STARBUCKS GLOBAL RESPONSIBILITY REPORT

Each Starbucks is part of the fabric of the neighborhood it serves. Although we are a global company with stores across the globe, each interaction is local. Starbucks is a gathering place, a place to connect, a barista offering a cup of coffee with an outstretched hand. Since our first store in 1971, we have felt a responsibility to make a positive impact one person, one cup and one neighborhood at a time. As we have grown to now more than 1 ,!!! stores in over "! countries, we recogni#e that commitment to corporate citi#enship is also a business imperative. $e can use our scale for good, and cataly#e change across entire industries so that Starbucks and everyone we touch can endure and thrive. %n a global level, we are trying to be innovative in how we think about communities. $e go beyond the impact of a single company, to energi#e and activate our employees & who we call partners & along with our customers, suppliers and nonprofit partners. %ur annual 'lobal (onth of Service is a great e)ample, with more than *+!,!!! hours of service and *,1!! pro,ects completed in April *!1*, and with plans to e)pand in new directions in *!1+. $e are seeing the impacts of climate change on our planet and are working to minimi#e our own environmental footprint. $e are also helping our farmers run their businesses in an environmentally mindful way, making ad,ustments to ensure the viability of their businesses despite shifting growing conditions. -n *!1*, we demonstrated the power that happens when our partners and a community come together. $e opened our third community store in .ouston, /e)as, and helped a city take hold of its own destiny. -n the words of one neighbor, 01ou have changed our neighborhood forever. -t2s because people see this going on and now they will be more likely to take action themselves.3 $e know global change ultimately resides in the power of each individual. 4nfortunately, many people have disengaged from their communities. Although they may desire change, and they may want to make a difference, they are often unsure of how and where to start. $e are working to engage and activate these individuals with our 1outh 5eadership 'rants program. %ur effort now reaches more than 6!,!!! young people each year, creating innovative and positive solutions to local needs while empowering young people. At our 7armer Support 8enters, we work one9on9one with farmers to help them manage their businesses more effectively, improve the :uality and productivity of their crops, and provide social services to their workers. ;y making these investments in human capital, we create ripples of change in thousands of farming communities. %ur annual 'lobal <esponsibility report is a moment to reflect on the impact we2ve made over the past year. ;ut
1

more than reporting on past progress, it2s an opportunity to be more intentional and focused about what we can do in the future. $hile there are challenges to operating such a comple), e)panding global business as ours, we will continue to balance local relevance with our global reach. 1ou have our commitment that we will continue to push ourselves in new ways.

Ethical Sourcing

$e have taken a holistic approach to ethically sourcing our products & from the coffee we serve our customers to the green aprons worn by our baristas. $e strive to cultivate lasting relationships with the people who grow our products and create our manufactured goods as we work together to produce high9:uality, ethically sourced products. %ur approach includes responsible purchasing practices, farmer support efforts, and social responsibility standards for suppliers, and environmental programs. $e know that our supply chain is vast, and we have an opportunity to use its scale to make positive changes industry9wide.
'%A5 Ensure 1!!> of our coffee is ethically sourced by *!16 =<%'<ESS 9+> of our coffee was ethically sourced in *!1*, including 9!> through 8.A.7.E. =ractices. ON TRACK /otal coffee purchases ?in millions of lbs@ /otal ethically sourced coffee purchases ?in millions of lbs@ A* +"7 "> 6A6 6!9 9+> 1!!>

$e define ethically sourced as coffee that is third9party verified or certified, either through 8.A.7.E. =ractices, 7air9trade or another e)ternally audited system.

*!11 B

*!1*

*!16

-ncludes green coffee purchases for all Starbucks brands. B*!11 results include 8.A.7.E. =ractices only.

