Starbucks expands green initiatives

Starbucks China is making its third consecutive appearance at the China International Supply Chain Expo held in Beijing from Wednesday to Sunday, signaling its strong commitment to sustainable development and the localization of its supply chain strategy.

This year, Starbucks expanded its exhibition footprint with creative green initiatives in partnership with Envision Group, a global leader in renewable energy systems.

The coffee chain is showcasing its end-to-end sustainability efforts, ranging from responsible sourcing to green retail operations.

For the first time, Starbucks' ready-to-drink business is also being featured, signaling a maturing local supply chain and its broader push to elevate its brand value under a tailored "China Model".

"Starbucks' ongoing participation in the expo reflects our long-term vision to root our business in China while driving high-quality, sustainable growth along with our suppliers and across the coffee industry," said Stephen Fung, vice-president of Starbucks China Supply Chain, Project and Innovation. "We are building a sustainable supply chain through digital and green transformations to boost our growth in the future."

As part of its expanded collaboration with Envision, Starbucks is prioritizing the creation of a green supply chain network, setting new benchmarks in emissions reduction and industry best practices. Research shows that nearly 70 percent of value chain carbon emissions occur upstream. In response, Starbucks is working closely with suppliers through a carbon reduction alliance to address these challenges collectively, said the company.

At the heart of its emissions strategy is the adoption of Envision's digital carbon management system which measures carbon footprints across core operations and supplier networks.

The system is currently in pilot use and will be rolled out across all direct and key indirect suppliers over the next three years, with the goal of mapping the full carbon footprint of thousands of products and implementing customized carbon reduction pathways.

The company's sustainability practices span the entire coffee value chain. In Yunnan province, Starbucks has partnered with farmers on eco-friendly cultivation techniques, while in Kunshan, Jiangsu province, it operates the world's most energy-efficient production and logistics facility.

In-store, Starbucks promotes a green lifestyle through initiatives such as biodegradable packaging and its green store certification program. Notably, all green-certified stores in China now operate using 100 percent renewable electricity.

In September 2023, Starbucks inaugurated its China coffee innovation park in Kunshan, Jiangsu province.

With an investment of 1.5 billion yuan ($209 million), the facility represents Starbucks' largest overseas manufacturing investment to date and its most energy-efficient production base globally.

It marks the successful integration of a vertically aligned, bean-tocup supply chain.