SEATTLE – WEBWIRE – Monday, November 20, 2023
Starbucks Coffee Company (NASDAQ: SBUX) todayannouncedits Board of Directors intends toestablish a newEnvironmental, Partner andCommunity Impact (EPCI)Board Committee, as a continued evolution of the overall governance approach to the company.
Starbucks has always striven to be a different kind of company. Upon assuming the roleofchief executive officer in March 2023,Laxman Narasimhan and the executive leadership team worked together with partners (employees) torefoundStarbucks with an evolved missionanda set of six promises to the companys most important stakeholders:at our best, for our partners, to offer a bridge to a better future; for our customers, to Uplift the Everyday; for our farmers, to ensure the future of coffee for all; for our communities, to contribute positively; for our environment, to give more than we take; and for our shareholders, to generate enduring returns.
[p”Over the past year, we have beensingularly focused on ensuring thatwe arewell positioned for mutual success with all of our stakeholders,said Narasimhan, chief executive officer of Starbucks.Living our new mission and upholding our new set of promises and values every day is paramount toachieving this mutualsuccess.This committee will keep us accountable and push us forward.[/p]In recognition of the changing operating environment for the company,at its meeting last week, the Board of Directors aligned to theestablishment of the EPCIBoard Committee. The newcommitteewill assist theStarbucks Board of Directorsinfulfilling its oversight responsibilities required to respond to shifting regulations and standards, and drive accountability across Starbucks promises on environment, partners, and community impact. The committeewillalsohaveoversight of internal and external reporting tools and assessments, including the annual Global Environment and Social Impact Report (GESI) and initiatives to strengthen partner engagement and revitalize partner culture.
Starbuckshas always set ambitious goals to deliver performance through the lens of humanity,saidMellody Hobson, independent Starbucks Board of Directors chair.Ournewmissionreflects the changing global environmentandbuildsonour brandslegacyof driving human connection and purpose.This new board committee is another step forwardtohelpus deliveron ourpromises to ourpartners, community, andtheenvironment.
BethFord, currently a Starbucks directorand President and Chief Executive Officer of Land OLakes,will serve asthe independent chair of the EPCI Board Committee.
Jrgen Knudstorp, independent chair of the Nomination and Governance Committee of the Board of Directors, said, We are contemporizing our approach to governance at Starbucks to reflect the future changes we see in the environment.This newcommittee will unify important work already taking place across other areas of the board to help ensure we arelistening to our constituents anddelivering on our promisesconsistentlyand transparently. The committee looks forward to updating our stakeholders on ourwork through the annual GESI Report and our other ongoingassessments.I amexcited that Beth Ford has agreed to chair this committee and to work alongside my fellow directors to continue to drive positive outcomes for all Starbucks stakeholders.
Starbucksplans to continue to lead by example. Consistent withitsstrong record of pursuing ambitious goals, programs, and reporting on environmental, social and governance progress withintention, transparency and accountability, Starbucks will discloseitsFiscal 2023Human Rights Impact Assessment andthe independent assessment ofitsadherenceto theprinciplesof freedomof associationand the right to collective bargainingin fiscal Q1 2024 and itsGESI Report in fiscalQ22024.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 38,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online athttps://stories.starbucks.comorwww.starbucks.com.
Forward-Looking Statements
Certain statements contained herein areforward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and the future results of Starbucks Corporation (together with its subsidiaries) that are based on our current expectations, estimates, forecasts and projections about our business, our results of operations, the industry in which we operate, our economic and market outlook, and the beliefs and assumptions of our management. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.They often include words such as believes, expects, anticipates, estimates, intends, plans, seeks or words of similar meaning, or future or conditional verbs, such as will, should, could, may, aims, intends, or projects. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections. Our forward-looking statements, and the risks and uncertainties related thereto, include, but are not limited to, those described under the Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations sections of the companys most recently filed periodic reports on Form 10-K and Form 10-Q and subsequentfilings with the SEC, as well as:
- our ability to preserve, grow and leverageour brands;
- the acceptance of the companys products and changes in consumer preferences, consumption, or spending behavior and our ability to anticipateor react to them; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, platforms, reformulations, or other innovations;
- our anticipatedoperating expenses, including our anticipatedtotal capital expenditures;
- the costs associated with, and the successful execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investmentsand plans, including our Reinvention Plan;
- the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts;
- the ability of our business partners, suppliersand third-party providers to fulfill their responsibilities and commitments;
- higher costs, lower quality, or unavailability of coffee, dairy, energy, water, raw materials, or product ingredients;
- the impact of significant increases in logisticscosts;
- a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers, whether resulting from broader local or global conditions, or dynamics specific to our relationships with such parties;
- unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, or deflation;
- inherent risks of operatinga global business including geopolitical instability;
- failure to attract or retainkey executive or partner talent or successfully transition executives;
- the potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling;
- negative publicity related to our company, products, brands, marketing, executive leadership, partners, board of directors, founder, operations, business performance, or prospects;
- potential negative effects of a material breach, failure, or corruption of our information technology systems or those of our direct and indirect business partners, suppliers or third-party providers, or failure to comply withpersonal data protection laws;
- our environmental, social and governance (ESG) efforts and any reaction related thereto such as the rise in opposition to ESG and inclusion and diversity efforts;
- risks associated with acquisitions, dispositions, business partnerships, or investments such as acquisition integration, termination difficulties or costs or impairment in recorded value;
- the impact of foreign currency translation, particularly a stronger U.S. dollar;
- the impact of substantial competition from new entrants, consolidations by competitors, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets;
- the impact of changes in U.S. tax law and related guidance and regulations that may be implemented, including on tax rates and the Inflation Reduction Act of 2022;
- the impact of health epidemics, pandemics or other public health events on our business and financial results, and the risk of negative economic impacts and related regulatory measures or voluntary actions that may be put in place, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions;
- failure to comply withanti-corruption laws, trade sanctions and restrictions or similar laws or regulations; and
- the impact of significant legal disputes and proceedings, or government investigations.
In addition, many of the foregoing risks and uncertainties are, or could be, exacerbatedby any worsening of the global business and economic environment. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.