Coffee
$e are committed to buying and serving high9:uality coffee that is responsibly grown and ethically traded. $e honor this commitment through our responsible coffee purchasing practices, farmer support centers, loan programs and forest conservation efforts. $hen we buy coffee this way, we believe that it helps foster a better future for farmers and helps mitigate the impacts of climate change for the planet /he cornerstone of our approach is 8offee and 7armer E:uity ?8.A.7.E.@ =ractices, our comprehensive coffee9buying program that ensures coffee :uality while promoting social, economic and environmental standards. 8.A.7.E. =ractices, which we developed in collaboration with 8onservation -nternational ?8-@ a decade ago, has created significant social and economic impacts for more than one million workers, and environmental improvements on the thousands of participating farms. 7arms and mills are evaluated using a comprehensive scorecard of more than *!! indicators by third9 party verification organi#ations, which are overseen by S8S 'lobal Services. -n *!1*, 9!> of our coffee was 8.A.7.E. =ractices verified. =urchasing third9party certified or verified coffees not only meets our customers2 e)pectations, but can also help protect the environment and the livelihood of farmers in coffee9growing regions. $e have offered 7air9trade coffee since *!!!, and remain one of the largest purchasers of 7air9trade certified coffee in the world. -n *!1*, AA.A million pounds ? .1 >@ of our coffee purchases were 7air9trade certified. $e also purchased .7 million pounds ?1.">@ of certified organic coffee in *!1*. -n *!1*, 9+ > of our coffee was ethically sourced through 8.A.7.E. =ractices, 7air9trade andCor other e)ternally verified or certified programs, with some coffees receiving multiple verifications or certifications. -t is our goal that by *!16, 1!! > of our coffee will be sourced this way. Another important component of our approach is a green coffee pricing model that aims to pay the prices premium :uality commands, while fostering price stability and mutually beneficial relationships with suppliers. Starbucks sourced 6A6 million pounds of premium :uality green ?unroasted@ coffee from *9 countries in *!1*, and paid an average price of D*.6" per pound. -n *!1*, 9 > of our contracts included an economic transparency clause.

Tea
-n a similar way we approach responsible coffee sourcing, we are committed to a long9term strategy of ethical tea sourcing, which includes helping support farmers and their communities throughout our tea supply chain. $e have been working with the Ethical /ea =artnership ?E/=@ since *!!6 to collaborate with others in the tea industry, and to make sure that our tea is produced in a socially responsible way. -n *!1*, we strategically sourced from estates that are a part of the E/= program and sub,ect to third9 party independent audit on the social and environmental criteria outlined in the E/= 'lobal Standard. %ur work with E/= is complemented by our support of the 8.A- ?8ommunity .ealth and Advancement -nitiative@ pro,ect with (ercy 8orps. -n *!1* we celebrated the 1!9year anniversary of 8.A-. Since *!!+ 8.A- has directly impacted 76,!!! people and their families in more than *!! farming communities in -ndia and 'uatemala.

Cocoa
%ur approach to buying cocoa is also based on a commitment to ensuring a long9term supply of high9 :uality, ethically sourced cocoa while contributing positively to the environment and to cocoa9farming communities. %ur 8ocoa =ractices program seeks to verify the supply chain for the cocoa beans used in our beverages, with inspections performed by independent verifiers overseen by S8S 'lobal Services.

Store Merchandise
$e2re also committed to social responsibility standards for the merchandise, furniture and other items found in our stores. $e2ve set strong standards for our suppliers and offer them assistance when corrections need to be made to their business practices. Adherence to those standards informs our sourcing decisions and ensures we are working with suppliers who share our commitment to ethical sourcing. %ur buyers work directly with suppliers, negotiating contracts for the products we need in our operations or sell to our customers. -n *!1* we assessed 1* factories and found that +" of them failed our #ero9tolerance standards. Even though our approach is to work with suppliers to correct the issues, there are times when we halt business due to the nature of the issues and until ade:uate resolution takes place. $hile we were able to implement improvement plans with almost half of these factories, we discontinued working with 16 factories as suppliers for standards issues. Since starting the program in *!!", we have engaged in more than 6!! factory assessments and continue to work with more than 7! factories on programs to improve standards.

$e are continuing to collaborate with others in our industry to address ethical sourcing best practices in our shared supply bases. Starbucks is a member of the 'lobal Social 8ompliance =rogram, a business9 driven effort to promote the continuous improvement of environmental and working conditions of global supply chains.

Far er S!""ort
$e know our success as a company is linked to the success of the thousands of farmers who grow our coffee. Starting in *!!A with our first farmer support center in 8osta <ica, Starbucks agronomists collaborate directly with coffee farmers to encourage responsible growing practices and improve the :uality and si#e of their harvests. $e have continued to e)pand the program, and share our coffee knowledge with farming communities through our satellite office in 'uatemala 8ity and additional farmer support centers in Eigali, <wanda, and (eyer, /an#ania. -n *!1* we opened new centers in (ani#ales, 8olombia, and 1unnan =rovince, 8hina. 4ltimately, these efforts can help farmers earn better prices and become more resilient, long9term producers.

