we also made significant strides in embedding human rights into our day-to-day
we work with partners, licensees and business partners to advocate for management, starting with developing a more standardized intake system for tracking and reporting
local and national policies that support our partners, the health of our human rights related concerns. These concerns can range from the items we proactively identify through
business and the communities we serve. Our work to advance equity our due diligence efforts to inquiries and grievances we receive from stakeholders and impacted individuals.
and civic engagement is always done through the lens of our Mission Going forward, this intake system will enable Starbucks to share more comprehensive information, trends
and Values. and insights to key internal and external stakeholders. In FY23, Starbucks is undertaking an independent,
third-party human rights impact assessment, which will include a deeper-level review of the principles
of freedom of association and the right to collective bargaining and is intended to help inform the
partner experience. We expect to make the results of the human rights impact assessment available to
shareholders, stakeholders, and other interested parties, subject to legal privilege considerations.
See data tables at the back of this report for FY22 performance results and trends.

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 53

Enterprise Risk Management Information Security/Cybersecurity & System Availability


The Starbucks enterprise risk management (ERM) program assesses risks Our company is dedicated to ensuring the safety and security of our information assets. We have
to the organization across a broad spectrum of strategic, operational, implemented comprehensive technologies and programs to protect against data privacy and cybersecurity
financial, and regulatory risks which include financial, brand and other risks. Our security monitoring programs regularly oversee both internal and external threats to maintain the
non-financial impacts. These risks are assessed at a business unit, confidentiality, availability and integrity of our systems. We continually evaluate our security program and
functional, and enterprise level and are reviewed by the management- invest in our capabilities to ensure the safety of our customers, partners and information assets. Our chief
led Risk Committee and the executive leadership team. The Board of information security officer is responsible for implementing controls that align with industry guidelines,
Directors has overall responsibility for risk oversight and the Audit and statutes and regulations to identify threats, detect attacks and protect our information assets. Our security
Compliance Committee is specifically charged with overseeing the monitoring capabilities alert us to suspicious activity, and our incident response program is designed to
company’s risk assessment, risk management practices and policies, restore business operations quickly and efficiently in the event of a breach.
periodically reviewing major and emerging risks to the company, including
Additionally, our partners participate in mandatory annual trainings to increase awareness of the
financial, operational, legal and regulatory risks. The Audit and Compliance
cybersecurity environment throughout the company. Our Audit and Compliance Committee, composed
Committee reviews, with management, steps taken to monitor and
entirely of independent directors, oversees data privacy and cybersecurity risk matters. One member of the
control such risk exposures, including with respect to cybersecurity,
committee has significant work experience related to information security issues and oversight. We report
data privacy, ethics and compliance among others. The committee also
security instances to the Audit and Compliance Committee as they occur and provide multiple summaries
oversees various ESG risks including environmental and sustainability as
per year. The chief information security officer also meets with the Board of Directors or the Audit and
part of its overall risk management, and reviews various disclosures in SEC
Compliance Committee at least twice annually to brief them on technology and information security
filings. The committee regularly reports on the substance of its reviews
matters. We carry insurance to protect against potential losses from cybersecurity incidents. Over the last
and discussions with management to the full Starbucks Board of Directors.
three years, we have incurred immaterial expenses related to information security breach incidences and
no penalties or settlements.

Data Privacy
Starbucks has a global responsibility to ensure all personal data collected from customers or partners are
managed securely. Our Privacy Policy describes how Starbucks collects, uses and shares data, and outlines
the rights and choices partners and customers have with respect to their information. We leverage
Privacy Impact Assessments to ensure all data use is assessed by a cross-divisional team and that the data
collected is used appropriately. We also deploy global training programs to ensure that partners are trained
on the appropriate use of any data collected.

© 2023 Starbucks Corporation. All rights reserved.


LEADERSHIP AND
GOVERNANCE Global Environmental & Social Impact Report 54

Working Directly with Our Partners


Starbucks is working side-by-side with all partners to create meaningful change toward a better future
for each other, our customers and the communities we serve. For our stores that have elected union
representation, we respect that outcome and will continue to meaningfully and directly engage in the
National Labor Relations Board’s (NLRB) good faith collective bargaining process. Starbucks is proud to
announce a new nationwide labor relations team established to support our U.S. store managers and retail
leaders. The investments make sure operations and human resource leaders have access to a dedicated
labor relations team for real-time counsel and support, help reinforce best-practices and ensure our
adherence to company policies and compliance with applicable laws — including the National Labor
Relations Act (NLRA). As of FY22, 232 U.S. stores had certified union representation. The one.starbucks.com
website was created to help anyone receive up-to-date information and resources regarding labor activities.

© 2023 Starbucks Corporation. All rights reserved.


S EBCOTUI O
A TNT HTIIST LREE P O R T subsection title Global Environmental & Social Impact Report 55

