CDP 5 Companies and Response Status
Carbon Disclosure Project (CDP5) Greenhouse Gas Emissions Questionnaire -
BACK

Printer Friendly Version
Responding corporation: Starbucks Corporation
Download a draft of this response by clicking here
General Introduction
If you would like to give an introduction to your answers, please enter it here.

 
Section A – 1 Climate Change Risks, Opportunities and Strategy
Question 1(a)(i) – Regulatory risks
For this question, please state the time period and where possible the associated financial implications.

What commercial risks does climate change present to your company including regulatory risks associated with current and/or expected government policy on climate change e.g. emissions limits or energy efficiency standards?
We believe the scientific opinion that climate change could be an enormous threat to the future of our planet and that meaningful action must be taken to reduce GHG emissions. Starbucks has long held that environmental responsibility is essential if we hope to sustain the quality of life on our planet, a belief reflected in our Guiding Principles and our Environmental Mission Statement.

We also anticipate that the regulatory implications of climate change, including existing EU and pending U.S. cap and trade schemes will initially cause an incremental rise in energy costs for our company, above current market-driven increases.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 1(a)(ii) - Physical risks
For this question, please state the time period and where possible the associated financial implications.

What commercial risks does climate change present to your company including physical risks to your business operations from scenarios identified by the Intergovernmental Panel on climate Change or other expert bodies, such as sea level rise, extreme weather events and resource shortages?
We believe the scientific opinion that climate change could be an enormous threat to the future of our planet and that meaningful action must be taken to reduce GHG emissions. Starbucks has long held that environmental responsibility is essential if we hope to sustain the quality of life on our planet, a belief reflected in our Guiding Principles and our Environmental Mission Statement.

Furthermore, we believe that the implications of climate change to our business are real. Starbucks core business is coffee, an agricultural product that is grown in tropical regions around the globe. Climatic conditions influence the yield and quality of annual coffee crops. Severe weather conditions associated with climate change will also potentially impact the livelihoods of coffee-growing communities around the world. In general, we are concerned that the negative impacts of climate change on coffee-growing regions could affect our business significantly in the long term. Therefore, we are working to better understand the risks and implications that climate change may have on our business, as well as identify how we can minimize our contribution to climate change.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 1(a)(iii) - Other risks
For this question, please state the time period and where possible the associated financial implications.

Apart from any regulatory and physical risks you have described in your answers to questions 1(a)(i) and 1(a)(ii) above, what other commercial risks does climate change present to your company including shifts in consumer attitude and demand?
We believe the issue of climate change will continue to exhibit greater prominence in consumer purchasing decisions and choice of patronage. Companies that fail to address their own climate footprint and demonstrate leadership in the arena are likely to experience greater customer dissatisfaction and loss of business as consumer awareness grows.

As the largest specialty coffee company in the world, Starbucks has significant opportunity and responsibility to raise awareness of the impact of climate change on the fragile coffee-growing regions and communities around the world.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 1(b) - Opportunities
For this question, please state the time period and where possible the associated financial implications.

What commercial opportunities does climate change present to your company for both existing and new products and services?

Climate change and its growing prominence in news coverage and discourse gives us the opportunity to engage our 45 million weekly customers regarding their abilities to mitigate greenhouse gas emissions through their daily choices. Although this engagement does not create new products or services for Starbucks, it amplifies our impacts on climate mitigation well beyond our ability to control our own direct and indirect emissions. Subsequently, we hope to help maintain coffee farmers' ability to provide enough high quality Arabica coffee beans to sustain our future growth as a company.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 1(c) - Strategy
For this question, please state the time period and where possible the associated financial implications.

Please detail the objectives and targets of the strategies you have undertaken or are planning to take to manage the risks and opportunities you have detailed in questions 1(a) and 1(b) above. Please include adaptation to physical risks.
Although we have not set an absolute emissions reduction target, we have developed a three-year mitigation strategy which includes the following steps to reduce our Scope 1 and Scope 2 emissions:
- Purchasing renewable energy certificates
- Focusing on energy conservation measures
- Advocating the need for collaboration

Because the energy used to power our retail stores contributes the largest portion of our total GHG emissions (81 percent), we believe investing in renewable energy is the most effective means to offset our emissions. Therefore, our first step in emissions mitigation in 2005 was to purchase enough renewable wind energy, using renewable energy certificates (RECs), to match five percent of the energy needed to power Starbucks company-operated stores in North America. This translated to an emissions offset of 34.2 million pounds (15.5. kilograms) of CO2.

