Starbucks recently announced the issuance of a new US$1 billion (6.91 billion yuan) sustainability bonds to support its programs in ethical coffee sourcing and Greener Retail initiative. It is the third and largest sustainability bonds it has offered so far.
The coffee brand will use the money raised to fund its commitments, including the improvement of energy efficiency, renewable energy, water and waste reduction projects. Also, Starbucks will buy coffee verified by Coffee and Farmer Equity Practices as well as help coffee farmers by providing new or refinanced loans.
Measures in energy and water saving, renewable energy and waste reduction will be taken to help the company to design, build and operate 10,000 greener stores across the globe by 2025. The company is happy to see the new bond attracting much attention from both the investors and the public. According to its CFO Patrick Grismer, the bond “was oversubscribed” already.
“The bond demonstrates Starbucks’ commitment to meaningful, continual progress toward our aspiration of sustainable coffee, served sustainability. It also illustrates a trend toward heavier interests from investors in our socially and environmentally focused projects – in this case supporting coffee farmers and leading in green retail,” said Grismer.