actions; the conversion of certain market restrictions; the resurgence of COVID-19 and Analysis of Financial Condition and
Scope Information Integrity
operations to fully licensed models; our infections and the circulation of novel Results of Operations” sections of the
Our Global Environmental and Social Starbucks management is responsible plans for streamlining our operations, variants of COVID-19; fluctuations in company’s most recently filed periodic
Impact report for FY22 focuses on the for the preparation and integrity of the including store openings, closures and U.S. and international economies and reports on Form 10-K and Form 10-Q and
goals in our two key social impact areas: information reported for fiscal 2022. changes in store formats and models; the currencies; our ability to preserve, grow subsequent filings.
People and Planet. We’ve also included Through a system of internal controls, success of our licensing relationship with and leverage our brands; the ability of
links to information and resources including a comprehensive verification A forward-looking statement is neither
Nestlé, of our consumer packaged goods our business partners and third-party
publicly available at stories.starbucks.com process involving internal subject matter a prediction nor a guarantee of future
and foodservice business and its effects providers to fulfill their responsibilities
and starbucks.com regarding financial, experts, we believe this information events or circumstances, and those future
on our Channel Development segment and commitments; potential negative
corporate governance work, workplace accurately represents our global events or circumstances may not occur.
results; tax rates; business opportunities, effects of incidents involving food or
and diversity policies and performance, responsibility activities and performance You should not place undue reliance on
expansions and new initiatives, including beverage-borne illnesses, tampering,
because these commitments are directly results for the fiscal year. External the forward-looking statements, which
Starbucks Odyssey; strategic acquisitions; adulteration, contamination or
tied to our business. The geographic verification over specified metrics is speak only as of the date of this report.
our dividends programs; commodity costs mislabeling; potential negative effects
scope of all data points in the report are provided by Moss Adams LLP and Burns & We are under no obligation to update
and our mitigation strategies; our liquidity, of material breaches of our information
tracked against U.S. company operations or alter any forward-looking statements,
McDonnell Engineering Inc. cash flow from operations, investments, technology systems to the extent we
unless otherwise noted. Starbucks is whether as a result of new information,
borrowing capacity and use of proceeds; experience a material breach; material
committed to United Nations Sustainable future events or otherwise.
Forward-Looking continuing compliance with our failures of our information technology
Development Goals and uses these covenants under our credit facilities and systems; costs associated with, and the
goals as a lens for our social impact Statements Stay Up-to-Date
commercial paper program; repatriation successful execution of, the Company’s
programs and collaborations with others. Our reporting on global responsibility of cash to the U.S.; the likelihood of the initiatives and plans; new initiatives and Visit stories.starbucks.com for the latest
Based on our stakeholder engagement for fiscal 2022 includes “forward- issuance of additional debt and the plans or revisions to existing initiatives or company information.
efforts, we also believe these areas are looking” statements within the meaning applicable interest rate; the continuing plans; our ability to obtain financing on
important to our customers, our partners, of applicable securities laws and impact of the COVID-19 pandemic on acceptable terms; the acceptance of the
nongovernmental organizations (NGOs) regulations. Generally, these statements our financial results and future availability Company’s products by our customers,
and investors. can be identified by the use of words of governmental subsidies for COVID-19 evolving consumer preferences and
such as “aim,” “anticipate,” “believe,” or other public health events; our ceo tastes and changes in consumer spending
Reporting Year “continue,” “could,” “estimate,” “expect,” transition; our share repurchase program; behavior; partner investments, changes
“feel,” “forecast,” “intend,” “may,” “outlook,” our use of cash and cash requirements; in the availability and cost of labor
Starbucks fiscal year 2022 or “FY22” is
“plan,” “potential,” “predict,” “project,” the expected effects of new accounting including any union organizing efforts
October 4, 2021 through October 2, 2022,
“seek,” “should,” “will,” “would,” and pronouncements and the estimated and our responses to such efforts; failure
unless otherwise noted. similar expressions intended to identify impact of changes in U.S. tax law, to attract or retain key executive or
forward-looking statements, although not including on tax rates, investments employee talent or successfully transition
Currency all forward-looking statements contain funded by these changes and potential executives; significant increased logistics
these identifying words. These statements outcomes; and effects of legal costs; inflationary pressures; the impact of
All references to currency are in
may include statements relating to proceedings. Such statements are based competition; inherent risks of operating
U.S. dollars, unless otherwise noted.
trends in or expectations relating to the on currently available operating, financial a global business including any potential
effects of our existing and any future and competitive information and are negative effects stemming from the
Previous Reports initiatives, strategies, investments and subject to various risks and uncertainties. Russian invasion of Ukraine; the prices
Starbucks has produced an annual global plans, including our Reinvention plan, Actual future results and trends may and availability of coffee, dairy and
social impact report since 2001. Previous as well as trends in or expectations differ materially depending on a variety other raw materials; the effect of legal
annual reports regarding our financial results and of factors, including, but not limited to: proceedings; and the effects of changes
are available on our website. long-term growth model and drivers; the continuing impact of COVID-19 on in tax laws and related guidance and
We also respond to key industry our operations in the U.S. and China; our our business; regulatory measures or regulations that may be implemented,
questionnaires such as the Dow Jones environmental, social and governance voluntary actions that may be put in place including the Inflation Reduction Act
Sustainability Index and the CDP efforts; our partners; economic and to limit the spread of COVID-19, including of 2022 and other risks detailed in our
Climate Change, Water and Forests consumer trends, including the impact of restrictions on business operations or filings with the Securities and Exchange
Questionnaires. inflationary pressures; impact of foreign social distancing requirements, and Commission, including in the “Risk
currency translation; strategic pricing the duration and efficacy of such Factors” and “Management’s Discussion

© 2023 Starbucks Corporation. All rights reserved.


Global Environmental & Social Impact Report 56

report appendix

SUPPORTING
DOCUMENTS &
DATA TABLES
57 Goals Summary Scorecard 64 Our Planet: Data 68 SASB Reporting 72 Human Rights

74 Occupational Health and Safety Standard 77 External Auditor Assurance Letters

© 2023 Starbucks Corporation. All rights reserved.


Global Environmental & Social Impact Report 57

goals
SUPPORTING DOCUMENTS
& DATA TA B L E S

summary
The following is a snapshot of our goals and progress for FY22.

MMXXII

scorecard

© 2023 Starbucks Corporation. All rights reserved.


SUPPORTING DOCUMENTS
& DATA TA B L E S goals summary scorecard Global Environmental & Social Impact Report 58

I NV E S T I N G I N O U R PAR T N E R S

Partner Experience & Engagement


GOAL FY22 RESULT

Starbucks College Achievement Plan (SCAP) Nearly 2,150 partners graduated from college using Starbucks College Achievement Plan (SCAP), with more than
Graduate 25,000 Starbucks partners from Arizona State 23,000 partners participating in the program.
University (ASU) by the end of 2025.

Diverse Representation — Retail POC representation across retail roles: regional vice president (31%), regional director (32%), district manager (33%),
At least 40% POC representation and 55% women in all retail store manager (39%), shift supervisor (47%), and barista (53%).
roles by 2025.
Women representation across retail roles: regional vice president (63%), regional director (50%), district manager
(61%), store manager (68%), shift supervisor (71%), and barista (73%).

Diverse Representation — Manufacturing POC representation across manufacturing roles: director (29%), manager (30%), and individual contributor (43%).
At least 40% POC representation and 30% women in all
Women representation across manufacturing roles: director (14%), manager (29%), and individual contributor (33%).
manufacturing roles (director, manager, individual contributor)
by 2025.

Diverse Representation — Corporate POC representation across corporate roles: senior vice president+ (27%), vice president (30%), director (27%),
At least 30% POC representation and 50% women for all manager (31%), and individual contributor (38%).
corporate roles by 2025.
Women representation across corporate roles: senior vice president+ (57%), vice president (55%), director (59%),
manager (55%), and individual contributor (55%).

Global Equity in Pay Starbucks has achieved and maintained 100% pay equity for women and men and people of all races performing
100% gender and racial pay equity in U.S.; 100% gender equity similar work in the U.S. and maintained gender equity in pay in our company-operated business in Canada.
in pay globally for company-operated markets.

Refugee Support More than 1,100 refugees hired in the U.S., Canada and EMEA. Donations from Starbucks enabled The Starbucks
Hire 10,000 refugees globally by 2022. Foundation to donate more than $1.3 million to support nonprofits serving refugee communities.1

Veterans and Military Family Support Hired an additional 4,580 Veterans and military spouses.
Hire 5,000 Veterans and military spouses annually in the U.S.

To Be Welcoming More than 21,000 people enrolled in the course with more than 12,000 completions.
100,000 total enrollees in To Be Welcoming to cultivate
inclusion, diversity and equity awareness.

1
While we did not meet our 2022 goal of hiring 10,000 refugees globally, we
remain committed to the refugee community and staying transparent with
partners, customers and stakeholders on our progress.

© 2023 Starbucks Corporation. All rights reserved.