'%A5

=<%'<ESS *!16

-nvest in farmers and their communities by increasing farmer loans to D*! million by *!16

$e increased our loan commitment to D16.9 million with a D1.+ million investment to the 7airtrade Access 7und. ON TRACK

*!1* D16.9 ( #

D*! ( *!1 1 D1A.7 (

8ommitment is defined as being made either by public declaration of intent or signed contract.

Far er Loans
=roviding access to credit at reasonable terms is a critical aspect of our farmer support model. %ur goal is to invest in farmers and their communities by increasing our farmer loans to D*! million by *!16. -n *!1*, we increased our total commitment to D16.9 million, including an additional D1.+ million placed in the 7air /rade Access 7und set up by -nco fin -nvestment (anagement, 'raeme 7oundation and 7air9trade -nternational. /he fund provides financial and technical assistance to address the needs of smallholder farmers by investing in 7air9trade producer organi#ations and cooperatives.
"

/he fund represents a uni:ue collaboration between a social investment firm and two global nonprofits that focus on helping rural communities in developing countries. /he fund launched in 5atin America in *!1* with farmers in multiple coffee9growing countries. ;y investing in programs that provide access to credit, we2re helping farmers manage risk and strengthen their businesses. 5ooking forward, we are e)ploring innovative relationships to help us better leverage the loans in concert with our technical support, social development investments and coffee purchases. /he fund will also e)pand into the Africa and Asia9=acific farming regions.

Red!cin$ O!r En%iron enta& I "act

%ur comprehensive approach to reducing our environmental impact means looking at all aspects of our business, how they intersect, and how we can integrate new solutions to create meaningful and sustained change. ;eyond the proactive efforts within our control, the realities of climate change are a growing challenge, and we felt the impact during *!1* & the hottest year on record. 7rom coffee9growing conditions in 8osta <ica to the increased electricity needed to power our stores, we need to consider the global impact of our actions. ;y building more energy9efficient stores and facilities, conserving the energy and water we use and purchasing renewable energy credits, we are pushing ourselves to reduce the environmental footprint of our business operations. $e are also working in critical areas of our supply chain to mitigate our impacts and adapt to a changing climate. /his is to ensure the long9term sustainability of our business and the health of the communities we touch. ;ut it2s about more than ,ust our operations and supply chain. $e are also working to shrink our environmental footprint and meet the e)pectations of our customers by reducing the waste associated with our cups, increasing recycling and incorporating green design into our stores. $e also know that the magnitude and comple)ity of addressing climate change re:uires us to think beyond the actions of our own company. As a result we are committed to continue using the power of our voice to champion progressive climate policies in partnership with other like9minded business and organi#ations.

Greener Stores
$e know that more than !> of our direct and indirect greenhouse gas emissions come from the energy used to power our stores, offices and roasting plants. $e are intently focused on improving the environmental performance of our facilities and more than 1 ,!!! stores with green store design and energy and water conservation strategies.

'%A5 ;uild all new, company9owned stores to achieve F

=<%'<ESS 76 > "9>

5EEG

certification

$e have achieved 5EEG certification for 11" stores in 1* countries and we are addressing specific geographic challenges in our high growth (arkets. IN PROGRESS

*!11

*!1*

=ercentage of new company9owned stores built to achieve 5EEGF certification.

LEE' Certification
Starbucks has been a leader for more than a decade in the development and implementation of a scalable green building program for retail companies like ours. $e ,oined the 4.S. 'reen ;uilding 8ouncil ?4S';8@ in *!!1 and collaborated with them to help develop the 5EEGF ?5eadership in Energy and Environmental Gesign@ for <etail rating system, an effort that incorporated retail business strategies into the 5EEG for Hew 8onstruction and 8ommercial -nteriors rating systems. $e opened our first 5EEG9certified store in *!!6. -n *!!9 Starbucks became one of the first retailers to ,oin 4S';82s 5EEG Iolume 8ertification pilot program. As the first retail company to take this building approach globally, we2ve e)perienced success in some geographic Areas and challenges in others. -n *!1*, we built "9 percent of our new global company9owned stores to achieve 5EEG, but had difficulty applying 5EEG in regions where the program is not as established. 'oing forward, we will e)plore additional strategies to bring 1!!> of our stores to a sustainable building standard.