In fiscal 2006, Starbucks announced plans to strengthen our commitment to emissions reduction by purchasing enough renewable energy certificates to offset 20 percent of the energy used in our U.S. and Canada company-operated stores. This translates to an emissions offset of 124.2 million pounds of carbon dioxide. As of March 2006, our 20 percent commitment makes Starbucks the second largest retail purchaser of wind RECs as ranked on the EPA’s Green Power Partnership list.

Starbucks also supports a Transportation Options Program which provides subsidies to employees at the Starbucks Support Center (SSC) in Seattle, Washington, to use public transportation and alternatives such as biking and carpooling. In fiscal 2005, approximately 29 percent of SSC employees participated in the program. Starbucks also contracts with Flexcar, a car-sharing network that provides vehicles for its SSC employees during the workday so they can leave their cars at home.

Additionally, Starbucks has joined with other organizations to learn how to address this issue and to engage others. In 2004, Starbucks joined the World Resources Institute’s Green Power Market Development Group, a collaboration of 13 leading corporations and the World Resources Institute dedicated to building corporate markets for green power and reducing carbon dioxide emissions by developing higher reliance on renewable energy resources. In 2005, Starbucks joined the Climate Group, a nonprofit organization that is building an international coalition of business and government leaders who are committed to emissions reduction. Additionally, Starbucks committed to support Global Green USA, a nonprofit organization that brings individuals, businesses, government and nongovernmental organizations together to take action on climate change.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Section A – 2 Greenhouse Gas Emissions Accounting
Question 2(a)(i) – Methodology – Accounting Year
Please state the accounting year used to report GHG emissions.
Financial accounting year: 01 October 2003

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 Yes 
2003 is the most recent year Starbucks reported our GHG emissions

 
Question 2(a)(ii) – Methodology
Please state the methodology by which emissions are calculated.
 GHG Protocol 

 
Please provide additional information below

 
Please state the reporting boundaries for the data provided in this questionnaire
Option 3 – entities owned by the company

 
Please provide additional information below

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 2(a)(iii) – Methodology – External verficiation
Please state whether the information provided has been externally verified or audited.
 Yes 
Moss Adams LLP (Seattle, Washington USA) verifies the information provided in Starbucks annual Corporate Social Responsibility Report.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 2(a)(iv) – Methodology – Variations in emissions
Please provide an explanation for any significant variations in emissions from year to year eg: due to major acquisitions, divestments, introduction of new technologies etc
We experienced no significant variations in emissions due to acquisitions or introduction of new technologies. Our electricity consumption increased slightly per square foot of store space from 6.40 kilowatt-hours per month in 2005 to 6.57 kilowatt-hours per month in 2006. Although we did not perform a climate inventory in 2006, growth of the company in 2006 led to an overall increase in emissions prior to calculating the impacts of our purchase of wind RECs representing 20% of our energy consumption from U.S. and Canada company-operated stores.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 2(b) – Scope 1 and Scope 2 GHG Protocol - Year 1 answers
Please state your direct and indirect GHG emissions in metric tonnes CO2e for global and Annex B countries.

If you are having difficulty reporting your emissions figures in CO2e metric tonnes please see the further guidance on answering the CDP5 questionnaire available here.
Please enter the accounting year used to report GHG emissions details below.
01 October 2003

 
Total Global Emissions

 
Total Emissions Annex B countries

 
Scope 1 activity emissions globally
CO2e metric tonnes

 
Scope 1 activity emissions Annex B

 
Scope 2 activity emissions globally

 
Scope 2 activity emissions Annex B

 
Please state the MWh of electricity purchased and consumed by your company globally.

 
Please state the MWh of electricity purchased and consumed by your company in Annex B countries.

 
Please state the percentage of purchased and consumed MWh of electricity from renewables globally.

 
Please state the percentage of purchased and consumed MWh of electricity from renewables in Annex B countries.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 Yes 
In 2004, Starbucks conducted an inventory of our 2003 GHG emissions using the World Resources Institute Greenhouse Gas Protocol. At that time, we reported total emissions of 295,000 tons of CO2 equivalents from our operations. Starbucks has not conducted a comprehensive GHG inventory since that time. Starbucks currently does not report MWh of electricity purchased globally. We currently offset 20% of our U.S. and Canada company-operated stores electricity consumption with renewable wind energy certificates.