SUPPORTING DOCUMENTS
& DATA TA B L E S goals summary scorecard Global Environmental & Social Impact Report 59

BUI LD I N G A MO RE EQUITABLE , S USTAI NABLE AN D RESI LI E NT FU T URE FO R CO FFE E , OUR COMM UN ITI ES AN D OUR PLAN ET

Our Stores
GOAL FY22 RESULT

Community Stores In the U.S., 7 Community Stores opened in FY22, bringing our total U.S. Community Stores to 28. In Asia,
Open 100 U.S. Community Stores by 2025; open or dedicate 8 Community Stores opened in FY22, bringing our total international Community Stores to 19 stores.
1,000 Starbucks Community Stores globally by 2030.

Military Family Stores Opened 33 Military Family Stores, bringing our total Military Family Stores to 111 stores.
Open 132 stores by 2022.

Our Communities: The Starbucks Foundation


GOAL FY22 RESULT

Origin Grants for Women and Families Achieved our goal of empowering 250,000 women and girls in coffee, tea and cocoa-growing communities, three
Empower 1M women and girls in coffee, tea and cocoa- years ahead of schedule. Announced new goal to positively impact one million women and girls in coffee, tea and
growing communities by 2030. cocoa-growing communities by 2030.

Neighborhood Grants Awarded $4.5 million in Neighborhood Grants bringing our total invested in hyper-local nonprofits to more than
Reach 25,000 hyperlocal nonprofits by 2030. $10 million, thanks to more than 45,000 nominations from partners since program launch.

Youth Equity Grants 251,715 youth impacted and $1.2 million provided in grants.
Commit $5M in grants to support BIPOC Youth.

Global Community Impact Grants Awarded over $3.2 million to nearly 90 nonprofits across 42 markets.
Reach 25,000 hyperlocal nonprofits by 2030 and commitment
to invest $30 million by 2030.

FoodShare and Hunger Relief • Nearly 13 million pounds of food in the U.S. has been diverted from waste streams and donated to hunger-relief
Reinvest $100 million by 2030 and enable food security organizations — which is the equivalent of nearly 11 million meals.
in 100 global markets by 2030.
• More than 1 million pounds of food in Canada has been diverted from waste streams and donated to hunger-
relief organizations.
• More than $10 million re-invested into hunger relief efforts in communities.
• Programs to support hunger relief are operating in 9 international markets in addition to U.S. and Canada

Community Resilience Fund $21 million invested in 12 cities through the Community Resilience Fund.
Invest $100 million in 12 cities by 2025.

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BUI LD I N G A MO RE EQUITABLE , S USTAI NABLE AN D RESI LI E NT FU T URE FO R CO FFE E , OUR COMM UN ITI ES AN D OUR PLAN ET

Our Planet
GOAL FY22 RESULT

Climate 2030 Goals 12.4% increase compared to FY19. An increase at this stage in our journey towards significant reductions in our GHG
50% absolute reduction in scope 1, 2 and 3 greenhouse (GHG) emissions is expected. We are focused on identifying and testing innovative solutions that we can scale across our
emissions representing all of Starbucks direct operations and global operations and engaging with our value chain while improving our measurement systems.
value chain.
In March 2021, Starbucks GHG reduction goal was validated as science-based by the SBTi, which confirmed our
target is aligned with a 1.5 degree Celsius pathway.

Water 2030 Goals 14.8% increase compared to FY19. Water withdrawals increased in FY22 due to increased purchasing of key
50% of water withdrawals will be conserved or replenished commodities, including packaging, non-dairy milk products, food, and tea.
across Starbucks direct operations, stores, packaging and
In August 2021, we announced an expanded water target increasing the projected water conserved or replenished
agricultural supply chain, prioritizing action in high-risk water
and catalyzing holistic watershed health improvements in high risk basins. In FY22, Starbucks began a water
basins while supporting watershed health, ecosystem
replenishment program, funding eight projects in eight global priority watersheds. The eight projects will continue
resilience and water equity.
to be implemented throughout FY23. Starbucks will report on the volumetric water benefit associated with these
programs in our FY23 GESI report.

Waste 2030 Goals 4.7% increase in operational waste sent to landfill compared to FY19. In FY22, 28% of operational waste was
50% reduction in waste sent to landfill from stores (including diverted from landfill, a 2-percentage point increase over FY19.2
packaging that leaves stores) and direct operations, driven by
Additionally, 49% of Starbucks packaging, by weight, was reusable, recyclable, or compostable in FY22.
a broader shift toward a circular economy.

Strategies for Change


GOAL FY22 RESULT

Renewable Energy In FY22, Starbucks in the U.S. and Canada maintained 100% renewable energy for company-operated retail
100% renewable energy for global operations by 2020. operations. Starbucks U.K. company-operated market has achieved the same since FY18. Renewable energy
powered 72% of company-operated facilities globally.

Greener Stores 3,596 Starbucks stores were certified Greener Stores in FY22, including 88 internationally.
Build and operate 10,000 Greener Stores globally by 2025.

2
Operational waste sent to landfill excludes packaging that leaves stores and is
disposed of by customers.

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Strategies for Change


GOAL FY22 RESULT

Double the use of reusable cups from 2016- 2022. After the reintroduction of personal reusable cups in our stores in July 2021 due to the COVID-19 pandemic, 1.2% of
beverages sold were in reusable cups in FY22, either a customer’s personal cup, “for here” ware, or a “borrow a cup”
in company-operated stores globally. We remain committed to reducing single-use plastics and packaging waste
and staying transparent with partners, customers and stakeholders on our progress.

20% recycled content in our hot cups by 2022. Completed innovation in order to roll out cups with 30% post consumer recycled fiber in FY23.3

100% compostable and recyclable hot cups developed Starbucks is continuing our work to develop compostable and recyclable hot cups in collaboration with Closed Loop
by 2022. Partners and the NextGen Consortium. In FY22, we added the following cities to our list of cities that accept cups in
their municipal recycling program: Columbus, Cleveland, Dayton, Memphis, Houston and Buffalo.4

Ellen MacArthur Foundation Global Commitment


GOAL FY22 RESULT

Take action to help eliminate problematic or unnecessary Building on Starbucks elimination of traditional plastic straws across retail stores globally in FY21, Starbucks
plastic packaging by 2025. completed the roll-out of straws made from polyhydroxyalkanoate (PHA), a non-fossil fuel derived plastic that is
home compostable, in the U.S. in FY22. In Canada, Starbucks rolled out wood cutlery and paper straws in FY22 and
continued research and development to bring new products to market in FY23-25.

Take action to move from single-use towards The company piloted reusable or returnable cup programs through 20 tests across North America, EMEA and China
reuse models where relevant by 2025. Asia-Pacific. These tests focus on multiple reusable cup programs or operating models including Starbucks Borrow
A Cup program, 100% reusable operating models, financial incentives and promotions, new customer experience
upgrades and an emphasis on personal cups and for-here ware.

Take action for 100% of plastic packaging to be reusable, 24.7% of plastic packaging was reusable, recyclable or compostable.
recyclable or compostable by 2025.

Use 5-10% recycled content across all plastic packaging 6.3% recycled content used across all plastic packaging.
by 2025.

20% reduction of virgin plastic packaging by 5.6% decrease in virgin plastic packaging compared to FY19
2025 (compared to FY19).