'%A5 <educe energy consumption by *6> in our company9 owned stores by *!16

=<%'<ESS
$hile e)treme weather in *!1* contributed to ,ust over a 1> increase in electricity consumption from the year before, we have plans in place to help us achieve our *6> reduction goal by *!16.
ON TRACK
;ASE5-HE 7.6> Gecrease ".6> Gecrease *6> Gecrease

*!!
". E$.

*!11
".*9 E$.

*!1*
".+" E$.

*!16
6.1! E$.

Average electricity use per s:uare footCstoreCmonth 4.S. and 8anada company9 owned stores. =ercentage change to the *!! baseline.

<educe water consumption by *6> in our company9owned stores by *!16

$ater consumption decreased slightly in *!1*, bringing us to a total decrease of 17.7> since *!! .

;ASE5-HE 17."> Gecrease 17.7> Gecrease *6> Gecrease

ON TRACK

*!!
*A.+6 gal

*!11
*!.11 gal

*!1*
*!.! gal

*!16
1 .*7 gal

Average water use per s:uare footCstoreCmonth 4.S. and 8anada company9owned stores. =ercentage change to the *!! baseline.

Conser%in$ Ener$( and )ater

-n *!! , we set a goal to reduce electricity use by *6> in company9owned stores by *!16. Since then, we2ve implemented a number of energy initiatives and have seen electricity use decrease by a total of ".6>. Gespite these efforts, electricity use in *!1* increased 1.1> compared to *!11, mainly due to record9breaking temperatures in the 4.S. that caused our stores2 air conditioners to run more than usual. 5ast year was one focused on testing and validating new, effective energy conservation solutions for our stores. -n the ne)t two years we2ll be bringing those proven strategies to scale to meet our goals. %ne e)ampleJ installing energy management systems and hybrid water heaters to heat our water and cool our stores. $ater is a key ingredient in our beverages and a necessity for operating our stores. $e2ve identified a number of opportunities to use this precious resource more wisely and have spent the last few years testing and validating these solutions. -n *!! we set a goal to reduce water consumption by *6> in company9owned stores by *!16. %ver the past four years, we have cut water consumption by 17.7> through several measures, including the use of efficient fi)tures, actively seeking out and repairing stores with leaks and the elimination of a continuously running faucet that rinsed our utensils.

'%A5

=<%'<ESS

=urchase renewable energy e:uivalent to 1!!> of the electricity used in our global company9owned stores by *!16

$e continue to purchase the e:uivalent of over 6!> of the electricity used in our global company9owned stores.
ON TRACK

66

(illion E$.

6!.A> 61.!> 1!!>

*!11

6 " (illion E$.

*!1* *!16

In%estin$ in Rene*a+&e Ener$(

-n addition to reducing our energy use, we2re increasingly focused on advancing renewable energy sources through our purchasing practices. $e2re hoping to help transform the energy landscape by supporting the development of the renewable power market. /he <enewable Energy 8redits ?<E8s@ we purchase encourage the development of new clean9energy sources by providing wind9farm owners with additional revenue. -n turn, that helps sell electricity at prices competitive with power plants that use fossil fuels. -n *!11 we began working toward a goal to purchase <E8s e:uivalent to 1!!> of the electricity used in our company9 owned stores globally by *!16. 7or two years running, we have purchased renewable energy e:uivalent to more than 6!> of the electricity used in our company9owned stores worldwide.

Inno%atin$ in Rec(c&in$ and Food Pac,a$in$

=roviding recycling in our stores and ensuring the recyclability of our cups is a foremost priority for Starbucks and our customers. $e2ve offered a cup with 1!> post9consumer recycled paper fiber since *!!". And we keep working to decrease the materials used in our packaging, find new ways to encourage reusable2s and implement recycling solutions for our cups. %ur approach is to not only provide customers with cup choices for their beverages, but to also collaborate with others to create locally relevant improvements in the recycling infrastructures of communities where we operate. $e are doing that by taking a close look at the materials we use and opportunities for material reuse in the future. -n *!1* we introduced the Earth SleeveK to Starbucks locations across the 4nited States and 8anada. /his new hot9cup sleeve re:uires fewer raw materials to make, while increasing the amount of post9 consumer content. /hese ad,ustments correlate to a savings of nearly 1!!,!!! trees a year and we are working to roll out Earth Sleeve globally.

