Starbucks completes $1bn sustainability bond
The coffee giant, Starbucks, has completed a $1bn sustainability bond in a bid to support ethically sourced coffee, according to Supply Chain Dive.
In a press release, it was revealed that the bond is set to include purchasing coffee verified by Coffee and Farmer Equity Practices, research and development, loans to support coffee farmers as well as developing and operating farmer support centers.
Starbucks is also partnering with responsibility in a $20mn investment to help coffee communities in Latin America, Africa and Asia. Following the bond, which is set to last for 30 years, it is expected that it will enable the development of LEED-certified stores and investments in more sustainable cups and packaging.
The firm is using the investment to enable them to achieve a more sustainable coffee supply chain in its worldwide operations. Starbucks aims to build 10,000 more environmentally friendly stores in the world by 2025 and strawless lids to develop a recyclable and compostable cup.
In a press release, Starbucks CFO Patrick Grismer, commented: “[The bond] illustrates a trend toward heavier interest from investors in our socially and environmentally focused projects — in this case supporting coffee farmers and leading in green retail. Our intent is that, by issuing a Sustainability Bond, we're providing investors an opportunity to participate in our sustainability efforts, and our hope is that this inspires others to pursue more sustainability-related investing opportunities.”