3
FY23: Launched a more sustainable hot cup that uses 30% post consumer recycled fiber and less plastic in the liner in Q1 of FY23.
4
Due to infrastructure challenges, Starbucks is retiring this goal. We will continue to work to advance recycling access for our cups
through our NGO partners and the NextGen Consortium.

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Coffee and Our Supply Chain


GOAL FY22 RESULT

C.A.F.E. Practices 98.2% of coffee ethically sourced and verified through C.A.F.E. Practices.7
Committed to source and verify 100% of Starbucks coffee
ethically through C.A.F.E. Practices.

Committed to 100% responsibly sourced tea. 99.7% of tea sourced by the global tea sourcing team was verified as responsibly sourced.

Committed to responsibly sourced cocoa. The company’s global cocoa sourcing team directly purchased 12 million kilograms of Rainforest Alliance certified
and segregated cocoa beans from Côte d’Ivoire (Ivory Coast).

Conserve water usage in green coffee processing by 50%. To date, contracted more than 1,300 eco-wet mills that separate the fruit of the coffee cherry from the coffee bean.

Sustainable Future of Coffee Continue working to refine the methodology we use to calculate the carbon and water footprint of green coffee.
Achieve Carbon-Neutral Green Coffee by 2030.

Climate-Tolerant Coffee Trees More than 9.5 million climate-tolerant coffee trees distributed globally through Starbucks 100 million tree
Provide 100 million trees to farmers by 2025. commitment.

Global Farmer Fund $80.8 million in loans deployed to date from Starbucks Group. FY21 results represent loans deployed from
Supply $100 million in farmer loans by the end of 2025. Starbucks Coffee Trading Company only.8

Supplier Diversity and Inclusion Nearly $900 million spent with Tier 1 diverse suppliers.
$1.5 billion in Tier 1 diverse supplier spend by 2030.

Diverse Media Spend 18% of paid media budget invested in minority-owned and targeted media companies.
Allocate 15% of paid media investment to minority-owned
and targeted media companies.

7
In FY21: Committed to 100% ethically sourced coffee in partnership with
Conservation International.
8
Methodology Update: For FY22, reporting loans deployed from Starbucks Group
(inclusive of SCTC). Expanded reporting scope from SCTC only (FY21) to reflect
the investments Starbucks has made to improve the working lives of farmers.

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Animal Welfare
GOAL FY22 RESULT

Cage-Free Eggs In our North American company-operated stores, 100% of eggs are cage-free, inclusive of branded products
100% cage-free eggs and egg products in supplied to our licensee business partners in North America. In our EMEA and U.K. company-operated markets,
company-operated stores globally. 99.9% of eggs are cage-free.

Antibiotics 100% of poultry raised without routine use of medically important antibiotics.
Serve only poultry raised without the routine use of medically
important antibiotics in all company-operated U.S. stores
by 2020.

Sow Housing 22% of pork is group-housed for U.S. and Canada.


We will specify 100% “group housed” pork as a requirement
of our pork suppliers in the U.S. and Canada and take steps to
ensure a “group housed” pork supply by 2024; Phase out the
excessive use of gestation stalls for the sows in our supply
chain by 2030.

Broiler Chickens We are actively reviewing our broiler chicken commitment to identify the best path forward for implementation
We are committed to improve conditions for broiler chickens within our supply chain. Over the next year, we will be setting baseline targets for implementation, which will be
and are working with our suppliers, licensees, and others in included in the FY23 GESI report.
the industry to help ensure that by 2024 the chicken we buy
for our U.S. stores is produced in alignment with Global Animal
Partnership (GAP) standards as assessed by a third-party auditor.

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Global Environmental & Social Impact Report 64

our planet:
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data
Annual update of Planet Positive progress:1,2,3 The following metrics represent
detailed reporting of Starbucks environmental performance in FY19, the
baseline year for our 2030 environmental targets, FY21, and FY22. We
made significant updates to our inventory methodologies this year and
recalculated FY19 and FY21 results, which will differ from the FY19 and FY21
data previously reported. We did not update our FY20 calculations because
reduced business activity in FY20 from COVID-19 make this year difficult to
use for comparisons.4 In FY22, we were not expecting significant reductions
in our environmental impacts and progress towards our 2030 targets as we
are focused on identifying and testing innovative solutions that we can scale
across our global operations. We are committed to enhancing measurement
systems and coordination across Starbucks and our value chain, including
with our licensee partners.

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The scope of this data is global unless otherwise noted. Direct operations refers to an operational control boundary, inclusive of company-
1

operated stores, corporate offices and manufacturing and distribution facilities. This includes global wholly-owned and partially-owned
subsidiaries over which Starbucks has management and operational control. Direct operations excludes licensed stores.
2
We have updated the methodologies used to develop our environmental inventories. These updates including improved data quality and
availability, changes to emissions and water factors, and other methodological changes.
3
Where possible, reported data aligns with our fiscal year. In some cases, for example utility bills, the data aligns to the nearest month rather
than the exact fiscal year end and start dates.
4
FY20 environmental performance metrics are available in Starbucks FY20 Global Environmental and Social Impact Report Supplement.

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E N E R G Y C O N S U M P T I O N (MWh) FY19 FY21 FY22

