Project Details
Project
Starbucks Sustainability Bond Framework Second-Party Opinion
Client
Starbucks
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
May 2019
Evaluation Summary
Sustainalytics is of the opinion that the Starbucks Corporation (Starbucks) Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The social and green categories eligible for the use of proceeds – (i) Socioeconomic Advancement and Empowerment, (ii) Access to Essential Services, and (iii) Green Buildings – are aligned with those recognized by the Green Bond Principles 2018, the Social Bond Principles 2018, and the Sustainability Bond Guidelines 2018. Overall, the use of proceeds will, in Sustainalytics’ opinion, have positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically 1, 8, 9, 11, and 12.
PROJECT EVALUATION/SELECTION
Starbucks Global Coffee Team and/or Energy & Sustainability team will assess and recommend eligible projects to the Finance department. Loans will require approval by the Chief Financial Officer and all other projects will be reviewed by the Finance department. Sustainalytics considers this in line with market practice.
MANAGEMENT OF PROCEEDS
The proceeds from the sustainability bond will be allocated and managed by Starbucks Finance department. The department will internally track quarterly budgets and actual spend for all the eligible project categories. Pending the allocation, the company will temporarily invest an amount equal to the balance of the proceeds in cash, cash equivalents and/or treasury securities. This is in line with market practice.
REPORTING
Starbucks intends to publish annual updates on its website and in its annual Starbucks Global Responsibility Report, comprising of allocation reporting, and where feasible, impact reporting. The reports will also be accompanied by management assertion that the net proceeds were allocated to eligible projects, and a report by an external auditor on the examination of such assertion. Sustainalytics considers this in line with market best practice.