These slides were presented at the Sustainable Brands London 2013 Conference, to view the associated video or listen to the audio of the presentation please visit www.sustainablebrands.com/digital_learning/packaging/whats-brewing-embedding-unified-business-case-approach-drive-product-bran

2. Sustainability
WHO CARES?!?
Jim Hanna
director environmental impact
starbucks coffee company
2

3. A Dilemma…
The term “Business case for sustainability”
has already become cliché
Those that get it – moved on to brand engagement,
innovation, story-telling, transparency, circular
economy, shared value, etc.
3

4. But The Business Case Still Matters
Impact
The
footprint
I get it!
4

5. Our Challenge…
•
•
To the middle of the bell curve, SB
conversations are still periphery at best
While we look over the horizon, we must
also look back
5

6. Our Challenge…
•
•
As we adopt a new language, we must
remain bilingual to those not yet literate
Even the most forward thinking
companies must continuously make the
business case internally
6

7. Our Company
60 million customers/week
17,000 retail stores
~200,000 partners
62 countries
Starbucks Confidential – INTERNAL USE

8. At Starbucks, real sustainability =
climate mitigation
As a company that relies on a
specialty agricultural product,
climate change poses a potential
direct threat to our business
Starbucks Confidential – INTERNAL USE

9. 75% of Starbucks
controllable environmental
footprint is from the
operation of our stores
Starbucks Confidential – INTERNAL USE

10. roasting operations,
refrigerants, aircraft,
nitrous oxide
25%
75%
Store energy use
Starbucks Confidential – INTERNAL USE

11. Green Building Pledge
All company operated new
stores will be green certified
All company operated stores
will be 25% more energy
efficient, use 25% less water,
use 100% renewable energy,
use locally-sourced &
salvaged materials
Starbucks Confidential – INTERNAL USE

12. Where Do We Focus?
Starbucks Business Drivers for Sustainability
Reduced operating costs
Capacity building in our supply chain
Starbucks Confidential – INTERNAL USE

13. Where Do We Focus?
Starbucks Business Drivers for Sustainability
Larger share of emerging customer demographic
Greater brand love & existing customer loyalty
Starbucks Confidential – INTERNAL USE

14. Where Do We Focus?
Starbucks Business Drivers for Sustainability
Employer of choice & increased retention
A baseline of credibility that provides:
a negotiating tool with policymakers
mitigated risk from NGOs and media
added marketing dimension
Starbucks Confidential – INTERNAL USE

15. Where Do We Focus?
Starbucks Business Drivers for Sustainability
A license to operate
Starbucks Confidential – INTERNAL USE

16. A Couple of Examples…
making the business case
our stores
12/16/09
© STARBUCKS COFFEE COMPANY 2009. CONFIDENTIAL – FOR INTERNAL USE ONLY
our cups
Starbucks Confidential – INTERNAL USE

17. Green Building
Lesson Learned:
speak the language of business

18. Initial focus on
green metrics &
values
Core value of the company
Part of our DNA & mission
Reduce our carbon footprint

19. Reset focus to the
business
Core Value of the company
Part of our DNA & mission
Reduce our carbon footprint

20. Recycling
Lesson Learned:
Perception = Reality
(and you’d better not ignore it)

21. 4 billion SBUX cups
21

22. 4 billion SBUX cups
500 billion globally
22

23. roasting operations,
refrigerants, aircraft,
nitrous oxide
cups
25%
75%
Store energy use
Starbucks Confidential – INTERNAL USE

24. Where Do We Focus?
Starbucks Business Drivers for Sustainability
A license to operate
Fukuoka Ohori
Park
Fukuoka City, Japan
Starbucks Confidential – INTERNAL USE

25. License to Operate – Driven by Customer &
Stakeholder Perceptions
Although packaging waste is small part of our
footprint, it is Starbucks #1 environmental issue to
our customers and stakeholders
Proactively addressing cup recycling is the price of
entry to give us credibility to discuss more
significant environmental leadership
What’s your pain point?

26. Starbucks Goal – This Ends by 2015
1. Increase use of personal mugs
2. Increase ceramics in-store
3. Customer facing recycling in all
company-owned stores
4. Recyclable single serve cups – wherever
the cup goes

27. Some Final Advice
from the coffee guy…
Find your own drivers
to sustainability
(your “who cares”)

28. Some Final Advice
from the coffee guy…
Speak the language of
business - try an exercise
using no green words
Demonstrate how
sustainability supports
business goals,
not vice versa

29. Some Final Advice
from the coffee guy…
Figure out your unique
niche – where can you
lead that no one else can?
Acknowledge and
celebrate others’
leadership

30. Some Final Advice
from the coffee guy…
Choose transparency:
invite media, NGOs,
policymakers and
competitors on
your journeys

31. Some Final Advice
from the coffee guy…
Don’t worry about
free riders
Help the middle of the
bell curve see the light