Total Energy Consumption, direct operations5 2,524,818 2,491,543 2,596,498 5


In gigajoules, total energy consumption in FY22 equals
Total purchased electricity, direct operations 1,935,927 1,912,881 1,993,189 9,347,393 GJ, and total fuel consumed in FY22 equals
2,171,912 GJ.
Percent renewable 71% 69% 72% 6
Fuel types consumed include natural gas, stationary diesel
and gasoline, propane, aviation fuel, and mobile vehicle
Total fuel consumed, direct operations 6
588,891 578,662 603,309
fuel.
7
Starbucks presents greenhouse gas emissions in
G R E E N H O U S E G A S E M I S S I O N S (mtCO2e)7,8 FY19 FY21 FY22 accordance with the GHG Protocol and uses global warming
potential values from the IPCC Fourth Assessment.
Scope 19 336,124 350,424 579,515 8
FY22 data has been third-party verified by Burns and
McDonnell. Their report is available on p. 79.
Scope 2 9
Refrigerant emissions from retail HVAC equipment
market-based 322,823 331,274 293,364 have only been estimated for China and the UK. Global
refrigerant emissions from non-retail facilities were not
location-based 805,258 778,002 789,349 estimated.
sub-total scope 1 + 2 market-based emissions 658,947 681,698 872,879
10
Scope 3 emissions utilize location-based values.
11
Category 1 emissions includes land use change (LUC)
Scope 3 10
for purchases of coffee, tea, cocoa, and food and other
beverage ingredients and dairy and non-dairy milks. LUC is
1 Purchased goods and services11,12 7,327,716 7,379,337 7,683,841 defined as a change from one land-use category to another
2 Capital goods 144,036 123,701 168,238 as a result of human activity. We use the Quantis LUC
methodology, which accounts for year-to-year, country-
3 Fuel- and energy-related activities 166,071 157,102 177,249 level LUC over 20-year intervals, including primary and
secondary forest loss; peatland drainage and degradation;
4 Upstream transportation and distribution 702,627 693,801 666,369 and soil erosion and degradation.
5 Waste generated in operations 264,872 258,269 275,867 12
Category 1 emissions include the emissions from the
purchased goods and services made by Starbucks
6 Business travel 29,343 4,027 12,914 Corporation. Purchases made by licensees for key
commodities are included in category 14 as recommended
7 Employee commuting 615,170 652,928 707,180
by the GHG Protocol.
8 Upstream leased assets13 Not relevant 13
Starbucks does not have significant upstream leased assets.
14
Downstream transportation emissions were calculated for
9 Downstream transportation and distribution14 287,981 419,905 450,777
the first time for FY19, FY21 and FY22. Sources of emissions
10 Processing of sold products 159,018 147,834 160,043 include delivery and vehicle idling in drive-thru lines.
15
Starbucks does not act as a lessor.
11 Use of sold products 59,772 55,725 56,766 16
A methodology change was made to Category 14 to include
12 End-of-life treatment of sold products 160,929 168,997 186,837 refrigerant, fugitive and process gas emissions for licensee
stores and to exclude transportation data (not paid for by
13 Downstream leased assets 15
Not relevant Starbucks) per the GHGP guidance.
17
Total GHG emissions from fluid dairy purchases is inclusive
14 Franchises16 3,130,274 2,907,856 3,790,309
of fluid dairy categorized in scope 3 category 1 and
15 Investments 213,820 268,676 304,167 category 14, and include estimated LUC associated with
these purchases.
subtotal scope 3 emissions 13,261,628 13,238,157 14,640,557 18
Total GHG emissions from green coffee purchases
Total emissions (scope 1 + 2 market-based + 3) 13,920,575 13,919,496 15,513,436 is inclusive of estimated LUC associated with these
purchases included in scope 3 category 1.
Percent of total GHG emissions from fluid dairy purchases17 18% 17% 16% 19
Total FY21 GHG emissions from green coffee purchases
is estimated based on FY22 country-specific emission
Percent of total GHG emissions from green coffee purchases18,19 14% 12% 12%
factors and total purchases from relevant countries.
Percent reduction of total emissions from FY19 baseline -11%

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W A T E R W I T H D R A W A L S (megaliters)8,20 FY19 FY21 FY22

Total water withdrawal 4,258,690 4,009,991 4,888,900 20


In FY22, Starbucks began a water replenishment program,
Direct operations21,22 22,855 22,605 23,867 funding eight projects in eight global priority watersheds.
Starbucks aims to report on the volumetric water benefit
Percent water withdrawn from high-risk basins23 Not calculated 33% 29% associated with these programs in our FY23 GESI report.
21
Water withdrawal from stores includes both primary
Indirect: licensed stores 21
13,835 18,656 22,750
and estimated data. Where primary data is not available,
Percent water withdrawn from high-risk basins23 Not calculated 42% 45% water withdrawal is estimated by applying an average
water withdrawal factor derived from U.S. and Canada
Indirect: packaging and agricultural commodities purchased 24
4,222,001 3,968,730 4,842,283 company-owned stores.

Percent reduction of total water withdrawal from FY19 baseline -15%


22
Starbucks withdraws water strictly from local water
utilities or similar relevant entities, and as such all of
our water withdrawals are categorized as sourced from
third-party water.
O P E R A T I O N A L W A S T E (thousand metric tons)8,25 FY19 FY21 FY22 23
High risk basins refers to water withdrawals from
facilities located in regions of high or extremely-high
Total weight of non-hazardous operational waste 1,154 1,108 1,236 baseline water stress as defined by WRI Aqueduct tool,
which was used to conduct this assessment.
Direct operations generated 26
824 836 903 24
Water withdrawal from packaging and agricultural
commodities is estimated using country-level or
Percent organic 54% 54% 54%
regional data from the World Food Lifecycle Database
Percent diverted27 28% 30% 30% (WFLDB). Reporting of this category aligns with our GHG
inventory, scope 3, category 1.
Indirect: generated in licensed stores 28
330 273 333 25
A methodology change was made in the FY19 and
Percent organic 56% 58% 55% FY21 inventories to update operational waste values
and classifications to be consistent with internal data
Percent diverted27 21% 22% 22% tracking and estimation methodology improvements
established in FY22. We are not reporting on waste
Percent total non-hazardous operational waste, diverted27 26% 28% 28% discarded by customers out of stores and instead have
expanded our reporting of packaging materials.
26
Reporting of this category aligns with the GHG
inventory, scope 3, category 5.
27
We measure diversion as waste materials recycled,
remarketed, composted, donated, or sold to be
processed in cattle feed. Diversion does not include
materials sent to landfill, incineration (with or without
energy recovery) or liquid waste sent down the drain
(excludes water).
28
Licensed store non-hazardous waste is estimated
based on company-owned store information. This
does not include construction & demolition waste or
e-waste. Reporting of this category aligns with the GHG
inventory, scope 3, category 14.

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P A C K A G I N G M A T E R I A L S 29 (thousand metric tons) FY19 FY21 FY22

Total weight of packaging material30 389 387 400 29


Data represents packaging materials used in our direct
Percent of packaging made from recycled or renewable materials 30% 29% 31% operations and licensed stores and all other packaging
materials purchased by Starbucks Corporation. This
Percent of materials recyclable, compostable or reusable 45% 46% 49% aligns with our GHG Inventory and Ellen MacArthur
Foundation Global Commitment reporting boundaries.
Direct: total weight of packaging materials purchased by Starbucks Starbucks branded products sold outside of our stores
259 270 267
Corporation31 is part of a licensed model of the Global Coffee Alliance
with Nestlé, while our global ready-to-drink businesses
Indirect: total weight of packaging materials purchased by licensees for operate under collaborative relationships with PepsiCo
129 115 133
Starbucks retail operations32 and others. The Starbucks branded packaging used by
Channel Development business partners are part of their
Total weight of plastic packaging materials33 152 163 153 commitments and reporting.
Total weight of virgin plastic packaging materials 144 154 136
30
Data represents paper and plastic packaging materials,
our most significant sources of packaging materials.
Percent reduction of virgin plastic packaging materials from FY19 baseline 6% Reporting of this category aligns with packaging materials
31

reported in the GHG inventory under scope 3, category 1.


Percent of plastic packaging that is reusable, recyclable or compostable 34
18% 18% 25% 32
Reporting of this category aligns with packaging materials
Percent of post-consumer recycled content used in our plastic packaging 5% 5% 7% reported in the GHG inventory under scope 3, category 14.
33
FY19 and FY21 inventories have been recalculated to align
to methodology changes and data quality improvements
made as part of the FY22 inventory. These results may
differ from what has been previously submitted to Ellen
MacArthur Foundation Global Commitment and WWF
ReSource Plastic and we anticipate restating these
metrics in our 2023 reporting to these organizations.
34
In assessing the recyclability of our portfolio Starbucks
has aligned with the New Plastics Economy 2022
Recycling Rate Survey results.