Gevelop comprehensive recycling solutions for our paper and plastic cups by *!1*

$hile we proved the recyclability of our cups in 4.S., 8anada, 4E and 'ermany, and continue to e)pand recycling in those countries, we are still working toward materials andCor infrastructure solutions for our remaining company9owned markets.
IN PROGRESS

Gesign 8ollection

-nfrastructure

Findin$ C!" Rec(c&in$ So&!tions

;ecause recycling infrastructure varies widely in countries around the world & even from one city to another & a one9 si#e9fits9all approach does not work for a global business with stores in more than "! countries.
$e have proven that our used cups can be accepted in a variety of recycling systems, and we are bringing this to scale in the 4nited States, 8anada, the 4nited Eingdom and 'ermany. $e are developing material and infrastructure solutions in additional markets, working toward our goal to provide all customers access to cup recycling by *!16.

;y working with nongovernmental organi#ations, policy makers, competitors and others, we can tackle common challenges. As a member of the Pa"er Reco%er( A&&iance and the =lastics <ecovery Alliance, and others, we are helping advance a
number of meaningful food packaging initiatives that will have a significant impact on the entire industry.

-mplement front9 of9store recycling in our company9 owned stores by *!16

-n *!1*, we increased the availability of front9of9store recycling by an additional A6+ stores in the 4.S. and 8anada.
ON TRACK

1!!>
*!16

=ercent of store locations with front9of9store recycling

1 >
*!11

*A>
*!

Rec(c&in$ in O!r Stores

Although most of our customers take their beverages to go, providing front9of9store recycling is an important part of our effort to develop comprehensive recycling solutions.

' % A5 Serve 6 percent of beverages made in our stores in personal tumblers by *!16

=<% '< ESS -n *!1*, customers used personal tumblers more than +6 million times, and we are implementing new solutions in *!1+ to bring us closer to this goal. NEE'S IMRO-EMENT *!11 =ercent of beverages served in personal tumblers 1.6>B +A.* (illion ;ever ages 1.6> +6. (illion ;everages 6>

*!1 *

*!16

4.S., 8anada, 4E, -reland and 'ermany company9owned stores. B=revious results restated using total beverages vs. total transactions.

-n *!! we set a goal to implement front9of9store recycling in all company9owned locations by *!16. -n *!1* *A> of our company9owned stores in the 4nited States and 8anada offered front9of9store recycling. %f these locations, 9A> were able to recycle or compost the hot cup. Although we still have work to do, we are pleased with our progress and will build on this momentum while e)panding to international markets to reach our goal. -n *!1* we confirmed that markets such as 'ermany and the 4nited Eingdom have effective recycling solutions in place, even if they do not include front9of9store recycling canisters. 7or e)ample, in the 4nited Eingdom store waste is separated into three streams in the back of our stores, and then separated later at the waste facility. %ur 4E stores are currently diverting appro)imately 6!> of their waste from landfills with this method, and we are testing ways to increase this percentage. ;y leveraging the solutions from our different markets around the world, we can help build capabilities in markets newer to recycling.

;ack9of9store recycling is also a priority, as most of our in9store waste is generated behind the counter. -n *!1* 7 > of the +,17 stores in the 4nited States and 8anada where Starbucks is responsible for providing waste removal services recycled cardboard bo)es and other items. Among our remaining 4.S. and 8anada retail locations, the ma,ority were limited by operational impasses, such as a lack of store space for recycling carts or the unavailability of commercial recycling services. $e are working hard to resolve these barriers.

Red!cin$ )aste *ith Re!sa+&e C!"s

<eusable cups are an important component of our overall waste reduction strategy. Since 19 6 we2ve rewarded our customers with a discount when they bring in personal tumblers, and we have a goal to serve 6> of the beverages made in our stores in tumblers and mugs brought in by our customers. -n *!1* customers brought their own tumblers into our stores +6. million times, saving more than 1." million pounds of paper from landfills. Although customers brought in their personal mugs 1." million more times in *!1* over the previous year, the percentage of customers choosing reusable mugs remained flat from last year. -n previous years, we calculated the percentage of customer tumbler use over total transactions. -n collecting data from our stores around the world and analy#ing customer behavior, we determined that a better measurement of this goal is to calculate the percentage of times a personal cupCtumbler is used over our total beverage sales, which is a more precise measure of the total beverages we sell. $e2ll continue to find innovative ways to engage customers to work with us to reduce wasteL including launching a D1 reusable cup in the 4.S. and 8anada in *!1+ with plans to e)pand to other markets. $e challenge ourselves, our partners in our support centers and our stores, to use reusable cups and remain committed to e)ploring new ways to reduce our cup waste.

