Global coffee chain Starbucks has issued a $1bn sustainability bond to support its Greener Retail initiative and ethical coffee sourcing.
The company will use the bond to fund its Greener Retail initiative to design, build and operate 10,000 stores globally by 2025.
Starbucks chief financial officer Patrick Grismer said: “We are very pleased to see that our new Sustainability Bond attracted significant investor interest and was oversubscribed.
“The bond demonstrates Starbucks commitment to meaningful, continual progress toward our aspiration of sustainable coffee, served sustainably. It also 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.”
Announced in September last year, the Greener Retail initiative was developed in collaboration with World Wildlife Fund and SCS Global Services.
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The stores will focus on energy efficiency, renewable energy, water stewardship, waste reduction and more to contribute to the company’s sustainability goals. The performance-based standards also power the company’s stores in the US and Canada with 100% renewable energy.
Starbucks CEO Kevin Johnson said that SCS Global Services and World Wildlife Fund will focus on developing the Greener Stores framework this year.
The company will also use the bond to fund support investments in greener cups and packaging in a bid to reduce its environmental footprint.
For this initiative, it will focus on introducing strawless lids globally, as well as exploring next generation of recyclable and/or compostable cups.