 
Question 2(c) – Scope 3 of GHG Protocol - Year 1 answers
Please enter the accounting year used to report GHG emissions details below.
01 October 2003

 
If possible, please provide estimates in metric tonnes CO2e for the following categories of emissions:

Use/disposal of company’s products and services

 
Your supply chain

 
External distribution/logisitics

 
Employee business travel

 
Other

 
Please provide details of the sources of emissions if you have entered a figure in the "Other" box

 
Please provide further information about your measurement of scope 3 emissions.
We do not currently measure Scope 3 emissions.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Section B – 3 Additional Greenhouse Gas Emissions Accounting
Question 3(a) – Scope 1 and Scope 2 GHG Protocol emissions per country
Using the methodology set out in 2(a), please state your emissions per country. NB : If it is not practical for you to list emissions on a full country by country basis, please list here countries with significant emissions in the context of your business and combine the remainder under “rest of world”. If you already have this information in another format (e.g Excel) please attach it.
Country Scope 1
Emissions (Tonnes CO2e)		 Scope 2
Emissions (Tonnes CO2e)

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Question 3(b) – Facilities covered by the EU Emissions Trading Scheme
Please provide details of total emissions in metric tonnes CO2e for all facilities covered by the EU ETS and details of allowances issued under the applicable National Allocation Plans
Emissions from the total of all facilities covered by EU ETS figure in metric tonnes CO2e

 
Total number of allowances issued under all National Allocation Plans applicable to installations covered by the EU ETS

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 Yes 
Starbucks currently has no facilities covered by the EU ETS

 
Question 3(c) – EU ETS impact
What has been the impact on your profitability of the EU Emissions Trading Scheme?
We have not participated in the EU Emissions Trading Scheme.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Section B – 4 Greenhouse Gas Emissions Management
Question 4(a)(i) Reduction programmes
What emission reduction programs does your company have in place? Please include any reduction programs related to your operations, energy consumption, supply chain and product use/disposal.
Does your company have an emissions reduction program?
 Yes 

 
What is the baseline year for the emissions reduction program? (YYYY format eg. 1990)

 
If you do not use a baseline year for your reduction programme, please provide details of your reference point for the programme here.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 4(a)(ii) Reduction programmes
What are the emissions reduction targets and over what period do those targets extend?
Emissions reductions target (%)

 
Time frame for reduction target

 
Further information.
Although we have not set an absolute emissions reduction target, we have developed a three-year mitigation strategy which includes the following steps to reduce our Scope 1 and Scope 2 emissions:
- Purchasing renewable energy certificates
- Focusing on energy conservation measures
- Advocating the need for collaboration

Because the energy used to power our retail stores contributes the largest portion of our total GHG emissions (81 percent), we believe investing in renewable energy is the most effective means to offset our emissions. Therefore, our first step in emissions mitigation in 2005 was to purchase enough renewable wind energy, using renewable energy certificates (RECs), to match five percent of the energy needed to power Starbucks company-operated stores in the U.S. and Canada. This translated to an emissions offset of 34.2 million pounds (15.5. kilograms) of CO2.

In fiscal 2006, Starbucks announced plans to strengthen our commitment to emissions reduction by purchasing enough renewable energy certificates to offset 20 percent of the energy used in our U.S. and Canada company-operated stores. This translates to an emissions offset of 124.2 million pounds of carbon dioxide. As of March 2006, our 20 percent commitment makes Starbucks the second largest retail purchaser of wind RECs as ranked on the EPA’s Green Power Partnership list.

Starbucks also supports a Transportation Options Program which provides subsidies to employees at the Starbucks Support Center (SSC) in Seattle, Washington, to use public transportation and alternatives such as biking and carpooling. In fiscal 2005, approximately 29 percent of SSC employees participated in the program. Starbucks also contracts with Flexcar, a car-sharing network that provides vehicles for its SSC employees during the workday so they can leave their cars at home.