' %A5 -mprove farmers2 access to carbon markets, helping them generate additional income while protecting the environment

=< % '< E S S
$e focused on providing agricultural best practices which will help farmers better respond andCor adapt to regional climate changes, and have e)panded our program to ;ra#il.
ON TRACK
(inas 'erais, ;ra#il

Sumatra, -ndonesia

8hiapas, (e)ico

Forest Conser%ation
$e are concerned about the impacts of climate change, especially in the sensitive bioregions where coffee is grown. /o better understand the risk to farming communities and our supply chain, we work with 8onservation -nternational ?8-@ and farmers in three uni:ue coffee9producing communities. /ogether we are working to identify and test effective strategies for improving the sustainability of coffee production processes, the conservation and restoration of natural habitat, and opportunities to facilitate farmer access to forest carbon markets or other forms of assistance. -n 8hiapas, (e)ico, we engaged more than *!! farmers in *+ communities and helped them protect 1! species of plants in nearly 6!!,!!! hectares in three protected area reserves. 8apturing the carbon value of this investment in tree plantings has helped farmers receive additional income in the form of payments for carbon credits & creating the e:uivalent of ** new ,obs and representing an average of nearly *7> of a participating farmer2s income. -n Sumatra, -ndonesia, we are continually e)ploring the feasibility of a forest carbon market program with local and regional government organi#ations to lay the groundwork for the future. $e are investing in the development of the Aceh /engah 8offee 8limate 8hange Adaption plan, building the first of si) nurseries in *!1*, organi#ing climate mitigation and adaption trainings for farmers, and establishing plans to plant +!!,!!! trees by *!1+. $e e)panded the partnership to the (inas 'eris region in ;ra#il2s Atlantic 7orest for the first time in *!1*, and distributed *!!,!!! native tree seedlings to farmers. $e are helping farmers gain access to e)isting government programs that provide cash incentives for forest preservation and restoration. $e are also conducting research to better understand opportunities for improved productivity, increased income and resilience to climate change. /esting these approaches in different regions helps us refine our strategies so they can be applied to other coffee9 growing communities and replicated by other government and industry partners.

Co

!nit(

%ur communities are not ,ust where we have stores. /hey are every place our business touches, from the backyards of our customers, to the farms where our coffee is grown. $e have a responsibility to make our communities stronger & using the scale of our business for positive change.

'%A5 (obili#e our partners ?employees@ and customers to contribute 1 million hours of community service per year by

=<%'<ESS $e increased our service hours in *!1*, contributing nearly A!> more hours than the year before. ON TRACK

1 (illion .ours AA*, +6+ .ou rs "1+, *1A .ou rs *!16 *!11 *!1*

*!16

-ncludes all global markets regardless of ownership.

Ser%in$ o!r Co

!nities

How, more than ever, communities are looking to the private sector to share resources and create meaningful change. ;y mobili#ing partners ?employees@ and the communities we serve, we2re tapping into a passionate network of people eager to be a catalyst for change in their local neighborhoods. -n *!1*, we brought together our customers and partners, civic leaders and nonprofit organi#ations to contribute more than "1+,!!! hours of service around the world. Guring April2s 'lobal (onth of Service, volunteers made a significant impact in more than ++ countries around the world & with more than *,1!! community service pro,ects completed in ,ust +! days.

'%A5 Engage a total of 6!,!!! young people to innovate and take action in their communities by *!16

=<%'<ESS $e continued to e)ceed this goal by engaging more than 6A,!!! youth in community activities in *!1*. AC.IE-E' 6A, A 6!,!6! 6!,!!!

*!11

*!1*

*!16

As we engage in communities in the present, we are also planning for the future. $e2re helping develop the ne)t generation of e)traordinary leaders through our 1outh Action 'rants. /hese investments help young people learn the skills re:uired for our changing global economy, such as business savvy, social conscience and collaborative communication. $hen we created the 1outh Action program in *!! , we set an ambitious goal of engaging 6!,!!! young people by *!16. 7or each of the past three years, we have e)ceeded this goal. /hese youth leaders in turn mobili#ed more than 1. million hours of community service in *!1* and created ripples of change in communities around the world. As we look to the future with our 1outh 5eadership grants, we hope to help the ne)t generation of leaders to build successful and socially responsible businesses and nonprofit organi#ations.