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Global Environmental & Social Impact Report 68

sasb
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reporting
Sustainability Accounting Standards Board Reporting

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TOPIC & ACCOUNTING METRIC SASB CODE F Y22 S TARBUCKS RESP ONSE

Energy Management
(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable FB-RN-130a.1 See FY22 Global Environmental & Social Impact Report narrative, p. 34.
See Our Planet: Data, p. 64.
Additional information is available in our CDP Climate Change response.

Water Management
(1) Total water withdrawn, (2) total water consumed, percentage of each in regions FB-RN-140a.1 See FY22 Global Environmental & Social Impact Report narrative, p. 37.
with High or Extremely High Baseline Water Stress
See Our Planet: Data, p. 64.
Additional information is available in our CDP Water Stewardship response.
Total volume of water consumption is not monitored as we do not typically
have discharge meters in our stores and do not track how much water goes into
beverages. Therefore, we are disclosing on water withdrawn from regions with
high or extremely high baseline water stress.

Food & Packaging Waste Management


(1) Total amount of waste, (2) percentage food waste, and (3) percentage diverted FB-RN-150a.1 See FY22 Global Environmental & Social Impact Report narrative, p. 29 and 36.

(1) Total weight of packaging, (2) percentage made from recycled and/or renewable FB-RN-150a.2 See Our Planet: Data, p. 64.
materials, and (3) percentage that is recyclable, reusable, and/or compostable Additional information about our packaging is available via our reporting to
WWF ReSource and the Ellen MacArthur Foundation Global commitment.

Food Safety
(1) Percentage of restaurants inspected by a food safety oversight body, FB-RN-250a.1 Starbucks is always committed to the health and safety of our customers
(2) percentage receiving critical violations and partners. We regularly audit and review product quality and food safety
practices. We validate our policies and procedures to ensure they are effective
(1) Number of recalls issued and (2) total amount of food product recalled FB-RN-250a.2
and up to date. We actively communicate with our partners and customers
Number of confirmed foodborne illness outbreaks, percentage resulting in U.S. FB-RN-250a.3 through starbucks.com and other communication channels on product-related
Centers for Disease Control and Prevention (CDC) investigation nutritional and safety information.

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TOPIC & ACCOUNTING METRIC SASB CODE F Y22 S TARBUCKS RESP ONSE

Nutritional Content
(1) Percentage of meal options consistent with national dietary guidelines and FB-RN-260a.1 Starbucks provides transparent information to ingredients, calories and other
(2) revenue from these options nutritional information. Additional information is available on starbucks.com.

(1) Percentage of children’s meal options consistent with national dietary FB-RN-260a.2 Starbucks reviews our marketing and advertising for compliance with all
guidelines for children and (2) revenue from these options applicable laws, including the Federal Trade Commission’s truth-in advertising
standards. We also design our digital content to be compliant with the
(1) Number of advertising impressions made on children and (2) percentage FB-RN-260a.3 Children’s Online Privacy Protection Act (COPPA). Additional information is
promoting products that meet national dietary guidelines for children available in Starbucks Global Human Rights Statement.

Labor Practices
(1) Voluntary and (2) involuntary turnover rate for restaurant employees FB-RN-310a.1 Starbucks is committed to being an employer of choice and maintaining the
strength of our workforce. In FY22, the total partner turnover in North America
(1) Average hourly wage, by region and (2) percentage of restaurant employees FB-RN-310a.2 (U.S. and Canada) was nearly 65%, significantly lower than industry turnover rates.
earning minimum wage, by region Starbucks makes available online our Commitment to Partners and our workforce
data for the U.S. business. There is additional information available on Human
Capital Management in our Form 10-K Filing, p. 2.
As of FY22, 100% of U.S. partners earn above minimum wage. As of FY22, Starbucks
hourly partners earn nearly $17/hour in the U.S. Additional information about
Starbucks labor practices is available at Starbucks Commitment to Partners.

Supply Chain Management & Food Sourcing


Percentage of food purchased that (1) meets environmental and social sourcing FB-RN-430a.1
standards and (2) is certified to third-party environmental and/or social standards
Starbucks ethical sourcing approach integrates social and environmental standards
Percentage of (1) eggs that originated from a cage-free environment and (2) pork FB-RN-430a.2 and is an expectation for suppliers and business partners. Additional information is
that was produced without the use of gestation crates available in the Starbucks Global Human Rights Statement, Our Supply Chain.
See FY22 Global Environmental & Social Impact Report narrative, p. 43.
Discussion of strategy to manage environmental and social risks within the supply FB-RN-430a.3
chain, including animal welfare

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TOPIC & ACCOUNTING METRIC SASB CODE F Y22 S TARBUCKS RESP ONSE

Activity Metrics
Number of (1) company-operated and (2) franchise locations FB-RN-000.A As of October 2, 2022, Starbucks operated 18,253 Company-Operated and
17,458 Licensed locations. Additional information is available in the Starbucks
Number of employees at (1) company-operated and (2) franchise locations FB-RN-000.B Fiscal 2022 Annual Report, p. 6 and p. 8.
As of October 2, 2022, Starbucks employed approximately 402,000 people
worldwide. Additional information is available in the Starbucks Fiscal 2022
Annual Report, p. 4

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Global Environmental & Social Impact Report 72

human
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rights
Coffee and Farmer Equity (C.A.F.E.) Practices is our ethical sourcing
verification program with a comprehensive list of zero tolerance indicators
that measures farms against economic, social and environmental criteria,
designed to promote transparent, profitable and sustainable coffee growing
practices while protecting the well-being of coffee farmers and workers,
their families and their communities.

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Coffee
ZERO TOLER ANCE INDICATOR # OF NONCOMFORMITIES % OF TOTAL NONCONFORMITIES
Starbucks ethical sourcing program is dedicated to
Nonconformities related to wage practices 89 34% monitoring 100% of our C.A.F.E. Practices-approved
coffee supply chains, which today represents
Nonconformities related to traceability requirements 68 26% more than 400,000 farmers around the world.1 A
Nonconformities related to child labor 54 21% nonconformity as reported in this table is a breach
of any one of Starbucks zero tolerance indicators.
Nonconformities related to labor intermediaries 13 5%
Multiple nonconformities could be identified in
Nonconformities related to transparency requirements 1 0% a single location. In FY22, we verified or audited
644 coffee supply chains and identified 268 zero
Nonconformities related to banned pesticides 3
23 9%
tolerance nonconformities in 83 supply chains.2 For
Nonconformities related to forced labor, abuse, or unethical each zero tolerance non-conformity brought to our
13 5%
recruitment practices attention through C.A.F.E. Practices, we swiftly address
Nonconformities related to deforestation 7 3% them by working closely with our suppliers and
our on-the-ground, third-party partners to pursue
268 100%
corrective actions, including, where appropriate,
% of nonconformities remediated or closed in FY22 84% providing remedy for the impacted individuals. At the
time of producing this report, 84% of zero tolerances
identified through audits that occurred during FY22
Manufactured Goods have been remediated. Due to the seasonal nature
of coffee production, some zero tolerance indicators
ZERO TOLER ANCE INDICATOR # OF NONCOMFORMITIES % OF TOTAL NONCONFORMITIES may only be closed during the harvest period when
the majority of temporary workers are present and
Nonconformities related to wage practices 21 60%
therefore fully closing these indicators may require
Nonconformities related to transparency requirements 6 17% waiting until the next coffee harvest. In the event
a zero tolerance indicator cannot be resolved in a
Access denial into facilities for audits and inspections 1 3%
timely and comprehensive manner, a supply chain
Health and safety, including direct and immediate endangerment 0 0% will be considered Non Compliant and not eligible for
Environmental impact 0 0% C.A.F.E. Practices approval until resolution is possible.
For more information on our responsible sourcing
Forced labor 6 17%
practices for Manufactured Goods and Services, see
Child labor 1 3% page 43.
Abuse and harassment 0 0%
A “coffee supply chain” is a network of farms, mills, and
1

