Starbucks Issues the First U.S. Corporate Sustainability Bond
May 16 2016 - 4:05PM
Business Wire
Sustainability bond offering is part of
Starbucks comprehensive approach to sustainable coffee sourcing and
industry leading efforts for positive environmental and social
impacts in the global coffee supply chain
Starbucks Corporation (NASDAQ: SBUX) today announced that it has
closed an underwritten public offering of senior notes, including
the first U.S. Corporate Sustainability Bond. The company will use
the net proceeds from the offering of $500 million in 2.450% Senior
Notes due 2026 to enhance its sustainability programs around coffee
supply chain management through Eligible Sustainability Projects.
This includes coffee purchases from suppliers verified by a
third-party as complying with Starbucks ethical sourcing
verification program of Coffee and Farmer Equity (C.A.F.E.)
Practices, the development and operation of farmer support centers
in coffee growing regions, as well as short and long term loans
made through Starbucks Global Farmer Fund.
“Coffee is at the core of our business, and we intend to
continue to finance initiatives that will make a positive social
and environmental impact in our coffee supply chain as well as
other areas across our business,” said Scott Maw, chief
financial officer, Starbucks. “Issuing a bond focused on
sustainable sourcing, demonstrates that sustainability is not just
an add-on, but an integral part of Starbucks, including our
strategy and finances.”
Each year, Starbucks invests significantly in its comprehensive
approach to ethically source its coffee. This includes supporting
coffee farming communities, mitigating the impact of climate
change, and supporting long-term crop stability and farm
sustainability. Starbucks operates a network of eight farmer
support centers around the world (Rwanda, Tanzania, Colombia,
China, Costa Rica, Indonesia, Guatemala and Ethiopia), and has a
commitment to provide $50 million in farmer financing in the form
of short and long term loans. Starbucks also purchased a coffee
farm in Costa Rica and has turned this into a global agronomy
center. All of this is grounded in the company’s open sourced
C.A.F.E. Practices developed with Conservation International over
15 years ago. This rigorous set of best practices helps to ensure
that the methods used in growing and processing coffee are
efficient, effective and sustainable, both environmentally and
socially. In 2015, 99% of Starbucks 551 million pounds of coffee
purchases were verified as ethically sourced and Starbucks became a
founding member of the Sustainable Coffee Challenge - a call to
action to make coffee the first sustainable agricultural product in
the world.
“The longevity of the coffee industry is directly linked to the
social, economic and environmental conditions of coffee communities
around the world,” said Craig Russell, executive vice president,
Starbucks Global Coffee. “This new sustainability bond offers a
way for investors to better understand the work we are doing to
help ensure that there is a future for farmers and our
industry.”
Sustainalytics, a leading global provider of environmental,
social and governance (ESG) research and ratings, delivered the
second opinion for the Sustainability Bond. This independent review
offers investors additional insight into the proposed projects to
be funded by the bond, as well as the expected positive
environmental and social impacts of these projects. Sustainalytics
also rates Starbucks as an ESG leader in both overall and relative
performance to its peers.
“Improving the efficiency and effectiveness of coffee farming
practices helps to strengthen the overall sustainability of the
coffee supply chain while advancing the socioeconomic conditions of
coffee farmers,” said Simon MacMahon, Sustainalytics’ Executive
Vice President of Advisory Services. “Starbucks has a
significant influence on the global coffee market and is an
industry leader when it comes to supply chain standards and
sustainability initiatives. We are excited to support Starbucks
Sustainability Bond and applaud their efforts to advance
sustainability practices throughout their value chain.”
Starbucks will publish annual updates of the allocation of the
proceeds throughout the term of the sustainability bond until the
proceeds have been fully allocated to projects meeting the
eligibility criteria. These updates will be reported publicly on
the Starbucks website at www.starbucks.com and may include
additional descriptions of select projects funded with
sustainability bond proceeds, and, where possible, their
environmental and/or social impacts.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with stores around the globe, the company is the premier roaster
and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we
bring the unique Starbucks Experience to life for every customer
through every cup. To share in the experience, please visit us in
our stores or online at news.starbucks.com or
www.starbucks.com.
Forward-Looking
Statements
Certain statements contained in this release are
“forward-looking statements” within the meaning of applicable
securities laws and regulations, including statements about the
expected closing of a public offering or senior notes and the use
of proceeds of such offering. Such forward-looking statements are
based on current management expectations and satisfactions of
certain conditions that are subject to various risks and
uncertainties, including market conditions and those risks detailed
in the Company’s filings with the Securities and Exchange
Commission, including the “Risk Factors” section of the Starbucks
Annual Report on Form 10-K for the fiscal year ended September 27,
2015, and the prospectus and prospectus supplement delivered in
connection with the public offering of senior notes discussed in
this release. The company assumes no obligation to update any of
these forward-looking statements.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160516006437/en/
Starbucks CorporationInvestor Relations:Durga Doraisamy,
206-318-7118investorrelations@starbucks.comorMedia:Alisha
Damodaran, 206-318-7100press@starbucks.com
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Starbucks (NASDAQ:SBUX)
Historical Stock Chart
From Apr 2023 to Apr 2024