Co

!nit( Stores

$e are e)ploring new ways we can be more directly involved with the communities we serve. %ur 8ommunity Stores are helping create engaged citi#ens through an innovative business model and partnerships. 8ommunity Stores serve as the hub of our community service and training programs that promote leadership and ,ob and life9skill development. Guring fiscal *!1* we opened our first two 8ommunity Stores in .arlem, Hew 1ork, and the 8renshaw community of 5os Angeles. $e opened a third store in .ouston, /e)as, in early fiscal *!1+. -n the first 1* months of the 8ommunity Store program, this effort generated D*A6,!!! for holistic community9 revitali#ation programs focused on education, safety, housing, health and employment. As we celebrate the first year of 8ommunity Stores, we are pleased with the personal and financial impacts they have made in these neighborhoods. /hese stores have shed light on the role our stores can play in creating community connection.

Far in$ Co

!nities

%ur commitment to communities e)tends beyond our stores to include the regions that supply our coffee, tea and cocoa. Starbucks invests in programs designed to strengthen local economic and social development. $e are working collaboratively with nongovernmental organi#ations that have e)perience and e)pertise in working with farming communities. -n addition to social investments, we also support communities through farmer loans and ethical sourcing programs with 8onservation -nternational and 7air9trade, among others. -n -ndonesia2s Aceh province, Starbucks has teamed with Save the 8hildren to improve children2s health and education in coffee9growing communities through ;5EHG ?;etter 5iving, Education, Hutrition, and Gevelopment@.

/he ;5EHG pro,ect began in *!!9. Since that time, it has made a real difference in the lives of children and their families from more than A! communities in the ;ender (ariah district. =articipating communities have doubled their vaccination rates, drastically improved health worker capacity, and :uadrupled the number of community health posts. (oving forward, our plan is to e)pand ;5EHG to other ;ender (ariah communities. -n tea9growing regions of -ndia and botanical9farming communities in 'uatemala, Starbucks has helped support health and economic development programs through /ao2s 8ommunity .ealth and Advancement -nitiative ?8.A-@ pro,ect, a ,oint partnership with (ercy 8orps. Since *!!+ Starbucks and /ao suppliers have contributed D1.1 million for 8.A-. $e are now involved in a three9year pro,ect to impact more than 11,!!! people with water and sanitation improvements, youth engagement, education and income generation. Since fiscal *!!6, Starbucks has helped support the 'uatemala Education -nitiative, an effort with Save the 8hildren to bring education programs to remote coffee9producing villages in that country. -n *!11 Starbucks launched a three9year pro,ect with a D1 million contribution to Save the 8hildren to improve education, health and nutrition for coffee9farming families in 'uatemala2s .uehuetenango region. Starbucks also supports water, sanitation and hygiene education programs in water9stressed countries through the Starbucks 7oundation2s Ethos $ater 7und. 7or each bottle of EthosF water purchased, a contribution of D.!64S ?D.1!8H in 8anada@ is made to the fund. Since *!!6 D7.+ million has been granted, benefitting appro)imately A+!,!!! people around the world. -n *!1* two new grants were made in East Africa, an important coffee9growing region for Starbucks.

Gi%in$
/he Starbucks 7oundation is a separate 6!1?c@ ?+@ charitable organi#ation that receives funding from Starbucks 8orporation and private donations. /he 7oundation gave D1+. million in *!1*, making over A!! grants to nonprofit organi#ations. 'rants included D*.+ million for Starbucks 1outh 5eadership grants and D* million in origin social development grants to (ercy 8orps, Save the 8hildren, Ethos $ater 7und, =8- ?=ro,ect 8oncern -nternational@ and =A/.. -n *!1* Starbucks 8orporation gave D".6 million in cash, including D1.76 million to the Starbucks 7oundation. 8orporate giving included funding for community9building programs & including the 'lobal 7und through our partnership with ?<EG@ K and other efforts & and DA! million in in9kind contributions.

