Sue Mecklenburg vice president corporate social responsibility

World Environment CenterAnnual Colloquium

May 13, 2005

Contributing Positively to our

Communities and the Environment

Our Mission

6 Guiding Principles help us measure the appropriateness of our decisions:

Respect and dignity for partners Diversity Excellence Customer service Communities and environment Profitability

To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow

Conducting business responsibly

Coffee

Society

Environment

Workplace

Coffee

From farmer to customer

The World of Coffee

In 2004, Starbucks purchased: 299 million pounds of arabica coffee

2.2% of world coffee production

Starbucks paid: $1.20 per pound ($358 million)

This was 74% higher than “C” market prices

Sustaining Coffee Communities

Premium Prices – $1.20 average per lb

C.A.F.E. Practices

Certified and Conservation Coffees, including Fair Trade

Access to Credit

Social Development Projects

Farmer Support Center, Costa Rica

Society

Starbucks in local communities

Investing in Communities

Local non-profits where Starbucks partners volunteer

Youth education through the Starbucks Foundation

Environmental initiatives

Coffee and tea-growing communities

*Total contributions in fiscal 2004 were $14.6 million representing 2.3% of earnings before income taxes.

Making our Mark in Communities

Being Responsible to Customers

Nutrition initiatives In-store brochure Report trans fat in products

by Jan. 2006 Continue to introduce new

products for customers looking for specific nutritional benefits

Public Policy in the U.S.

Starbucks executives meeting with U.S. Representative Joe Barton (R-TX), to discuss business impact of escalating healthcare costs.

Environment

The green behind the aprons

Addressing Climate Change

Climate inventory

Purchase 5% renewable energy

Address transportation impacts and roasting plant operations

Join the Climate Group

Set CO2 emissions target

Measuring Our Environmental Footprint

Environmental Leadership

New paper cups 10% post-consumer fiber

1st ever FDA approval

Save 5 million pounds of new tree fiber annually

Sustainable packaging

Store Design

Workplace

Our partners

Creating a Great Workplace

Industry-leading satisfaction and engagement levels

Healthcare offered to all eligible partners

FORTUNE “Best Companies to Work For” – seven times

Thank You