Additionally, Starbucks has joined with other organizations to learn how to address this issue and to engage others. In 2004, Starbucks joined the World Resources Institute’s Green Power Market Development Group, a collaboration of 13 leading corporations and the World Resources Institute dedicated to building corporate markets for green power and reducing carbon dioxide emissions by developing higher reliance on renewable energy resources. In 2005, Starbucks joined the Climate Group, a nonprofit organization that is building an international coalition of business and government leaders who are committed to emissions reduction. Additionally, Starbucks committed to support Global Green USA, a nonprofit organization that brings individuals, businesses, government and nongovernmental organizations together to take action on climate change.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 4(a)(iii) Reduction programmes
What investment has been/will be required to achieve the targets. (In US $)

 
Over what time period? (In years)

 
More detail
Starbucks has not publicly released specific investment costs associated with our emissions reduction program.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Question 4(a)(iv) Reduction programmes
What emissions reductions and associated costs or savings have been achieved to date as a result of the program?
Starbucks has not publicly released specific costs or savings associated with our emissions reduction program.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Question 4(a)(v) Reduction programmes
What renewable energy and energy efficiency activities are you undertaking to manage your emissions?
In fiscal 2006, Starbucks announced plans to strengthen our commitment to emissions reduction by purchasing enough renewable energy certificates to offset 20 percent of the energy used in our U.S. and Canada company-operated stores. This translates to an emissions offset of 124.2 million pounds of carbon dioxide. As of March 2006, our 20 percent commitment makes Starbucks the second largest retail purchaser of wind RECs as ranked on the EPA’s Green Power Partnership list.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 4(b) Emissions trading
What is your company’s strategy for trading in the EU Emissions Trading Scheme, CDM/JI projects and other trading systems (e.g. CCX, RGGI, etc), where relevant? Explain your involvement for each of the following:
EU ETS
Our company is not currently involved in the EU ETS

 
CDM/JI
Our company is not currently involved in any CDM/Ji projects

 
CCX
Our company is not currently involved in the CCX

 
RGGI
Our company is not currently involved in RGGI

 
Others

 
More detail

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 4(c) Emissions intensity
Please state which measurement you believe best describes your company’s emissions intensity performance? What are your historical and current emissions intensity measurements? What are your targets?
Best measurement of emissions intensity for you company
Because the energy used to power our retail stores contributes the largest portion of our total Scope 1 and Scope 2 GHG emissions (81 percent in 2003 baseline year), we believe measuring kilowatt-hours of purchased electricity per square foot of store operations is the best surrogate to describes our emissions intensity performance.

 
Historical intensity details
Purchased electricity in retail stores:
2004 - 6.21 kilowatt-hours per square foot per month
2005 - 6.40 kilowatt-hours per square foot per month

 
Current intensity details
Purchased electricity in retail stores:
2006 - 6.57 kilowatt-hours per square foot per month


 
Target details

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 4(d) Energy costs
What are the total costs of your energy consumption e.g. from fossil fuels and electric power? What percentage of your total operating costs does this represent?
Total costs of energy consumption (in US$)

 
Percentage of total operating costs (%)

 
More Details.
Starbucks does not separate costs of energy consumption from general utility costs.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?

 
Question 4(e) Planning
Do you estimate your company’s future emissions? If so please provide details of these estimates and summarize the methodology for this. How do you factor the cost of future emissions into capital expenditure planning? Have these considerations made an impact on your investment decisions?
Do you estimate your company’s future emissions?
 No 

 
Please provide details of these estimates and summarize the methodology for this or provide details of why you do not estimate your company's future emissions.
Starbucks does not currently disclose estimated future electricity consumption and emissions.

 
How do you factor the cost of future emissions into capital expenditure planning?

 
Have these considerations made an impact on your investment decisions?

 
Please provide details below.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Section B – 5 Climate Change Governance - Responsibility
Question 5(a)(i) Responsibility
Which Board Committee or other executive body has overall responsibility for climate change?
In fiscal 2005, Starbucks Emerging Issues Council, a group of 18 senior Starbucks executives prioritized climate change as a key issue, due to the threat posed to the environment and to coffee-growing communities. The Council also approved our emissions reduction strategy and will be involved in determining what further measures are needed for Starbucks to proactively and responsibly address the issue of climate change in a leadership capacity.

Today, Starbucks Corporate Social Responsibility (CSR) Executive Committee has overall responsibility and determines company priorities for the Starbucks climate footprint. The CSR Executive committee is comprised of senior Starbucks executives and board members.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 5(a)(ii) Responsibility
What is the mechanism by which the Board or other executive body reviews the company’s progress and status regarding climate change?

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
Question 5(b) Individual performance
Do you provide incentive mechanisms for managers with reference to activities relating to climate change strategy, including attainment of GHG targets?
 No 

 
If so, please provide details.

 
Would you like to provide any additional information relating to this question that you have not provided elsewhere?
 No 

 
General Information
Please add any general information and attachments that are not related to a specific question but that you would still like to include with your response here.