Starbucks Pioneers Sustainability in US$200bn Coffee Market

The coffee industry is experiencing remarkable growth, with projected revenues expected to surpass US$200bn in the coming years. Yet this expansion has not been without consequences, as environmental degradation and unethical labour practices have marred the industry's reputation.

In response to increasing consumer awareness and impending regulations like the EU's Deforestation Regulation, coffee companies are now actively working to improve the sustainability of their supply chains. At the forefront of this movement is Starbucks, the world's largest coffee chain.

As a global leader procuring approximately 5% of the world's coffee supply—around 800 million pounds annually - Starbucks recognises its pivotal role in shaping the industry's future. The Seattle-based company has committed to ensuring a sustainable future for all stakeholders involved in the coffee production process.

By leveraging its extensive reach and influence, Starbucks aims to address critical issues such as deforestation, ethical sourcing and environmental conservation. The company's efforts reflect a growing trend in the industry towards more responsible and sustainable practices, balancing economic growth with environmental stewardship and social responsibility.

In our Top 10: Non- Alcoholic Beverages, we included cold brew coffee. The biggest manufacturer of which is Starbucks. 

Starbucks leads farm-level sustainability in innovating for climate-resilient coffee 

Starbucks is intensifying its efforts to reduce environmental impact, with a primary focus on minimising carbon and water footprints at the farm level. 

Building on its two-decade-old Coffee and Farmer Equity Practices verification programme, Starbucks continues to ensure ethically sourced, high-quality coffee while gaining valuable insights into farmer challenges across 30 coffee-producing countries.

The company has established a global network of 10 farmer support centres, providing over 200,000 farmers with access to education, resources and cutting-edge soil management techniques. 

Additionally, Starbucks' Hacienda Alsacia farm in Costa Rica serves as a global research and innovation hub, where agronomists have developed six climate-resistant coffee varieties available to farmers worldwide through an open-source agronomy initiative.

To further its sustainability goals, Starbucks is investing in new technologies such as eco wet mills. The company has already installed 1,300 of these mills globally, which can reduce water usage in coffee processing by up to 80%. With 200,000 wet mills in its supply chain, Starbucks sees significant potential for scaling this water-saving technology.

Starbucks leads coffee industry in sustainability, with biodiversity assessment and EU compliance underway

Michelle Burns, EVP of Global Coffee, Social Impact & Sustainability at Starbucks, sees the coffee chains’ potential to positively impact the lives and livelihoods of farmers and their communities as ‘tremendous’.

"I am seeing the possibilities and I get excited about the overall positive impact we can have," shared Michelle. "People have watched us working hard to do the right things, find solutions and take great care of farmers and their communities, for decades. They grant us an amount of trust and opportunity to help lead the discussion around ensuring a sustainable future of coffee for all. That is a privilege as well as a responsibility, but it's so important that we follow through."

Starbucks is reinforcing its commitment to sustainability by undertaking a comprehensive material biodiversity impact assessment of its coffee supply chain, scheduled for completion by the end of fiscal year 2025. This initiative aligns with the company's broader goal of becoming resource positive.

The timing of this assessment is particularly relevant given the impending implementation of the EU Deforestation Regulation. This new legislation will require companies to provide detailed traceability of their supplies, tracking them back to specific plots of land. Starbucks' dedication to sustainable sourcing practices and farmer support programmes positions the company favourably to meet these new regulatory requirements. 

Starbucks is well-prepared to adapt to the evolving regulatory landscape while continuing to advance its sustainability objectives.

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