Industry News | May 14, 2008

Starbucks Makes Corporate Social Responsibility Report Public

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Starbucks Coffee Company (NASDAQ:SBUX - News) today reaffirmed its commitment to supporting coffee farmers, communities and the environment with the launch of its Fiscal 2007 Corporate Social Responsibility (CSR) Annual Report.

Starbucks seventh CSR report, which is now online at Starbucks.com/csr, openly shares Starbucks progress in several areas important to the growth of the business and to its unwavering commitment to ethical coffee sourcing, environmental responsibility, community involvement and workplace practices.

In his letter to stakeholders in the report, Starbucks chairman, president and CEO Howard Schultz says, “Even during this time of change for our company, one thing that will never change is our long-standing commitment to conducting business in a responsible and ethical manner. Going forward, we will only deepen our approach by continuing to integrate social and environmental responsibility into every aspect of our business.”

The report highlights key strategic CSR initiatives and tracks Starbucks progress in several areas including:

Leading in ethical sourcing

Starbucks continues to be a leader in the ethical sourcing of coffee. Accomplishments include:

* Sustainable coffee: Purchasing 65 percent of its coffee in fiscal 2007 through Coffee and Farmer Equity (C.A.F.E.) Practices, Starbucks program for sustainable coffee, with a goal of purchasing 80 percent of coffee from C.A.F.E. Practices-approved suppliers by fiscal 2013.

* Paying higher prices: Purchasing only high-quality arabica coffee beans and paying higher prices that premium quality commands. Starbucks paid an average price of $1.43 per pound ($3.16 per kilogram) in fiscal 2007.

* Fair Trade Certified coffee: Continuing to be the largest purchaser, roaster and distributor of Fair Trade CertifiedTM coffee in North America and amongst the largest worldwide, purchasing 20 million pounds (9 million kilograms) in fiscal 2007.

* Conservation International (CI) collaboration: Announcing a five-year commitment to CI to address climate change by supporting farmers and communities who are preserving forests in coffee regions.

Being a leader in environmental responsibility

Starbucks outlined a bold global environmental strategy that will help achieve a meaningful reduction in the company’s environmental footprint. Starbucks is working to accomplish the following goals by 2010:

* Renewable energy: Aspiring to have 50 percent of store energy come from certified renewable sources.

* Green building: Incorporating green building standards into all new building construction. * Less waste: Reestablishing ceramic serveware as the global standard for customers who enjoy their beverages in Starbucks stores.

Making each Starbucks store the heart of the local neighborhood

Starbucks works to build lasting, personal relationships with customers and neighbors. The CSR Annual Report includes information and data about our ongoing efforts in the communities in which we do business:

* Starbucks economic footprint in local communities: A study commissioned by Starbucks found that Starbucks stores contribute to local economic growth, create new jobs and add to local tax revenues. For every dollar spent at a Starbucks store, on average, $2.23 is put back into the local economy through employee wages and benefits, taxes, and payments to local vendors that provide some of its goods and services.

* Customer attitudes: Eighty-six percent of customers surveyed responded that they were extremely or very likely to recommend Starbucks to a friend or family.

* Community investments: Starbucks contributions to local communities in the U.S. and around the world, through in-kind and cash donations, including partner volunteerism and company-matched gifts, were valued at $18 million in fiscal 2007.

About the Report

* External verification: The data and statements in the report are independently verified by Moss Adams LLP, the 12th largest accounting and consulting firm in the U.S.

* Stakeholder voices: The report includes candid feedback from 14 experts about Starbucks CSR efforts through a special “Stakeholder Voices” feature. Their unedited comments identify the areas where they think Starbucks is doing well, and where there are opportunities to improve.

* Customer brochure: Customers can pick up a brochure entitled “Of Coffee and Community” summarizing the highlights of the report in Starbucks North American stores.

* Continuing the conversation: Readers of the report are invited to share their ideas for Starbucks CSR at the company’s new online community: www.mystarbucksidea.com.

* Global Reporting Initiative (GRI): A listing of GRI G3 indicators and a description of how Starbucks applied the GRI principles is included in the report.

* United Nations Global Compact: Also included in the report is Starbucks “Communications on Progress” towards the 10 principles of the UN Global Compact, a voluntary UN initiative relating to upholding principles of human rights, labor, the environment and anti-corruption.

* Translations: An excerpt of the report focused on Starbucks commitment to ethical coffee sourcing will be available at Starbucks.com/csr in early June in the following languages: Spanish, Japanese, simplified Chinese, traditional Chinese and Arabic.