Starbucks and the Path to Net Zero

Source: https://about.starbucks.com/stories/2023/whats-inside-a-greener-store

Starbucks, with nearly 40,000 stores worldwide, operates at a large scale where even small actions such as brewing coffee and using disposable straws can create a significant environmental impact. To this end, Starbucks has been committed to reducing its carbon emissions and working towards a long-term net-zero goal through making changes in store design, product ingredients, and customer behavior.

The annual greenhouse gas emissions of Starbucks are estimated at approximately 14 million tonnes of CO2 equivalent per year. Approximately 90% of these emissions are Scope 3, which encompasses indirect sources, including coffee cultivation, dairy processing, packaging production, and transportation. On the other hand, those associated with store operations and electricity consumption, categorized as Scope 1&2, are relatively lower. It implies that Starbucks’ carbon footprint has more to do with the way it produces products than with how it runs its stores.

To address this issue, Starbucks has aimed to cut its total greenhouse gas emissions by 50 percent by 2030 from a level measured in 2019. This is in addition to cuts in water use and waste. Its key goal in this is achieved through the fulfillment of its strategy under the Greener Stores Initiative, which aims to reduce energy use and production processes that release greenhouse gases to the environment. Stores participating in this program have managed to cut energy and water use by about 30% on average.

Starbucks has also been concerned with changes occurring in its products. Starbucks has been expanding its plant-based milk offerings, which tend to have a lower carbon footprint than dairy milk. Milk constitutes a substantial portion of most beverages, suggesting potential to reduce emissions across many transactions. In particular, Starbucks has expanded its options to include oat, almond, and soy milk, with oat milk generally having the lowest carbon footprint. Furthermore, Starbucks has introduced rewards for reusable cups and tested return systems in selected cities to minimize the use of disposable cups, which contribute to greenhouse gas emissions through their production and disposal.

However, reducing emissions is difficult because most emissions from Starbucks fall under agricultural and supply chains. Starbucks cannot control agricultural practices, fertilizer application, or transportation networks, which make up most emissions of carbon. On the other hand, as Starbucks expands its operations, overall emissions can increase despite reductions in emissions per cafe location. This means that improving Starbucks’ sustainability is not always immediately linked to reducing the coffee chain’s emissions. In some cases, efficiency gains are offset by higher overall production and sales.

Overall, Starbucks' carbon strategy highlights that big retailers can also make meaningful impacts on efficiency, products, and waste reduction, while also showing that, for big emission reductions, a change in the supply chain is necessary. Looking ahead, Starbucks’ ability to meet its net-zero goals will depend largely on how effectively it works with the supply chain, not only in its stores.