Starbucks Leads the way in Sustainable Coffee Supply Chains
The global coffee industry is booming, with revenue anticipated to exceed a staggering US$200bn over the coming years.
However, this growth has already come at a significant environmental and social cost, from deforestation to unethical labour practices.
But change is afoot, as coffee companies attempt to make their supply chains more environmentally-friendly to meet consumer demand and abide by incoming legislation, such as the EU's landmark Deforestation Regulation.
As the organisation at the centre of the world's largest coffee supply chain, Starbucks is at the forefront of this sustainability drive.
The Seattle-based powerhouse, which procures around 800 million pounds of coffee each year – 5% of the world's supply – is committed to ensuring a sustainable future for all.
As Michelle Burns, EVP of Global Coffee, Social Impact & Sustainability at Starbucks, puts it, "the potential to positively impact the lives and livelihoods of farmers and their communities is tremendous."
Protecting forests and empowering farmers
Starbucks is focusing on reducing its carbon and water footprints, starting on farms.
This includes promoting and distributing climate-resistant coffee tree varietals, protecting and restoring at-risk forests in key coffee landscapes and equipping farmers with precision agronomy tools.
Two decades ago, Starbucks developed one of the industry's first ethical sourcing standards, the Coffee and Farmer Equity Practices verification programme. This allows the company to ensure high-quality, ethically-sourced coffee, while also gaining insights into the challenges faced by farmers and supply chain operations in dozens of 30 coffee-producing countries.
Starbucks has also opened 10 farmer support centres around the world, providing more than 200,000 farmers with access to education, resources and the latest findings relating to soil management techniques, disease-resistant trees and beyond.
What's more, the business' one-of-a-kind Hacienda Alsacia farm in Costa Rica has become a global research, development and innovation hub. Here, agronomists have developed six climate-resistant coffee varietals that Starbucks offers to farmers worldwide through its open-source agronomy initiative.
Investing in new tech
Starbucks is also investing in new technologies to help achieve its sustainability goals.
The company has installed 1,300 eco wet mills around the world, which can save up to 80% of water in coffee processing. With 200,000 wet mills currently in the Starbucks supply chain, the potential for scaling this technology is significant.
"I am seeing the possibilities and I get excited about the overall positive impact we can have," adds Michelle.
Committed to becoming resource positive, Starbucks is also conducting a material biodiversity impact assessment with respect to its coffee supply chain, due for completion by the end completed by the end of FY25.
As the EU Deforestation Regulation is implemented, forcing companies to trace their supplies back to a plot of land, Starbucks' decades-long commitment to sustainable sourcing and supporting farmers puts it in a strong position.
"People have watched us working hard to do the right things, find solutions and take great care of farmers and their communities, for decades," concludes Michelle.
"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."
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