Starbucks cuts environmental goals as part of $2 billion savings program

Starbucks has revised or abandoned several previously announced environmental goals for 2030 amid a major cost-cutting program. The company aims to save about $2 billion by the end of fiscal year 2028.

The change in priorities is reported by Financial Times. It is part of the Back to Starbucks transformation strategy implemented by CEO Brian Niccol.

Previously, the company planned to reduce by 50% the volume of waste sent to landfills by 2030, and to conserve or restore half of the water used by stores, manufacturing, packaging, and supply chains.

However, in the new Starbucks sustainability report, these two goals are no longer on the list of the company's core commitments.

The goal regarding plastic has also changed significantly. In the 2024 report, Starbucks declared an intention to reduce by 50% the use of virgin fossil-fuel-based materials in consumer packaging by 2030. Now the company aims to reduce the use of virgin plastic in all packaging by only 5% compared to 2019 and to bring the share of recycled material to 25%.

At the same time, Starbucks has maintained the goal of making all customer packaging reusable, recyclable, or compostable by the end of 2030.

Separately, the company is re-evaluating one of its main climate pledges - to cut absolute greenhouse gas emissions from Scope 1, 2, and 3 by 50% by 2030 compared to 2019. The target formally remains in effect, but Starbucks stated directly that it is reassessing it in light of changes in regulation, standards, and other conditions.

The company explains the review of its environmental strategy as a desire to focus on fewer priorities. Financial Times, however, links the changes to a broader cost-cutting campaign. Previous cuts also affected corporate units responsible for sustainability.

Starbucks is not abandoning all environmental programs. The company maintains goals regarding the use of renewable electricity, support for farmers, transition to more eco-friendly packaging, and the fight against deforestation in coffee and cocoa supply chains.

According to Starbucks, the chain has already certified over 13,000 stores under its own standards for reducing energy and water consumption and waste generation, exceeding the previous goal of 10,000 such stores.

The review of environmental commitments is taking place against the backdrop of a broader restructuring. In September, Starbucks also announced the closure of about 250 stores in North America that do not meet the necessary financial metrics or chain standards. The company estimates the cost of this restructuring at approximately $300 million.

Based on materials from: Financial Times, Starbucks