Sustainability at Starbucks: Green Initiatives Implemented in Latin American Stores

The food, beverage and packaging industry in Latin America is increasingly facing environmental and social demands.

In this context, Starbucks, recognized for its coffee shops and its extensive range of products, has become one of the benchmarks that seek to balance profitability with the protection of the environment and the well-being of coffee-producing communities.

While for the end consumer the brand image is related to a pleasant atmosphere and a wide variety of beverages, for industry professionals, especially in the B2B sector, it is crucial to understand how these sustainability strategies have been implemented, what their real impacts are and what opportunities are generated for the entire value chain.

Be sure to read: Sustainability strategies at Starbucks: initiatives and results in the region

Context of Starbucks and its commitment to sustainability

Founded in 1971 in Seattle, Starbucks has expanded globally and is estimated to buy about 3% of the world's coffee supply, according to data from the company itself and the Specialty Coffee Association. This broad presence gives it significant responsibility in the coffee value chain, especially considering that Mexico and several countries in Central and South America are relevant producers of beans. The challenge for the company lies not only in maintaining the quality of its product, but also in contributing positively to the producing communities and minimizing the environmental impact of each link in its chain.

In its 2021 Global Environmental and Social Impact Report, Starbucks reiterated its commitment to becoming a resource-positive company by 2030. Under this promise, the multinational plans to halve its carbon emissions, water consumption and waste generation compared to its historical levels.

This goal is aligned with global sustainability demands and with the industry's tendency to seek strategies that combine economic success with social and environmental responsibility.

Main pillars of sustainability at Starbucks

To understand the scope of the strategies implemented by Starbucks in its Latin American stores, it is essential to analyze the fundamental pillars that support its sustainability commitment.

Reducing the carbon footprint

Starbucks has set out to reduce its carbon footprint by 50% by 2030. This initiative involves substantial transformations at the level of logistics, supply of raw materials and store operation:

• Transition to renewable energy: Many stores are installing high-efficiency LED lighting systems and are looking to source clean energy in markets where this is viable. In Mexico, for example, some branches have electricity supply contracts from renewable sources, which has reduced energy costs and emissions.
• Supply chain optimization: Starbucks works with local and international suppliers to streamline transportation and decrease the carbon footprint associated with distribution. It also collaborates with logistics companies to optimize routes and use less polluting vehicles.
• Sustainable store design: With the "Starbucks Greener Stores" program, the company seeks to certify establishments that meet certain sustainable construction standards. Several branches in Latin America, especially in Brazil and Mexico, have been designed or remodeled to obtain LEED (Leadership in Energy and Environmental Design) certifications, thus reducing energy consumption and emissions derived from their operation.

Efficient use of water resources

Water is a critical resource in the food and beverage industry, not only for product preparation, but also for cleaning and maintaining establishments.

Starbucks has developed recirculation and filtration systems to minimize drinking water consumption in several of its stores. Measures taken include:

• Low-flow faucets and sensors: Help control water use in utensil preparation and cleaning, reducing waste.
• Graywater Reuse: In certain pilot establishments, Starbucks implements stormwater harvesting and graywater reuse systems for purposes such as outdoor cleaning and restroom flushing.
• Staff training: The company invests in the training of baristas and other employees to promote a rational use of water, encouraging practices that minimize waste during the preparation of beverages.

Waste management and circular economy

The production of solid waste, especially related to packaging, disposable cups and straws, is one of the great challenges faced by the coffee shop chain.

To counter this problem, Starbucks has taken significant steps:

• Elimination of plastic straws: Since 2020, the replacement of plastic straws with newly designed lids that allow drinking without using straws has been implemented in various stores in Latin America. This initiative has not only reduced the amount of waste, but has also driven the development of more environmentally friendly packaging solutions.
• Reusable cups and discounts: Starbucks promotes the use of reusable cups, offering discounts to customers who choose to bring their own cup. Plus, explore packaging options made from recycled materials or with environmental certifications.
• Composting and recycling programs: Several stores in Mexico and other Latin American countries have differentiated containers for organic waste, plastics and other waste, promoting a culture of recycling among customers and employees. Coffee grounds, for example, can be donated to local farmers for composting.

Focus on Ethical Sourcing: C.A.F.E. Practices

Sustainability at Starbucks isn't just about what happens in its stores; extends to the coffee supply chain. One of the most recognized programs is the Coffee and Farmer Equity (C.A.F.E.) Practices, developed in conjunction with Conservation International in 2004.

Its objective is to ensure that coffee is acquired under ethical and responsible practices, both environmental and social.