35 100% warehouses. We work with more than 1,100 coffee supply chains,
which are made up of more than 400,000 individual farms.
% of nonconformities remediated or closed in FY22 67% 2
All coffee supply chains are verified or audited at regular
intervals by approved verification organizations and with
oversight provided by SCS Global Services that includes
additional audits. While exceptions exist, as a general rule, we
audit all supply chains with large-scale farms every year and
supply chains with small and medium farms every two years.
3
Includes pesticides classified as Type 1a or 1b by the World
Health Organization.

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Global Environmental & Social Impact Report 74

occupational
SUPPORTING DOCUMENTS
& DATA TA B L E S

health
Starbucks is committed to the safety of our partners, customers and
physical assets. The Global Safety and Security Policy provides the
structure for maintaining a safe and secure working environment.

and safety The purpose of this Standard is to provide requirements in


alignment with occupational health and safety regulations.

standard MMXXII

© 2023 Starbucks Corporation. All rights reserved.


SUPPORTING DOCUMENTS
& DATA TA B L E S occupational health and safety Global Environmental & Social Impact Report 75

Annually, Occupational Health and Safety (OH&S) program elements Definitions


(written program, training, and assessments), are reviewed, edited,
and endorsed by Starbucks senior leadership. Adherence to this TERM DEFINITION
Standard ensures a current and compliant program defined under
OH&S Code expectations. Occupational Verification of the implementation of occupational safety, which may be self-
Safety Assessments administered, or externally completed.
Following this Standard reduces hazards, injuries, prevents physical and
psychological illnesses, and nurtures the core safety need for protection Written and publicly available regulation associated with injury prevention
from elements, security, order, law, stability, and freedom from fear. Code (e.g., Occupational Safety and Health Administration (OSHA), Worker Rights Act,
This Standard applies to all employees (partners) of Starbucks Health and Safety Executive, etc.)
Corporation and its wholly-owned subsidiaries in North America for
Hazard A danger or risk that could lead to an injury.
the following locations:
• All company-operated retail stores in the United States and Operational
Canada Daily Records Book, Duty Roster, and Safety Committees agendas.
Resources
• All Siren retail locations, which include Princi, and commissary
kitchens (excludes roasting facilities)
Safety The condition of being protected from, or unlikely to cause, danger, risk, or injury.
• Support centers
• It also applies to non-partner workers engaged by Starbucks,
including vendors, suppliers, and professional service providers in Administrative groups which function to support the operations for retail locations
Support Teams
(e.g., Facilities, Food Safety, Partner Resources, etc.).
these locations

Written reports from enforcement agencies (e.g., Ministry of Labour, OSHA) that document
Violations/
a case of non-compliance to the written Codes. In the U.S., severity of Violation is tiered:
Citations
General, Repeated, or Willful. Each tier has associated financial penalties.

© 2023 Starbucks Corporation. All rights reserved.


SUPPORTING DOCUMENTS
& DATA TA B L E S occupational health and safety Global Environmental & Social Impact Report 76

Requirements
The below outlines expectations of partners for the purpose of maintaining an OH&S compliant program:
• Partners must complete occupational safety training comprised of new hire orientation, on-going
reiterative content, and other occupational safety training as determined by the Starbucks Global
Safety and Compliance team.
• Partners must utilize the occupational health and safety guidelines described in the Safety and
Security Manual.
• Non-Support Center partners are responsible for completing occupational safety self-assessments
as described in Operational Resources, as applicable.
• When hazards are identified, non-Support Center partners are required to report them using a self-
assessment, as referenced above.
• Non-Support Center partners have a duty to ensure that all Operational Resource documents are
archived per the Starbucks Record Retention Schedule.
• Partners must report incidents of workplace injury or illness to Starbucks third party administrator in
the U.S. and Canada, and/or harassment to the Ethics & Compliance team.
• Partners must follow the guidance of Store Evacuation/Shelter-in-Place Procedures available to
retail partners and Emergency Actions Plans available on the Partner Hub to Support Center partners,
and as described in the Safety and Security Manual.
• Managers are responsible for ensuring partners are aware of and following the above requirements.
• Failure to comply with this Standard and related governance tools may result in disciplinary action,
up to and including termination of employment. Decisions regarding corrective action, or immediate
termination, rests within the sole discretion of Starbucks management.
• The OH&S program must strive for continuous improvement to ensure the safest working
environment for all partners, and program feedback should be addressed to the Global Safety &
Compliance team by email.

© 2023 Starbucks Corporation. All rights reserved.


Global Environmental & Social Impact Report 77

external
SUPPORTING DOCUMENTS
& DATA TA B L E S

auditor
MMXXII

assurance
letters

© 2023 Starbucks Corporation. All rights reserved.


Report of Independent Accountants

To the Stakeholders of Starbucks Coffee Company


We have examined the data identified below (the Data) contained within Starbucks Coffee Company’s
Global Environmental and Social Impact Report (the Report) for the fiscal year ended October 2, 2022.
Starbucks Coffee Company’s management is responsible for presenting the Data for the fiscal year ended
October 2, 2022 in accordance with the criteria contained in the respective sections of the Report indicated
below (the Criteria). Our responsibility is to express an opinion on the Data based on our examination:

• 98.2% ethically sourced coffee purchases as contained in the Ethical Sourcing Performance
(C.A.F.E Practices) section on page 39 of the Report;
• 99.7% ethically sourced tea purchases as contained in the Responsible Sourcing for Tea section on
page 42 of the Report;
• 12 million kilograms of segregated cocoa beans purchased from Cargill as contained in the
Responsible Sourcing for Cocoa section on page 42 of the Report;
• Investment in farmer loans since FY18 of $65.8 million as contained in the Global Farmer Fund
section on page 41 of the Report.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Data is in accordance with the Criteria, in
all material respects. An examination involves performing procedures to obtain evidence about the Data.
Those procedures are described in more detail in the paragraph below. The nature, timing, and extent of
the procedures selected depend on our judgment, including an assessment of the risks of material
misstatement of the Data, whether due to fraud or error. We believe that the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
Our evidence-gathering procedures included, among other activities, the following:

• Testing the effectiveness of the internal reporting system used to collect and compile information on
the Data which is included in the Report;
• Performing specific procedures, on a sample basis, to validate the Data, through communications with
Starbucks Coffee Trading Company buying operations in Lausanne, Switzerland, and Corporate
headquarters in Seattle, Washington;
• Interviewing partners (employees) responsible for data collection and reporting;
• Reviewing relevant documentation, including corporate policies, management and reporting
structures;
• Performing tests, on a sample basis, of documentation and systems used to collect, analyze and
compile the Data that is included in the Report, and
• Confirming certain of the Data to third-party confirmations and reports.
We are required to be independent of Starbucks Coffee Company and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our examination engagement.
In our opinion, the Data for the fiscal year ended October 2, 2022, is presented in accordance with the
Criteria, in all material respects.