'i%ersit( and Inc&!sion

As our company has grown to reach our neighborhoods and communities around the world, diversity and inclusion have become increasingly important to success. $e understand that meeting the needs of the global community re:uires creativity and innovation. $e intend to leverage the diversity of thought that our partners, communities and suppliers bring to us. At Starbucks we strive to create a culture that values and respects diversity and inclusion. $e e)pect to be the leader in diversity and inclusion from our partners in the field to our senior leadership teams. /o ensure that our goal is a reality, starting in *!1* we have integrated diversity and inclusion into the core of our leadership competencies. $e e)pect that all leaders within Starbucks practice behaviors that demonstrate inclusion. /he new leadership competency reads that, as leaders, we will 0reach out to leverage diverse points of view, talents and capabilities. $ork and think across teams, functions and businessesL across markets, channels and organi#ationsL across cultures and communitiesL across physical and digital spaces.3 /o strengthen these efforts, we also collaborate with diverse professional organi#ations, nonprofit organi#ations, businesses, civic leaders and individuals who share our values.

A+o!t the /01/ Star+!c,s Res"onsi+i&it( Re"ort Sco"e

/he report for fiscal *!1* focuses on our performance against the goals we set in *!! in three areasJ ethical sourcing, environmental stewardship and community involvement. $e2ve also included helpful links to information and resources publicly available on Starbucks.com regarding our financial, corporate governance, workplace and diversity policies and performance. -n developing this report, we2ve covered topics and issues that are important to Starbucks and our stakeholders, based on feedback from sources like (yStarbucks-dea, customer feedback via our 8ustomer Service center and industry analysis conducted by Sustainability and Edelman, along with direct conversations with the many organi#ations we work with. $e share information about those topics in the body of the report or direct readers to other resources. %ur report has also been guided by the 'lobal <eporting -nitiative '+ 'uidelines, a set of internationally recogni#ed sustainability reporting standards. /hese key criteria are outlined in our '<- -nde). A high9level summary of our progress toward our commitments and public goals are contained in our 'lobal <esponsibility Scorecard *!1*.

Bo!ndaries
%ur 'lobal <esponsibility <eport for fiscal year *!1* focuses on the work we are doing in ethical sourcing, community involvement and environmental stewardship. /hese areas are where we can have the greatest impact. $e also believe they are important to Starbucks, our customers, our partners ?employees@, non9governmental organi#ations and investors. $e also know wellness and workplace policies a re of considerable interest to our stakeholders. 7urthermore, we have always embraced diversity as an essential component in the way we do business. $e are currently innovating our diversity strategy to support our multi9channel, multi9brand global e)pansion. $hile our commitments are global, our report content is focused largely on Starbucks 4.S. and 8anada company9 owned and operated retail stores and global supply chain operations. 8ounting by stores, these operations represent most of Starbucks social, environmental and economic impacts. A notable e)ception to this is information on total coffee purchases. .ere we report for all Starbucks brands and retail stores, including Starbucks 8offee, Seattle2s ;est 8offee and /orrefa#ione -talia. Starbucks has used the 8redit+"! system for key performance indicators data entry, approval and audit. /his fiscal year we2ve started to collect data from company9owned stores globallyL we2re in the process of validating and improving the processes and information so we can consistently and accurately report against common goals.

Infor ation Inte$rit(

Starbucks management is responsible for the preparation and integrity of the information being reported for fiscal *!1*. /hrough a system of internal controls, including a comprehensive verification process involving internal sub,ect matter e)perts, we believe this information fairly represents our global responsibility activities and performance results for the fiscal year *!1*. E)ternal verification is provided by (oss Adams 55=. <ead the (oss Adams -ndependent Assurance <eport. All info graphics related to our goal performance are visual representations of progress, and not to e)act scale.
Het Stores %pened ?8losed@ Guring /he 7iscal 1ear Ended ?1@ Store %pen as of

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For*ard2Loo,in$ State ents

%ur reporting on global responsibility for fiscal *!1* includes forward9looking statements about the company2s business and its future business plans, initiatives, goals and ob,ectives. /hese forward9looking statements are based on currently available operating, financial and competitive information and are sub,ect to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, coffee, dairy and other raw material prices and availabilityL successful e)ecution of the company2s blueprint for growth and other strategiesL cost reduction and other initiativesL fluctuations in 4.S. and international economies and currenciesL the impact of competitionL the effect of legal proceedingsL and other risks detailed in the company2s filings with the Securities and E)change 8ommission, including the 0<isk 7actors3 section of Starbucks Annual <eport on 7orm 1!9E for the fiscal year ended %ctober +, *!1*. /he company assumes no obligation to update any of these forward9looking statements.