According to SCS Global Services, an entity that verifies compliance with C.A.F.E. standards, 99% of Starbucks coffee comes from "ethically verified" sources. These guidelines include:

• Biodiversity conservation: Farms must implement environmental management plans that protect local fauna and flora.
• Sustainable Farming Practices: Factors such as water use, natural fertilizers, crop rotation, and shade management are evaluated to minimize environmental impact.
• Farmers' Social Welfare: Starbucks demands fair working conditions, the payment of living wages, and the improvement of community infrastructure. In addition, it has allocated funds to support producers in the face of challenges such as the rust fungus or the effects of climate change.
• Empowerment of coffee communities: Through the "Starbucks Global Farmer Fund" that is around 100 million dollars, the company offers loans at low interest rates for technological modernization, renovation of coffee plantations and improvements that increase the productivity and sustainability of the farms.

This comprehensive approach brings Starbucks closer to its goal of achieving 100% ethically sourced coffee and reinforces customer and industry confidence in the quality and responsibility of its value chain.

Sustainability initiatives in Mexico and Latin America

Starbucks' presence in Latin America has expanded hand in hand with operating groups such as Alsea in Mexico, Colombia, Chile and Argentina, among other countries. As the brand grows in the region, sustainable strategies are adapted to the local context and strengthened in collaboration with governments, civil society organizations and other companies.

Starbucks in Mexico

Mexico is one of Starbucks' largest markets in Latin America, with more than 750 stores in operation as of 2023, according to corporate reports and press releases. Some of the sustainability initiatives highlighted in this country include:

• Waste Collection Program: Several stores in Mexico City and metropolitan areas participate in cup and straw recycling schemes, promoting environmental education among consumers.
• Support for local coffee growers: Through alliances with small producers in Chiapas and Veracruz, Starbucks seeks to promote the production of high-quality specialty coffee, boosting the regional economy and ensuring the traceability of the bean.
• Eco-friendly store design: Some branches have rainwater harvesting systems and are built with local materials to reduce the footprint of transporting supplies.

Starbucks in Central and South America

In coffee-producing countries such as Colombia or Costa Rica, Starbucks has supported research projects for the improvement of crops resistant to climate change and has promoted direct marketing, eliminating intermediaries and ensuring better prices for farmers.

In Brazil, one of the largest markets in the region, the firm has invested in adapting its stores to energy efficiency and waste management criteria, implementing straw disposal and promoting discounts for the use of reusable cups.

In addition, it participates in reforestation initiatives to offset emissions, which is part of its plan to be a company with a positive impact on nature.

Strategic alliances, certifications and trends in packaging

To achieve its sustainability goals, Starbucks partners with independent bodies, universities, and local suppliers. Some key partnerships include:

• LEED certifications: The construction of stores with sustainable criteria is based on the LEED methodology, which evaluates energy efficiency, use of materials and indoor environmental quality, among other aspects. The company has achieved LEED-certified stores in Mexico, Chile and Brazil.
• Collaboration with Conservation International: This NGO collaborates in the verification and constant improvement of the C.A.F.E. Practices, helping to protect biodiversity and guarantee fair trade.
• Local suppliers and SMEs: Starbucks works with small and medium-sized companies to develop more eco-friendly packaging solutions, from recycled paper napkins to lids and straws made of biodegradable materials.

Impact on the Latin American industry

Starbucks' initiatives not only impact the experience of end customers, but also set trends in the industry.

For suppliers of raw materials, logistics and energy services, working with a company that demands high environmental and social standards implies opportunities for innovation and differentiation from the competition.

• Demand for sustainable inputs: Suppliers of cardboard, plastic, or edible packaging are incentivized to develop products that meet compostability requirements or have a low environmental impact.
• Transparency and traceability: Logistics companies must adopt emissions monitoring systems, optimize routes, and report their carbon footprint accurately, as Starbucks and other chains demand reliable data to meet their own corporate goals.
• Encouraging research and development: Starbucks' commitment to sustainability drives universities, research centers, and other organizations to collaborate on projects that improve the quality and resilience of coffee crops, as well as the efficiency of the supply chain.
• Shared Social Responsibility: The focus on fair wages and community development obliges suppliers to maintain ethical standards, driving a cultural shift that goes beyond internal audits.

Benefits and challenges of sustainability at Starbucks

Future Perspectives: Innovation and Regional Collaboration

Sustainability at Starbucks continues to evolve through innovation, constant learning, and collaboration with key players in Latin America. The company's goal of achieving carbon neutrality and encouraging 100% ethical coffee sourcing will continue to drive supply chain improvements. For the B2B industry, this represents an invitation to:

• Explore new technologies: From crop moisture sensors to artificial intelligence to optimize logistics routes, the technology sector plays a crucial role in reducing the environmental footprint.
• Strengthen cooperation: Public-private partnerships and collaboration with specialized NGOs can increase the effectiveness of social and environmental responsibility programs.
• Promote the culture of innovation: The demand for sustainable solutions opens doors to startups and local enterprises that offer value-added projects, both in agricultural production and in packaging and logistics.

Starbucks' experience in implementing green initiatives in its Latin American stores shows that sustainability is not just a trend, but an essential component of the long-term business strategy.

The reduction of the carbon footprint, the efficient use of water, responsible waste management and the adoption of ethical standards in coffee production represent concrete steps that the company has taken to position itself as a leader in the field of sustainability.