Starbucks has announced its intention to raise up to US$500 million (£348 million) through a senior note offer to pursue global sustainability projects.
A US Securities and Exchange Commission filing made last week revealed that the proceeds of the notes, due to mature in July 2026, are intended to be used to help meet various supply chain projects but to also help the coffee giant manage waste, protect water quality and conserve energy across its facilities and company-owned stores.
Total proceeds are expected to equate to around US$495 million and will be allocated to specific projects within one year. Starbucks’ finance team is to track their allocation and update the market via the company’s Global Responsibility Report, which it releases annually.
Specific projects or technologies have not been included in the filing, but Starbucks’ most recent responsibility report – released last year – cites the company’s need to build more energy efficient stores and invest further in renewable energy projects.
In September last year Starbucks joined the Climate Group’s RE100 initiative, but did not set a date by which it would meet its global energy demand through renewable sources.
The RE100’s annual report for 2016, published in January, showed that Starbucks was just short of 60% of the way towards its global target. Last year however the company confirmed it purchased energy equivalent to its total US and Canada demand from renewable sources, and currently purchases renewable certificates in several countries including the UK.
Starbucks’ plans to renovate its portfolio of company-operated stores are also well documented. All new stores built are done so to LEED Certificate standards and the company is also exploring retrofits of existing buildings.
A total of 500 Starbucks-owned stores across the world were LEED-certified as of last year’s report and this is expected to increase further with a target to reduce energy consumption by 25% from a 2008 baseline by the end of 2015.
