Starbucks commits more than $50M to sustainability efforts

Ahead of its annual meeting of shareholders March 23, Starbucks, Seattle, has announced more than $50 million in planned investments to advance its target to cut its water and waste footprints in half by 2030.

Starbucks says it intends to invest $10 million in New York-based Closed Loop Partners’ operating company, Circular Services, which was formed in concert with U.K.-based Brookfield Renewable in November 2022. Along with Starbucks, PepsiCo, Unilever, Nestle, SK Group and Microsoft will be investing in Circular Services, bringing the recycling operation’s total investments to nearly $1 billion.

RELATED: Global corporations join Brookfield to invest nearly $1B in Circular Services

Additionally, in support of the company’s expanded water commitment of 50 percent of water withdrawal conserved or replenished across its direct operations, stores, packaging and agricultural supply chain by 2030, Starbucks says it plans to invest $25 million in Kansas City, Missouri-based WaterEquity’s Global Access Fund IV to help advance water access, sanitation and hygiene (WASH).

The fund is aligned with membership in the Water Resilience Coalition (WRC), alongside additional investments from companies including Microsoft, Gap Inc., EcoLab and Reckitt and the U.S. International Development Finance Corp. Starbucks says its investment will help provide water access for low-income populations in countries across South and Southeast Asia, Sub-Saharan Africa and Latin America for WASH projects.

According to Closed Loop Partners, Circular Services is the third-largest scrap hauler in the U.S. and the largest privately held recycling and reuse company in North America, helping major cities reduce the amount of recyclable, valuable materials sent to landfills.

Starbucks says that in support of its goal to reduce waste sent to landfills, it intends to shift away from single-use plastics and champion the use of recycled content. It adds that the partnership with Circular Services supports advancing technology for recycling infrastructure and recycling solutions for packaging types with limited access to recycling programs, such as Starbucks’ hot paper cups.

“Now is the time for bold action to transform the recycling infrastructure in the U.S.,” Starbucks Chief Sustainability Officer Michael Kobori says of the Circular Services investment. “Starbucks is excited to join with Microsoft, Nestle, PepsiCo, SK Group, Unilever, Brookfield and the Partnership Fund for New York City to help generate nearly a billion-dollar investment in Circular Services. This builds upon our longstanding work with Closed Loop Partners, whose NextGen Consortium has made significant strides in advancing sustainable packaging, including bringing hot cup recycling to more communities.”