Seattle, Washington
April 17, 2023
Memorandum

Date: March 31, 2023

To: To the Board of Directors and Stakeholders of Starbucks Coffee Company

From: Emily Robbins – Burns & McDonnell

Subject: Verification Report for FY2022 Greenhouse Gas Inventory, Water Withdrawals
Inventory, and Operational Waste Inventory

Burns & McDonnell Engineering Company, Inc. (Burns & McDonnell) was retained by
Starbucks Corporation (Starbucks) to verify and provide a third-party assessment of the 2022
Greenhouse Gas (GHG) Emissions Inventory, Water Withdrawals Inventory, and Operational
Waste Inventory for Fiscal Year (FY) 2022. The purpose of assessment was to verify that the
FY2022 GHG Emissions Inventory, Water Withdrawals Inventory, and Operational Waste
Inventory represents a reasonable and accurate account of Starbuck’s GHG emissions, water
withdrawals and operational waste.

Inventory Summary
Verified values for Starbucks’ FY 2022 GHG, Water Withdrawals, and Operational Waste
Inventories are shown below in Table 1.

Table 1: Verified Inventory Summary

Metric Total
Total GHG Emissions (Scope 1 + Scope 2 Market-based + 15,513,436 metric tonnes
Scope 3) CO2e
Total Water Withdrawal (from direct operations, licensed 4,888,900 megaliters
stores, and agricultural and packaging commodities purchased
by Starbucks)
Total Weight of Non-Hazardous Operational Waste 1,235,899 metric tonnes

Greenhouse Gas Emissions Inventory


Burns & McDonnell reviewed Scope 1, Scope 2, and Scope 3 GHG emissions as presented in the
“FY22 SBUX Scopes 1 & 2 and Operational Water Inventory 10MAR2023.xlsx” and “FY22
SBUX Scope 3 and Indirect Water Inventory_15MAR202.xlsx” excel workbooks for the fiscal
period October 4, 2021 through October 2, 2022. The GHG emissions data included in the
emissions inventory that were subject to review consisted of the following for each Scope:

Scope 1: Direct GHG Emissions

• Fuel combustion (retail and non-retail facilities, roasting)


• Process emissions from roasting
• Refrigerant losses from stationary equipment
Memorandum (continued)

April 5, 2023
Page 2

• Process emissions of nitrous oxide (whipped cream chargers)


• Corporate jet fuel use
• Plant vehicle fuel use

Scope 2: Indirect GHG Emissions


• Purchased electricity usage (market based and location based)
• District heating and cooling

Scope 3: Corporate Value Chain


• Category 1 – Purchased Goods and Services
• Category 2 – Capital Goods
• Category 3 – Fuel- and Energy-Related Activities
• Category 4 – Upstream Transportation and Distribution
• Category 5 – Waste Generated in Operations
• Category 6 – Business Travel
• Category 7 – Employee Commuting
• Category 9 – Downstream Transportation and Distribution
• Category 10 – Processing of Sold Products
• Category 11 – Use of Sold Products
• Category 12 – End of Life Treatment of Sold Products
• Category 14 – Franchises
• Category 15 – Investments

It should be noted that this inventory is based on the Fourth Assessment Report (AR4) Global
Warming Potential Values developed by the Intergovernmental Panel on Climate Change (IPCC)
Fourth Assessment Report.

The GHG inventory assurance review was conducted in accordance with the ISO 14064-3
Standard and World Resources Institute GHG Protocol based on evidence of the reliability of the
procedures undertaken to develop the GHG Emissions Footprint. To the best of our knowledge,
Burns & McDonnell has found with moderate assurance that Starbucks has satisfactorily
compiled a reasonable and fair account of their GHG emissions for FY 2022. The verified values
for Scope 1, 2 and 3 are shown below in Table 1.

Water Withdrawals Inventory


In order to complete this moderate assurance of Starbucks’ FY2022 Water Withdrawals
Inventory, Burns & McDonnell utilized the AA1000AS Quality Assurance Standard and
obtained, analyzed and verified data related to water withdrawals as described below. Data were
reviewed as presented in “FY22 SBUX Scopes 1 & 2 and Operational Water Inventory
Memorandum (continued)

April 5, 2023
Page 3

10MAR2023.xlsx” and “FY22 SBUX Scope 3 and Indirect Water Inventory_15MAR202.xlsx”


excel workbooks for the fiscal period October 4, 2021 through October 2, 2022. This review
included:
• A review of Starbuck’s operations and facility activities for the purposes of verifying the
water withdrawals.
• A qualitative review evaluating water withdrawals potentially omitted from the FY2022
Water Withdrawals Inventory and the impact on the overall inventory accuracy.
• A review of the processes and procedures utilized to gather data for and develop the
FY2022 Water Withdrawals Inventory.
• An examination of Starbucks’ 2022 Water Withdrawals Inventory report and electronic
workbook spreadsheets utilized to calculate water withdrawals.

Operational Waste Inventory


In order to complete this moderate assurance of Starbucks’ FY2022 Operational Waste
Inventory, Burns & McDonnell utilized the AA1000AS Quality Assurance Standard and
obtained, analyzed and verified data related to operational waste as described below. Data were
reviewed as presented in “FY19 - FY22 SBUX Global Operational Waste Inventory
13MAR2023.xlsx”. This review included:
1. A review of Starbuck’s operations and facility activities for the purposes of verifying the
operational waste inventory.
2. A qualitative review evaluating operational waste potentially omitted from the FY2022
Operational Waste Inventory and the impact on the overall inventory accuracy.
3. A review of the processes and procedures utilized to gather data for and develop the
FY2022 Operational Waste Inventory.
4. An examination of Starbucks’ 2022 Operational Waste Inventory report and electronic
workbook spreadsheets utilized to calculate operational waste for FY2022.
5. Burns & McDonnell generally assumed that raw source data provided were accurate.

Statement of Independence

This verification and third-party assessment was performed with no conflicts of interest in
relation to providing the assurance of the FY2022 Greenhouse Gas Inventory, Water
Withdrawals Inventory, and Operational Waste Inventory for Starbucks.
GLOBAL
STA R B U C K S 2 0 2 2
ENVIRONMENTAL
& SOCIAL IMPACT
report

our our our our


MMXXII
PA RT N E R S COFFEE COMMUNITIES PLANET

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