Beyond the cup. - Starbucks

Developing Innovative andFlexible Solutions to BringAbout ChangeThe same innovative spirit that has been a driving force forour business success is also applied to our environmentalpractices. Described below are some of the creative solutionswe’ve adopted to address one of our perennial challenges,waste reduction. We also report on our efforts to design andbuild a prototype of Starbucks sustainable store of the future.RECYCLING AND WASTE REDUCTIONWhether it’s our efforts to recycle materials, compostbiodegradable matter, or reuse products, it all helps to reducethe volume of solid waste that we generate.To better understand the composition and scale of the wastegenerated from our retail stores, we conducted another wasteaudit in 2005, three years after the first audit. In the latestaudit we found that cardboard, plastic and soiled compostablepaper make up the greatest volume of store waste. Here aresome ways we are reducing waste in our stores.RecyclingThroughout our North American operations, store managersare expected to participate in local recycling programs. Wetrack the number of our U.S. and Canada company-operatedstores that have recycling programs. While recycling is notfeasible at every location, we have recently overcome somebarriers to make it easier for more of our stores to participate.At the end of fiscal 2005, 77 percent of our U.S. and Canadacompany-operated stores where Starbucks controls waste andrecycling had recycling programs, compared to 70 percent theprevious year. (See page 61.)In many of our international markets there is also stronginterest in recycling. For instance, Starbucks partners inGermany separate plastic, paper, glass and biodegradablewaste for recycling purposes. In France, our new store designsare incorporating space for recycling bins. Starbucks UKpiloted recycling programs in 90 local stores last summer andplans to include more locations in 2006. In Greece, Starbucksand the Hellenic Children’s Museum hosted seminars thatintroduced children to recycling and reusing.Reusable MugsTwo ways our customers can help cut down on waste are bybringing in their own commuter mugs, which earns thema 10-cent discount, and by requesting that their beveragesbe served in ceramic mugs when it’s a “for-here” order.Starbucks U.S. customers used commuter mugs more than13 million times in fiscal 2005. (See page 61.) Although wedon’t currently track commuter mug usage outside the U.S.and Canada, this measure is gaining popularity among ourcustomers in places such as the UK, China and Australia.In Japan, a special task force has been initiated to introducereusable ceramic mugs to help reduce waste and comply withnew regulations.Reducing Coffee Grounds WasteWe continue to promote Grounds for Your Garden, a programthat offers complimentary five-pound (2.27-kilogram) bagsof used coffee grounds to customers and local parks to add totheir soil. This program has been popular with our customersaround the world, including in France, Spain, the UK,the Philippines, Greece, Cyprus, China, New Zealand andHawaii. Because coffee grounds account for approximatelyone-third of Starbucks solid waste by weight, we plan to keepthis initiative.Reducing Food WasteIn Japan, the government is mandating a 20 percentreduction in food waste, which becomes effective in April2006. Starbucks Japan has created a special task force tostrategize ways to reduce food waste and comply with thisnew requirement. In doing so, we hope this will expose newmeasures we can adopt in our North American stores andother international locations.Starbucks partner Hilary Andersen gladly gives her customers a 10-cent discountwhenever they use their own commuter mugs, a measure that helps to conserve theuse of paper cups.55ENVIRONMENT