Starbucks

No leading practices were identified for the company in the governance and strategy measurement area.

Scope 1 and 2 greenhouse gas emissions
Starbucks has set a reduction target for 2030, pledging to cut its carbon footprint by half. Its target has been approved by the Science Based Targets Initiative. The company also discloses information on its activities to reach this target and reports on progress. As of 2021, the company had achieved an 11% reduction.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
Starbucks reports on the development of its sustainable development strategy. It conducted an environmental baseline study in 2018, which led to a multi-decade plan to transform its business into a resource-positive one. However, while the company has conducted materiality assessments in the past, these are outdated, and no similar process to identify and prioritise its most relevant issues was found. The company can improve its performance by being more transparent about how it chooses the topics it focuses on.

Governance and accountability for sustainable development
The company reports having an independent board that provides oversight of its sustainability management. In terms of remuneration tied to its sustainable development strategy, the company discloses that executive members of the company have non-financial performance goals based on environmental, social and governance metrics. Furthermore, the company has an incentive bonus based on performance on the same topics. The company can improve by adding nutritional metrics to its performance evaluations and by making information easily available.

Stakeholder engagement
The company does not disclose stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.

Scope 3 greenhouse gas emissions
Unlike its scope 1 and 2 GHG emission targets, the company’s GHG reduction target for scope 3 has not yet been approved by the Science Based Targets Initiative. The company is encouraged to continue working towards its scope 3 target validation and continuing to report on progress.

Protection of terrestrial natural ecosystems
The company discloses in its Environmental Baseline Report that beef, soya, palm oil, cocoa and coffee are its main food commodities. It also explains how these commodities affect its environmental risks. The company has set various sourcing targets for its commodities and reports having achieved 98% and 100% of ethically sourced coffee and cocoa beans, respectively, through its C.A.F.E programme. The company can strengthen its efforts by being more transparent about its targets and progress regarding palm oil, beef and soy.

Food loss and waste
While the company is addressing food loss and waste in its own operations through a food waste reduction programme, it has an opportunity to disclose a commitment by setting targets to reduce food loss and waste across its own operations and supply chain and reporting progress against these targets.

Plastic use and packaging waste
While the company discloses that it is reducing its plastic use and transitioning to sustainable forms of packaging, it has an opportunity to strengthen its commitment by setting targets to reduce plastic use and transition to more sustainable forms of packaging and reporting progress against these targets.

Animal welfare
While the company has a commitment on animal welfare that addresses animal welfare issues in its supply chain, this does not apply to all key species, geographies or products that are relevant to the company.

Availability of healthy foods
While the company discloses that it introduces reformulated products, it has an opportunity to disclose quantitative evidence of its reformulation activities to reduce the level of salt and sugar in its products. The company discloses targets for both sodium and added sugar. However, its sodium target dates from 2015, and no reports on progress or quantitative data were found for any of the targets. Furthermore, its targets do not cover all of its operations.

Accessibility and affordability of healthy foods
The company does not disclose a commitment and activities to improve the accessibility and affordability of healthy foods for vulnerable groups.

Clear and transparent labelling
While the company discloses a commitment of compliance with national regulations regarding labelling and commits to making nutritional information available for all consumers, it has an opportunity to make nutritional information more visible to consumers through the adoption of front-of-pack labels and/or any other consumer-facing nutrition label.

Food safety
While Starbucks is part of the Steering Committee of the Global Food Safety Initiative (GFSI) and has disclosed some information on this matter in its Standards for Food Suppliers, it can commit to food safety in its operations by disclosing more relevant metrics and by achieving 100% GFSI-recognised certification or equivalent throughout its food production and distribution chain.

Child labour
In its Global Human Rights Statement the company states that it ‘expects its suppliers to eliminate child labour’ in its operations. However, this statement does not translate to a commitment by the company to prohibit the use of child labour.

Forced labour
The company commits to prohibiting forced labour in its operations and requires its suppliers to adhere to the same standard. It also prohibits suppliers from retaining workers’ personal documents and restricting workers’ freedom of movement. However, it has an opportunity to disclose a commitment to respect workers’ rights to freedom of association and collective bargaining as well as specify that it does not interfere with workers seeking to exercise these rights.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Farmer and fisher productivity and resilience
The company discloses qualitative information and scoping details of its activities on this matter. Its efforts include social development investments, farmer support centres and loan programmes as well as ethical sourcing of its raw materials. The company can improve its performance by also systematically measuring and disclosing the outcomes and impact of all its support activities, as part of a holistic strategic approach.

Starbucks discloses commitments towards human rights and the ILO core labour rights, covering its own operations and its supply chain. It also has a grievance mechanism that is accessible to both internal and external individuals. However, the company does not disclose evidence concerning a human rights due diligence process or how it engages with affected and potentially affected stakeholders.

Starbucks commits to providing a safe and healthy environment for its workers, and some evidence of this was found for a portion of its supply chain. The company also discloses metrics regarding workforce diversity, and gender equality and women’s empowerment, with a commitment to the latter. However, the company does not publicly show a commitment to living wages, decent working hours or collective bargaining.

Starbucks discloses both a commitment to and statement on data protection. It also has commitment regarding a tax strategy and an anti-corruption and anti-bribery policy, even though insufficient disclosure concerning these topics was found. Furthermore, the company does not disclose commitments regarding lobbying and allows political contributions to be made.