08.02.2006 18:30:00

Starbucks Demonstrates Its Commitment to Social Responsibility Throughout Its Business in Fiscal 2005 Corporate Social Responsibility Annual Report

Company Improves Environmental Impact of Its Paper Cups, Exceeds Goals for Sustainable Coffee Purchases, and Increases Purchases of Renewable Energy

In its fifth Corporate Social Responsibility (CSR) Annual Report,available today on the Company's website, Starbucks Corporation(NASDAQ:SBUX) candidly reports on the progress made to operate itsbusiness in a socially responsible way.

Announced at Starbucks Annual Meeting of Shareholders today, thereport, entitled "Beyond the Cup," continues to demonstrate theCompany's commitment to increased transparency, public disclosure andstakeholder feedback. Throughout the report, Starbucks shows itsiconic white cup as a way to offer more candor and disclosure to itsreaders by using the cup as a vehicle to address frequently askedquestions from a variety of stakeholders.

"We believe that being a good corporate citizen is key to ourfuture growth and success," stated Jim Donald, Starbucks chiefexecutive officer. "We are proud of the progress we are making andlook forward to continuing our efforts to encourage the sustainableproduction of high quality coffee, reduce our environmental footprintand give back to the communities we serve."

In addition to providing new information about corporategovernance, ethics and sustainable trade, the report highlightsseveral of Starbucks key CSR accomplishments during Fiscal 2005including:

An Industry First: The Recycled Cup

Starbucks environmental leadership drove development of thefirst-ever hot beverage cup to contain post-consumer fiber produced bya process that has received a favorable safety review from the Foodand Drug Administration (FDA). Designed in collaboration withStarbucks suppliers, Solo Cup Company, MeadWestvaco and MississippiRiver Corporation, the new cups contain 10 percent post-consumerrecycled paper and will begin rolling out to Starbucks U.S. storesduring the second quarter of Fiscal 2006.

Starbucks Pays Premium Prices and Grows Coffee And Farmer Equity(C.A.F.E.) Purchases

Starbucks commitment to the sustainability of coffee farmers andtheir communities underlies its pledge to pay premium prices for highquality coffee. In Fiscal 2005, Starbucks paid an average price of$1.28 per pound for all of its green (unroasted) coffee -- 23 percenthigher than the average commodity (New York "C") market price duringthis time frame.

The Company's coffee-buying strategies are intended to contributeto the economic and social well-being of coffee farmers andcommunities, as well as to the conservation of the environment. Insupport of these efforts, Starbucks is pleased to report that inFiscal 2005, it purchased 76.8 million pounds of coffee from approvedC.A.F.E. Practices approved suppliers in seven countries, exceedingits goal of 75 million pounds.

C.A.F.E. Practices was created by Starbucks in 2001, with inputfrom nongovernmental organizations, academics, governments and thecoffee industry to assure high-quality coffee is grown and processedwith environmental sensitivity and social equity throughout the coffeesupply chain.

Starbucks Becomes Largest Purchaser of Fair Trade Certified(TM) inNorth America

In Fiscal 2005, Starbucks significantly increased its purchases ofFair Trade Certified(TM) coffee. The Company purchased 11.5 millionpounds of Fair Trade Certified(TM) coffee, exceeding its goal of 10million pounds. This represents approximately 10 percent of globalFair Trade Certified(TM) coffee imports. Twenty-one percent of theFair Trade Certified(TM) coffee imported into the U.S. in Fiscal 2005was purchased by Starbucks, making the Company the largest purchaserof Fair Trade Certified(TM) coffee in North America.

Starbucks Significantly Increases Commitment to Purchase RenewableEnergy

Starbucks is mindful of the long-term implications of climatechange on the environment and its impact on coffee-growingcommunities. To offset the Company's emissions that contribute toclimate change, Starbucks has committed to purchasing 150 million kWhof Green-e certified wind renewable energy certificates (RECs) inFiscal 2006, which is the equivalent of 20 percent of the annualelectricity consumed by Company-operated retail stores in the UnitedStates and Canada. This has a similar carbon reduction impact toremoving 12,194 average passenger vehicles from U.S. roadways for oneyear.

Additionally, this move represents a significant increase fromStarbucks original Fiscal 2005 commitment to purchase enough RECs tomatch five percent of the energy needed to power its Company-operatedstores in the U.S. and Canada.

Commitment to transparency is an inherent part of Starbuckscommitment to CSR -- and the Starbucks CSR Annual Report is one of theCompany's primary vehicles for providing transparency. For the fourthyear in a row, Starbucks has taken the extra step of ensuring thecredibility of the report by having it independently verified by MossAdams, LLP, a certified public accountant, to provide assurance tostakeholders that the information is accurate and consistent with theCompany's values, policies and practices.

Starbucks CSR Annual Report is available atwww.starbucks.com/csrannualreport. To request a printed copy, call1-800-23-LATTE. Starbucks values ongoing feedback from itsstakeholders. Readers are encouraged to complete an online survey atwww.starbucks.com/csrsurvey.

About Starbucks Coffee Company

Starbucks Coffee Company is the leading retailer, roaster andbrand of specialty coffee in the world, with more than 10,500 retaillocations in North America, Latin America, Europe, the Middle East andthe Pacific Rim. The Company is committed to offering the highestquality coffee and the Starbucks Experience while conducting itsbusiness in ways that produce social, environmental and economicbenefits for communities in which it does business.

Interviews available with:

-- Sandra Taylor, senior vice president, Corporate Social Responsibility

-- Sue Mecklenburg, vice president, Business Practices

-- Ben Packard, director, Environmental Affairs

Please call Starbucks media contact, Heather Robertson at206-318-7100 to schedule.

Meeting b-roll footage will be available for download at IA-6,Transponder 21(C-Band) Downlink Frequency: 4120 Vertical Audio 6.2/6.8on Wednesday, February 8 from 10 a.m. (PT)/1 p.m. (ET) and 1 p.m.(PT)/4 p.m. (ET).

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